Europe rebounds off its lows
|Heading into the close, the FTSE 100 is down 17 points, while US markets move higher on positive trade news.
Hopes of a trade deal have, yet again, ridden to the rescue of markets, with US indices edging higher in early trading. Europe remains in the red, although for both the FTSE 100 and the Dax the infamous phrase ‘off the lows’ can be legitimately deployed, both indices having gained over 1%. The prospect of a trade deal, or a delay of the prospective 15 December tariffs, would certainly provide the necessary bullish headlines to generate the beginnings of a sustained rally. Signs of real progress on the Nafta-replacement USMCA have also provided reasons to be bullish, and with December seasonality still strong there is plenty of room to push on to further highs for the S&P 500.
FTSE 100 highflyer Ashtead has fallen to earth today, dropping 6.4% as it issued a cautious update for the year ahead. The US engine of growth may be stuttering, but this could be an overly-cautious view. Since January Ashtead has seen four sizeable selloffs in its share price, but each time a higher low has been created, something that is viewed as very bullish. Will it be fifth time the charm? If US growth turns out to be stronger than expected, the recent drop from £24.50 could well have been an over-reaction.
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