Italy outperformed today with the market giving the new government the benefit of the doubt. It's a reminder that markets almost always breathe a sigh of relief after elections.
Closing changes for the main European bourses:
- Stoxx 600 -0.3%
- UK FTSE 100 -0.2%
- German DAX -0.4%
- French CAC -0.2%
- Italy MIB +0.9%
- Spain IBEX -0.6%
The most-interesting chart to day is the FTSE 100, which has slapped on a huge doji star after breaking a major area of support. It always looks darkest just...before it goes completely black.
The irony of a 5 percentage point tax cut costing the market and currency more than 5% shouldn't be lost on any policymakers, anywhere.
I would think the lack of an emergency rate hike would be good for UK corporates but only dominated locally.
