The Deutsche Bank-drag on the banking sector, as well as the continued weariness following last Wednesday’s record-breaking surge, continued to set the tone of trading. The FTSE fell by 0.3%, dipping just under 7350, while the DAX shed half a percent and the CAC dropped by 0.4%.
The French index’s movements are interesting, as they are likely in part informed by Alain Juppe’s decision not to replace the scandal-laden Francois Fillon as the conservative party’s presidential candidate. That realistically leaves only Emmanuel Macron to battle with Marine Le Pen, and though the former currently has a significant chance of winning the presidency – and a slim chance of beating out the Front National candidate in the first round of voting – the markets won’t welcome any more uncertainty.
Looking to the US open and the Dow Jones appears similarly reticent this Monday. The Dow is set to drop 40 points after the bell, a move that would see the index back under 21000. Sentiment could be shifted by this afternoon’s factory orders figure if it beats the expected month-on-month dip, though with a rate hike-eyeing Fed meeting next week any good news data-wise may only benefit the dollar.