Weak US dollar helps to lift European markets to five-month highs
We look set for another positive session for markets in Europe today with the DAX making another 5-month high on the back of last night’s Fed minutes, which saw most officials backing the slowing of the pace of hikes soon, with several officials seeing risks from further rapid hikes.
At a time when concerns are growing about a slowing of economic activity and possible recession there is relief that central banks appear alive to the threat of being too aggressive on further tightening measures in the coming months.
The outlook is also being helped by lower energy prices, with a stronger pound and euro, which is helping to dilute the inflationary impact of oil prices. In the last few weeks crude oil in GBP terms has dropped to its lowest level since before the Russian invasion of Ukraine at £70 a barrel, having been as high as £100 in the summer. This does rather beg the question as to why pump prices…