The European markets looked increasingly ugly as Wednesday went on, investors fearing what could happen after the US open.
Despite a bevy of broadly positive updates from the likes of Whitbread (LON:WTB), Persimmon (LON:PSN) and Lloyds (LON:LLOY), the FTSE couldn’t avoid a half a percent decline, a shift that dragged the index below the key 7400 it had previously surpassed earlier in the week. That Brent Crude has slipped back under $74 per barrel has helped take the shine off the index, with Shell (LON:RDSa) and BP (LON:BP) themselves down 1% and 2% respectively.
Ignoring the fact the euro is down 0.2% against both the dollar and the pound, the DAX really lost its head this Wednesday. With a 180 point drop the German index was easily the morning’s worst performer, sinking towards 12350 for the first time in just shy of a fortnight.
So, with the European indices spooked, what exactly is in store for the US open? Well, at the moment the Dow Jones is only expected to dip 40 or so points. However, combined that with last night’s 400 point plunge and the Dow is back below 24000, a level it hasn’t seen since in almost 3 weeks. The index is stuck in a nasty losing streak, one that is threatening to send it back to the lows struck in the trade war-fearing climate that defined late March and early April.
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