Maintaining its 0.4% and 0.6% declines against the dollar and euro respectively, there has been little this Monday to distract the pound from the latest Brexit-twist. While sterling’s losses were fairly steady, the FTSE has become more negative as the morning progressed, shedding its early gains to sit flat around 7260. The UK index has suffered from a serious case of inertia in the last fortnight or so, failing to match its all-time highs despite sitting just 50 points away, and is now showing signs of doubt that its current position is justified.
The Eurozone also lost its way as Monday went on; the DAX turned flat and is threatening to fall back below 11800, while the CAC dipped by 0.2% having been up by the same amount earlier in the session. It seems that the euro’s strength following a jump in region-wide consumer confidence – the currency has taken more than half a percent off of both the pound and the dollar – has dampened interest in the German and French indices, with the latter also struggling with Marine Le Pen’s ongoing presidential push.
Looking to the US open and the Dow Jones seems set to take its cue from the European indices, the futures suggesting a 15 point fall after the bell. And while that still leaves the Dow at or around 20800, it marks the index’s latest failure to substantially break above that level. There is some data this afternoon to help the Dow along on its way, however, with the durable goods orders reading expected to jump from -0.5% to 1.6% month-on-month.