Jump to content
  • 0
Sign in to follow this  
Michael97

FTSE 100

Question

Where do you see FTSE 100 trading given the new loosening of coronavirus lockdown measures?

Share this post


Link to post
Share on other sites

5 answers to this question

Recommended Posts

  • 0

Hi Michael, thanks for asking this question. It’s hard to provide the FTSE 100 short-term outlook as the price action looks quite choppy in the past few days. Despite the fact that PM Boris Johnson presented a multi-stage plan to loosen the lockdown measures, which should lead to the increased economic and business activity, the FTSE 100 couldn’t move higher.

The Government urged workers to return to work if they cannot work from home, which should help the embattled economy. As a result, the bulls pushed the index higher during the PM’s speech but failed to hold onto those gains later in the day. 

Therefore, I believe that the short-term risk for the FTSE 100 is to pull back to 5,800 after it failed to keep its head above 6,000.


 

Share this post


Link to post
Share on other sites
  • 0

Hi Michael, thanks for coming here.

FTSE lost almost 1% today to close at 6,059.33. In addition, the UK blue-chip index recorded a three-week low of 5,957.49 in the morning session. Today's losses can be attributed to the deteriorating situation in China concerning the new COVID-19 cases.

Investors are worried that the surge in new infections in Asia, Europe and the United States will translate into the reintroduction of the lockdown measures, although officials have played down such speculations. Shares of retailers and airliners were among the weakest on Monday as the recovery rally has been hindered by the increase in new coronavirus cases.

As a result, Beijing has been forced to reintroduce strict lockdown measures and restart its mass testing campaign. These moves have been announced after a new wave of novel coronavirus cases emerged from the city's largest wholesale food market.

Beijing officials reported 36 new cases on Monday, which brings the tally to 79 since three days ago. Still, many believe that China has become much more experienced and knowledgeable about the virus and the "new Wuhan" won't happen again. 

"There is no way Beijing becomes Wuhan 2.0. The world will see China's powerful capacity in controlling the epidemic, including (the) government's strong leadership, respect to science, public's willingness to cooperate and nationwide coordination of control measures. We will win again," wrote Hu Xijin, the editor-in-chief of Global Times.

Moreover, investors are waiting to find out above the monetary decisions that the Bank of England (BoE) will announce this week.

“We expect them to leave the policy rate unchanged at 0.1% and to add 100 billion of quantitative easing purchases,” said the vice president Peder Beck-Friis of PIMCO.

This week's monetary policy meeting at the BoE will take place on Thursday, 18 June.

Share this post


Link to post
Share on other sites
  • 0

Hi Michael, thanks for coming here.

The FTSE 100 index lost 62.82 points today following sharp stock declines from yesterday due to new coronavirus-related concerns. The index price is currently hovering around the 6,147 mark. 

Stocks in the United States dropped after seven states reported a sharp increase in the number of new coronavirus cases, with Houston becoming a new epicentre. Apple shut down 7 stores in Houston, following its recent closures in Arizona and other states.  

Also, it appears that Walt Disney won’t be bringing its California theme parks back to service yet. 

Wall Street ended the session down 3% last night, giving rise to bearish sentiment in Asia today. According to CMC Markets, The FTSE-100 Index was estimated to lose 19 points.

Increasing coronavirus concerns also affected UK stocks yesterday, causing it to drop 3% yesterday.

“That wasn't helped by hints from Washington that the US would impose tariffs on certain UK and EU imports, albeit it on a fairly small selection of goods. The IMF's slashing of its forecasts for global growth also hurt sentiment, so markets were set for a rocky session today.”

Shares of Royal Mail also dropped 6% after the postal service company after its letters division reported worse-than-expected data. Royal Mail said a third of the mailbag crashed over two months during the pandemic. As a result, the company let go of 2000 out of its 10,000 employees.  
Among rising FTSE 100 components were Segro, Schroders and Hargreaves Lansdown, gaining around 1%. The other declining stocks include United Utilities, Rightmove and Auto Trader, which lost 3-4%.

The technology sector did the worst as it lost around 2% on the index.
 

Share this post


Link to post
Share on other sites
  • 0

Hello Michael,

An increase in the number of new coronavirus cases sent FTSE 100 index declining on Friday as concerns were raised among investors because of new data, particularly in Florida which had just restarted a part of its economy after the national lockdown. Florida has registered its largest number of daily deaths yet, while the whole country recorded more than 60,000 cases.  
 

Share this post


Link to post
Share on other sites
  • 0

Hello Michael,

The FTSE 100 dropped 100 points today following the Bank of England’s announcement that there will be no interest rate for the time being.

The UK central bank’s optimism about the country’s economy and no-change decision on rates sent the pound to its highest levels against USD since March. This has backlashed on shares of multinationals earning in foreign currency. Mining stocks hurt FTSE, taking out 100 .46 points of the index by midday.

Stocks were trading up yesterday in Eurozone and the US in spite of weak data on the US labour market.
 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×
×
  • Create New...