FTSE 100 resists pulling down; but fears of the second wave of coronavirus persist

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The FTSE 100 defied the austere predictions of a much lower start to open the trading week in positive territory – albeit fair.Despite this, concerns persist over America’s management of the coronavirus epidemic, while traders also have a meteorological eye on a potential second wave.

Caution was advised after the global death toll of 500,000 this weekend and some US states have begun to reassess lock restrictions.

“Monday’s markets are likely to be dominated by the same stories as second wave fears are not just isolated in the United States,” said James Hughes of Scope Markets.

“The UK and Germany are also trying to push this prospect aside, with the UK seeking to impose its first localized lockout in Leicester as the infection rate increases.

“This will be essential for the UK and for the markets, as the success of the local foreclosure will be essential to tackle the virus in the long term and make the economy not as difficult as it has been in the past three months with a national lockout. ”

After a weekend of rhetoric from both unions and managers over the planned 12,000 layoffs, British Airways owner IAG () appeared to be gaining support from investors as its shares outstripped Footsie, though with a lukewarm advance of 1.5%.

Unilver () fell 1.9%. The Anglo-Dutch consumer staples giant was among a group of big brand owners to remove advertising from Facebook due to growing concerns about hate speech and divisive content.

6:17 a.m .: FTSE 100 should open significantly lower

The FTSE 100 appears to open significantly lower amid concerns about a second wave of coronavirus and the United States’ ability to contain the epidemic.

Major Asian markets set the tone as the global death toll from the pandemic reached half a million.

The decision by some states in the United States to reconsider relaxing the lockdown restrictions was worrying.

“Rising infection rates in the United States, which has seen some US states postpone their reopening or close again, saw stock markets go lower this week on Friday, fearing that any economic recovery may take longer to come to fruition, “said Michael Hewson of CMC Markets.

“Despite these concerns, the losses we have seen have been fairly modest compared to previous sessions, as well as the previous weeks.

“There is no doubt that some investors are questioning the pace of any recovery in economic output, with gold prices reaching their highest level since October 2012.

“However, the reality remains that even if there is concern about the economic impact of a second lockout, the barrier to another lockout across the country remains very high.”

Gold, a haven of investment during tough economic times, found support at just under US $ 1,800 an ounce, while crude oil prices fell when fears were that Failed global economy affects demand.

Looking ahead, company news should be a busy week with updates expected from low-cost carrier easyJet (), supermarket chain Sainsbury () and Associated British Foods (), owner of Primark.

Around the markets: Book valued at US $ 1.2368 (up 0.36%); gold changes hands for US $ 1,787.90 an ounce, up from US $ 7.80; Crude crude US $ 40.15 per barrel, down 87 cents.

Main news from Monday

Finals: (), (), PLC (), ()

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