A very quiet Monday left investors’ fears of a hard Brexit as the main market driving force, though at far lower levels compared to last week’s rollercoaster ride.
The FTSE barely moved this morning, flitting about the 7050 mark with little real sense of direction. The fact that the pound saw its earlier losses flatten (though not disappear entirely) against the dollar and the euro meant that the UK index lacked any reason to build on its current near, but not quite, all-time highs.
There was a bit more positivity over in the Eurozone. With Deutsche Bank shrinking its losses to just 1% the DAX could rise by around 50 points this morning, while the CAC maintained a less impressive 0.2% rise. Both were aided by the latest Eurozone-wide Sentix investor confidence reading, which came in at a 4 month high of 8.5.
Looking ahead to the US open and Monday’s snooze-worthy trading looks set to continue. The fact it is Columbus Day means the American session will be light on drama, though the futures are still suggesting a 60 point increase for the Dow after the bell. That rise is likely in response to the weekend’s election news, with Trump’s audio leak scandal, and a bloody second Presidential debate, causing Clinton to nudge further ahead in the polls.
