With a rough US open on the horizon, there was no let-up in regards to Tuesday’s losses, the European markets only becoming redder as lunchtime approached.
Of the many, many (many) macro-concerns currently upsetting investors, it appears that the Italian budget row between the country’s government and the European Commission is front and centre. And while the euro is so far relatively unscathed this Tuesday, the region’s indices weren’t as lucky. Waiting for what will likely be a rejection of the controversial, debt-ignoring budget by Antonio Tajani and co., the CAC and DAX shed 1.4% and 1.9% respectively, leaving the latter at levels not seen since December 2016.
The FTSE – hurt by everything from its China-worried miners, its Saudi-concerned oil stocks and its Italy-fearing banking sector – saw its losses widen to 65 points as the day went on, a decline that sent the UK index to a fresh sub-7000, 7 month nadir. And to think, it started the month above 7500.
As for the Dow Jones, it is preparing to wade into the bloodied battlefield with its own significant decline after the bell. The futures have the Dow dropping 300 points as the US session gets underway; that’d leave it desperately clinging on to 25000, and on track for a 3 month-plus low.
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