The Dow Jones joined in with the US-EU trade war relief rally after the bell, extending Wednesday night’s already chunky growth to hit a fresh 5 month peak.
Jumping around 150 points as the session got underway, the Dow Jones crossed 25550 for the first time since the end of February. It shows the extent to which trade concerns have gripped the markets that a relatively substance-less announcement from Donald Trump and Jean-Claude Juncker has been greeted with such joy, investors just thankful that the US President was more diplomatic in person than he is on Twitter.
The Dow was lucky Facebook (NASDAQ:FB) isn’t one of the index’s illustrious 30 constituents. The controversial social media giant went into meltdown after the bell, shedding nearly a fifth of its value as investors unfriended the firm in droves. This follows Wednesday’s troublesome second quarter report, with Facebook warning revenue growth would ‘continue to decelerate in the second half’ of the year, while investments in security would have a ‘significant impact’ on its profitability. It appears that much of the company’s stem from the Cambridge Analytica scandal, both in terms of the need for that security spend and the fact user growth was flat in the US and Europe.
Over in the Eurozone the DAX continues to speed ahead of the competition, the index driven 230 points higher thanks to its car giants. The likes of Daimler and Volkswagen (DE:VOWG_p) were up anywhere between 2.5% and 4%, as investors’ fears over punitive tariffs on Eurozone automobile exports eased in the aftermath of the Trump/Juncker summit.
As for the FTSE, it remained shut out of Thursday’s hefty growth, the index instead sat flat around 7660. The commodity sector was the main thing preventing the FTSE from joining in with all the fun, including a 3.7% drop from Shell (LON:RDSa), alongside a 9% decline from Intu Properties.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved.