Home Business News Mixed messages shake the market

Mixed messages shake the market

by LLB Editor
22nd Jun 20 11:23 am

Investors continue to be pulled from different directions by various headwinds and tailwinds. On one hand there is positive news such as Spain accepting UK tourists without the need for quarantine, adding to the list of restrictions being lifted across Europe.

On the other hand, the US still seems to be struggling to contain the coronavirus and the risk of a second wave is still front of mind for many people.

“The net effect was a poor start to the new trading week for markets, with the FTSE 100 down 1% to 6,230, Germany’s DAX trading 1.2% lower, and Hong Kong’s Hang Seng index falling by 0.7%. However, pre-market indicative prices suggest that US stocks will open flat later today.

“On the UK market, investors sold down stocks in the energy, financial and travel sectors. Gold miners were in demand including a 1.7% advance from precious metals producer Fresnillo.

“A 0.3% rise in the pound against the US dollar to $1.2388 was good for UK-facing companies including housebuilders Barratt Developments and Taylor Wimpey who topped the FTSE 100 leader board. Other UK domestic players in demand included BT, Next, Auto Trader and Morrisons,” says Russ Mould, investment director at AJ Bell.

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