Dow hits near 2 month high as trade fears ‘ease’ for the umpteenth time
A positive start from the Dow Jones did little to enliven a moody set of European indices on Monday afternoon.
The Dow Jones jumped half a percent after the bell, sending the index above 24950 for the first time in nearly 2 months. It appears that Trump’s tweet stating he is working with President Xi to help Chinese telecoms firm ZTE (SZ:000063) – a firm that very, very recently Trump banned US companies selling components to – has further eased trade war fears, lifting the Dow to its aforementioned spring high.
As for the eurozone, though modestly in the red, the region’s indices continued to ignore the political situation in Italy. The ascension of populist parties like M5S and League hasn’t sent a chill through the eurozone indices like one would expect – yet, that is. There is still plenty of time in the coming months for investors to be struck by Italy’s increased euroscepticism.
Sterling’s mild rebound against the dollar and the euro – almost imperceptible in the grand scheme of its recent losses – prevented the FTSE from building on its 16 week highs this Monday. Instead the UK index fell 0.2%, a dip that nevertheless kept the FTSE the right side of 7700. The index might be able to wring some fuel out of Tuesday’s UK jobs report, however, if the pound takes the forecast slowdown in wage growth poorly.
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