Yesterday’s impressive rally has failed to extend into Tuesday’s session with stocks flashing red almost across the board as the number of Covid-19 deaths surpassed 1 million worldwide,” says Russ Mould, investment director at AJ Bell.
“The FTSE 100 slipped 0.4% to 5,904 while markets elsewhere in Europe were also weak. Asia was mixed with losses in Hong Kong and small gains in Japan.
“All eyes are on the US Presidential debate later today where Trump and Biden are expected to clash over tax and environmental policies as well as how to protect jobs during the pandemic. Biden is currently leading the polls but his victory is widely considered to be negative for stock markets due to his desire to raise taxes. However, a Trump defeat could also bring relief to a lot of people which in turn could improve investor sentiment.
“On the UK market, utilities was the only sector in positive territory among the blue chip stocks. Financials and real estate were the best performers, while International Consolidated Airlines slumped again as investors worried about how the leisure sector would cope with further coronavirus-related setbacks.”