Spreadex Market Update
Pound widens gains against the dollar; FTSE maintains post-Brexit rebound
The Dow Jones jumped nearly 150 points after the bell, taking the US index back above 17500 for the first time since last Friday despite a relative damp squid of an afternoon data-wise. The FTSE, meanwhile, settled at a 2.5% rise, while the DAX and CAC increased by 1.7% and 2.4% respectively. After a slow morning the pound eventually burst into life this Wednesday, more than doubling its gains against the dollar to take cable back to $1.35; it even overcame its reticence against the euro, climbing to €1.21 after rising over half a percent.
Against the odds this post-Brexit rebound has carried through to a second day; not only that but, if analysts are correct, the markets may well receive a boost this evening in the form of the Federal Reserve’s bank stress test results. If the US banking sector proves its resilience in the face of the Fed’s imaginary scenarios it may reassure investors that the institutions can deal with the fallout of Britain leaving the EU, therefore extending the rebound into Thursday. If the report uncovers too many weaknesses, however, the market’s recent gains may be undermined.
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