A buoyant start from the Dow Jones failed to help out the European indices this Thursday afternoon.
The Dow Jones quickly clawed back a big chunk of last night’s post-Fed meeting minutes losses after the bell, shooting up 160 points to tickle 24950. These gains coincided with a pull back from the dollar, which is now flat against the pound, where it at point had risen 0.4%, while shedding 0.2% against the euro.
This suggests that, despite the initial hawkish jolt of the Fed notes, the meeting minutes haven’t substantially changed sentiment in the US, with investors perfectly happen to keep the Dow around the 24900 to 25000 mark. Or, at least, it will if the Dow can avoid a descent into the red as the session progresses, something it has proven to be susceptible to in recent weeks.
While the Dow started off in a good mood, the European indices found it harder to shake the losses the US itself had triggered. The DAX and CAC fell 0.9% and 0.6% respectively, irked by the euro’s gains against the pound and the greenback, with the FTSE down an ugly 1.3%, as the sharp drops seen by the likes of BAE Systems (LON:BAES), British American Tobacco (LON:BATS) and HSBC (LON:HSBA) countered the gains of Barclays (LON:BARC), Centrica (LON:CNA) and RSA Insurance (LON:RSA).
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