There was no let up on Tuesday, the US open extending the disastrous trading that began on Monday.
Plunging 400 points to hit a 2 week nadir, the Dow Jones was the latest index to display its abject terror at the trade war Donald Trump seems intent on provoking. The Dow’s day was made worse by the strength of the dollar; though the greenback struggled against the yen, it stomped all over the euro and the pound, sending the single currency and sterling to 19 day and 7 month lows respectively.
Over in the eurozone, where political issues in Germany cut the legs out from under the region on Monday, the situation was just as nasty. The DAX shed 200 points for the 2nd consecutive session, leaving it on track for its worst close since the start of May, while the CAC lost 1.5%.
It was cable’s 0.6% fall that arguably helped the FTSE avoid the kind of gory losses seen by its US and eurozone peers. Though hardly something to celebrate, the UK index’s 0.5% decline was nevertheless half of its post-open drop, and roughly a third of the losses incurred elsewhere.
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