Benefiting early on from positive correspondence between the US and China, then Western markets lost their way as Tuesday progressed, with some duff data serving to undermine sentiment.
Retreating from its 6-month highs – it was initially expected to open 1000 points away from its all-time peak; a mere hop skip and jump for the index – the Dow Jones fell around 80 points, tumbling back below 28250.
Potentially just a blip after yesterday’s covid-19 treatment excitement, the Dow appeared to take a hit following the release of the latest CB consumer confidence reading. Instead of rising to 93.0, it came in at a 6-year low of 84.8.
The FTSE found itself in a similar situation. As retail employment falls at the faster rate for over a decade, the CBI realised sales balance reading for August sank to -6% – a huge drop from both July’s 4%, and the forecast 7%. This, combined with an unlikely surge from the pound – investors seem to have gotten over any no deal Brexit concerns, for now anyway – sent the UK index 0.8% lower, leaving it at 6060.
The Eurozone indices, on the other hand, just about clung onto their early growth, though at a far reduced level. The DAX added 0.2%, aided by a revision to Germany’s Q2 GDP data, while the CAC led a flagging pack with a 0.3% increase.
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