The Dow has hit a new milestone this afternoon, but French stocks are under pressure as political crisis looms, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
FTSE 100 calm but CAC40 hits new four-month low
The calm prevailing on the London exchange contrasts with the ongoing turmoil in France, where the CAC40 has hit a fresh four-month low while government borrowing costs soar. French politics has been out of the headlines for a while, but the government looks at risk as it attempts to pass a budget. European stocks as a whole have failed to keep pace with the US of late, but in France the poor performance of the luxury sector and worries about the political outlook have caused the gap to become a chasm. A repeat of the eurozone crisis is unlikely, but ECB intervention seems to be a likelihood if the situation worsens.
Dow crosses 45,000 for the first time
As Americans look forward to Thanksgiving, the Dow has crossed yet another milestone. The index briefly traded above 45,000, less than a month after hitting the 44,000 level for the first time. But further weakness in the semiconductor index has hit the Nasdaq, and signs of core PCE stabilising has investors concerned that the Fed may have to pause its easing policy sooner than expected.
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