The FTSE 100 was built on yesterday’s gradual recovery from the market collapse on Tuesday and was expected to rise further today.
Traders on the IG platform were expected to open an additional 27 points of 6927.6, as it fell about 2% on Tuesday, well below the 7,000 level until recently.
It closed at around 0.5% last night, and could increase the number of bargain hunters biting stocks that seemed to be oversold on Tuesday.
That said, the bounce in the last session did not show much appetite for Covid’s biggest fall from panic this week. The owner of the worst hit British Airways, IAG, ended flat after an early rally. Traders are closely watching how the international travel industry bells are carried today.
Such “recovery stocks” were set up to come from the resumption of the economy after Covid recovered well overnight on Wall Street.
The long-term question is how powerful the recovery is. While new variants of the virus have emerged and continue to spread in parts of the world, such as India, it is a muddy business to speculate when travel restrictions will end and tourism will begin to rise again.
Deaths and hospitalizations are declining in the UK, but last week about 5.2 million people were infected worldwide, causing the most new cases in the world.
That said, the vaccine clearly helps control cases in countries where the jab program is successful. Jab clearly disrupts the ability of the virus to spread, causing and killing a wide range of illnesses, as evidenced by the proportions found in the vaccinated and non-vaccinated groups.
Speed is clearly important for deploying a vaccination program to all adult groups when limiting health and financial damage. The market responds accordingly.
In the first three months of this year, nearly 100,000 businesses were in serious distress compared to the previous quarter, according to a survey conducted today.
Begbies Traynor said the 15% increase was the largest since the survey began in 2014 and has spread to all 22 sectors measured.
Aggreko, a temporary power group that provides generators for events from Glastonbury to the upcoming Japanese Olympics, may be saved from becoming the latest UK PLC to be taken over by private bidders. ..
The board recommended a bid of £ 2.3 billion at 880p per share, but last night’s largest shareholder, Liontrust Asset Management, told Sky News that it would vote against it by today’s deadline. This deal requires the support of 75% of voting shareholders, so today’s attention is directed to the second largest investor, Sprucegrove, on what the intent is.
The stock opens at 870p and can fall if the bid outlook diminishes.
The FTSE 100 was set up for a mini rally where bargain hunters returned after Tuesday’s bloody
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