A stellar Monday session – it was Europe’s best daily performance since June – didn’t translate to a positive start this Tuesday, with investors unwinding a good chunk of yesterday’s growth.
As various UK firms warn of tough months and decisions ahead – Greggs (LON:GRG) is facing job cuts, and reduced staff hours, once the furlough scheme comes to an end, while Card Factory (LON:CARDC) said forward guidance is a no go for the next 6-months – the FTSE 100 and 250 fell 0.7% and 0.6% respectively.
That leaves the blue chip index dancing around the 5900 mark, immediately retreating from yesterday’s one-week peak.
In the Eurozone the situation was much the same. The DAX spent the early part of the morning flitting around 12800, before firmly dropping below that level as it shed 0.7%, with the CAC sitting at 4825 after slipping half a percent.
Looking ahead of the Dow Jones is set for a tepid start this afternoon, with the futures pointing to a 0.1% dip once trading gets underway stateside.
It might be difficult for the US markets to do anything more exciting as the session progresses, due to the looming presence of the first presidential debate this evening between Donald Trump and Joe Biden.
The covid-19 pandemic has largely obscured the US election from the view of investors. From Tuesday night onwards, however, the markets are going to find it increasingly difficult to ignore the impending vote, which is now only 5-weeks away to the day.
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