After erasing their losses at lunchtime, the markets couldn’t help but slip back into the red, despite a couple of positive headlines.
The midday rebound seemed related to good news out of the Oxford vaccine trials, with reports that it was prompting a ‘strong immune response’ in patients.
Then there was Rishi Sunak’s announcement that the government is extending the furlough replacement scheme, by launching a new grant scheme for companies in areas under tier 2 restrictions while making changes to the level of employer contributions and number of hours an employee must work for a firm to be eligible.
Yet this had only a limited impact on investors’ disposition. The markets remain deeply worried by the scope and scale of rising covid-19 cases and subsequent restriction measures around the world, but especially in Europe.
The FTSE fared best out of the European indices, dipping just 0.2% as it lifted away from the morning’s 5-month lows. But that’s in large part due to the pound unwinding some of yesterday’s super-surge; sterling was down 0.6% against the dollar and 0.3% against the euro.
Elsewhere the DAX dropped 0.6%, pushing the German bourse below 12,500, while the CAC shed half a percent.
The Dow Jones wasn’t immune to the day’s losses, falling 130 points as it sporadically slipped under 28,100. The index might be feeling a bit nervous ahead of tonight’s second, and final, presidential debate between Trump and Biden, as well as the mixed signals regarding the progress of a fresh covid-19 stimulus package.
"Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved."