Tension amid calm as the FTSE 100 awaits new restrictions due to Covid-19
Indecision dominated the first hours of trading the FTSE 100, going from red to green after closing yesterday with a 3.38% drop to 5,804 points on its worst day in just over three months. The benchmark index of the London Stock Exchange is waiting to find out the new restrictions that Prime Minister Boris Johnson plans to announce to curb the second wave of Covid-19.
These new restrictions will affect bars and restaurants and will be a new blow to the tourism sector. Proof of this is that Whitbread, owner of Premier Inn hotels, fell 3.22% early in the morning, while InterContinental Group fell 0.61%.
Whitbread has already announced that it plans to cut up to 6,000 jobs at its hotels and restaurants - about 18% of its workforce - in light of looming restrictions.
Let's see how the FTSE 100 has been trading in recent days, as it has also been affected by the disagreements between the United Kingdom and the European Union in relation to Brexit.
Source: Admiral Markets MetaTrader 5. FTSE100 daily chart. Data range: July 17, 2019, to September 22, 2020. Prepared on September 22, 2020, at 10.30 a.m. Keep in mind that past returns do not guarantee future returns.
As we can see in the graph, the FTSE 100 is supported by the 5,800 point support. It remains to be seen if the new restrictions due to Covid-19 will lead to the London index breaking that support.
Did you know that with Admiral Markets UK Ltd you can speculate not only on bullish movements but also on the bears of the FTSE 100 thanks to Contracts for Difference (CFDs)? If you are interested in starting trading CFDs, just click on the following banner and open a live trading account:
INFORMATION ON ANALYTICAL MATERIALS:
The data provided provides additional information on all analyzes, estimates, forecasts, forecasts, market reviews, weekly outlooks or other evaluations or similar information (hereinafter "Analysis") published on the Admiral Markets website. Before making any investment decisions, pay close attention to the following:
1. This is a marketing communication. The content is posted for informational purposes only and should not be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and is not subject to any prohibition on pre-dissemination of investment research.
2. Each investment decision is made by each client alone, while Admiral Markets UK Ltd (Admiral Markets) will not be liable for any loss or damage arising from such a decision, whether based on content or not.
3. In order to protect the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for the prevention and management of conflicts of interest.
4. The analysis is prepared by an independent analyst, Carolina Caro, SEO implementer (hereinafter "Author") based on personal estimates.
5. While all reasonable efforts are made to ensure that all sources of content are reliable and that all information is presented, as much as possible, in an understandable, timely, accurate, and complete manner, Admiral Markets does not guarantee accuracy. or integrity of any information contained in the Analysis.
6. Any past performance or modelling of the financial instruments indicated in the content should not be construed as an express or implied promise, guarantee, or implication of Admiral Markets for any future performance. The value of the financial instrument may rise and fall, and the preservation of the asset's value is not guaranteed.
7. Leveraged products (including contracts for difference) are speculative in nature and may generate profit or loss. Before you start trading, make sure you fully understand the risks.
