Spreadex Market Update
Sterling continues to rise thanks to May’s PM appointment, while Dow Jones eyes all-time high
Sterling’s rise, which has seen it climb to $1.315 against the dollar and €1.185 against the euro, seems to have stemmed from Theresa May’s appointment as Prime Minister. The prospect of Article 50 not being triggered until next year (as May has stated in the past) is likely a relief to the pound, helping push it higher despite the probability of a rate cut from the Bank of England on Thursday. The FTSE, meanwhile, found little joy in sterling’s rebound, the UK index instead hovering around the 6670-6680 mark it started the session at.
In contrast to the FTSE the DAX and CAC relished the relatively weakened euro, each index jumping 1.5%. That leaves the German bourse a mere 20ish points away from the 10000 mark, a level it hasn’t seen since the day the referendum results were revealed.
Looking ahead to the US open and the Dow Jones has a real chance of reaching its all-time highs this Tuesday afternoon. The futures are suggesting a 90 point rise after the bell, something that leaves the Dow at 18310, 40 points away from the highs struck in May of last year. A continued rebound from the pound against the dollar will likely be key if the US index wants to hit that peak, as will a decent JOLTS job openings number, expected at 5.74 million against 5.79 million last month.
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