The FTSE has already been busy, swinging up and down this Friday as the markets digest a report out of Japan that Shinzo Abe is preparing to resign due to health reasons.
With the Nikkei taking a nosedive, and little else to focus on, the European markets started the session in the red. Their open was also informed by the gains for the euro and pound against the dollar, the currencies rising 0.6% and 0.5% respectively following yesterday’s address from Federal Reserve chief Jerome Powell.
This left the FTSE down half a percent – a swift reversal of the gains it had seen after the bell – and the wrong side of 6000. The UK index has really struggled in the second half of August, especially compared to its galloping US peers, and finds itself at its worst level since the very start of the month.
It will be interesting to see if Bank of England chair Andrew Bailey’s Jackson Hole appearance – far less anticipated than Jay Powell’s – will have any impact on trading. He Zooms in at 2.05pm this afternoon.
The Eurozone indices also had a tough start to Friday. The DAX shed 0.8%, tumbling under 13000 in the process, while the CAC was down 0.7%, forcing it below 5000. A surprise drop in both German consumer confidence and French consumer spending added to their losses.
In contrast, pleased by Powell’s comments on Thursday, the Dow Jones is looking to edge 0.2% higher later today. That will return it to 28550, a price it is having difficulties rising beyond – as its Nasdaq and S&P siblings repeatedly hit all-time highs, the Dow is stuck a stubborn 1000 points adrift of its own record peak.
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