US rebound puts the fight back into European equities
|In mid-morning trading the FTSE 100 is 40 points higher, as markets look to stabilise after a volatile start to the week.
- Europe adds to its gains after US bounceback
- UK employment data still rosy
- Ashtead fails to hold early rally
European markets are enjoying a modest rebound this morning, following on from yet another stomach-churning session in the US. The Dow’s rebound from a seven-month low, which resulted in the index moving back above 24,000 yet again. After a shaky start, buying looks to be taking hold across European markets, helped by hints of further telephone conversations between the US and Chinese trade teams. After slumping to two-year lows, some rebound was to be expected, but it is still far from clear whether there is sufficient momentum behind this one, when recent recoveries have proven to be short-lived. Sterling traders got some economic data to focus on this morning, which makes a pleasant change from the unrelenting focus on Brexit. Job creation hit its highest level since April, while the rising trend in earnings continued. Throw in a very pleasing revision to UK productivity figures and there looks to be space for further gains in sterling, even while the Withdrawal Agreement remains a busted flush.
Having seen 35% wiped off the share price, investors in Ashtead will be relieved to see that the underlying business is solid. However, with the more difficult winter period coming up, combined with the signs of further slowdowns in US housing, those who chose to sell out on the initial surge in the shares this morning may turn out to be the prudent ones.
Ahead of the open, we expect the Dow to start at 24,487, up 64 points from last night’s close.
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