While the Eurozone and US indices were soaring the FTSE was left panting behind them on Monday, failing to muster the same level of enthusiasm despite a startlingly strong services PMI reading. The index is currently trapped below the 6750 mark, immediately dropping half a percent after the bell.
The FTSE is lacking any macro-momentum bar the continued, and exhausting, Brexit-brouhaha that have been a constant presence since June, meaning it is struggling to significantly break through the levels it has been stuck around for the last few months.
In the Eurozone it will be interesting to see whether the DAX and CAC fall back following yesterday’s unlikely surge. The size of their rise on Monday, especially the DAX which surged nearly 300 points, means both have plenty of room to drop as the day goes on, especially if there is the merest hint of trouble from Italy. Both have begun the day with a mild 0.1% decline, a sluggish pace that could set the tone for the rest of trading if there isn’t any outside influence.
The euro, meanwhile, is in a similar situation following a bizarre session that saw the currency plunge to 20 month lows before ascending, phoenix-like, to 2 week highs against the dollar. It has already given nearly half a percent back to the pound; against the greenback it has fared a bit better, sitting flat just above $1.075
