The chances of a stimulus plan being approved in the US ahead of the Presidential election looks increasingly slim and this is putting pressure on equity markets.
“A fall in the US was matched in Asia, which was also hit by a downgrade from the International Monetary Fund, and Europe has also opened in the red,” says AJ Bell investment director Russ Mould.
“The FTSE 100 is now trading around its lowest levels since the spring amid a second wave of coronavirus, and all the economic hardship it could involve, and political uncertainty on both sides of the Atlantic.
“British Airways owner International Consolidated Airlines continued to descend as it announced a €1.3 billion loss, revealed big cuts to capacity and admitted it will likely miss a target of breaking even on a free cash flow basis.
“West End property investor Shaftesbury was another big loser in London, down by double-digits as it was forced into a discounted cash call.”