T
The FTSE 100 was scheduled to jump past 7100 after Boris Johnson continued his strong electoral performance with further reopening of the economy after Covid.
The ministers were ready to confirm today the reopening of pubs, restaurants, hotels and cinemas from May 17, boosting confidence in those sectors and in the markets in general.
Economic data has shown a strong rebound in manufacturing, construction and services, albeit from the drastic levels of contraction of a year ago.
With that in mind, the FTSE was called 22 points at 7148 in pre-market trading this morning.
Johnson’s victories were seen as a reward for Brexit and the launch of the vaccine, which has changed the rules of the game for both his popularity and the UK financial markets.
Avatrade traders expected the pound to have a strong session thanks to the clear strength of its leadership.
Some have said that key seats on the red wall voted for him in the hope that his leadership would bring in jobs and “level” profits. Whether it complies remains to be seen.
Today it emerged that its much-acclaimed free ports at London Gateway, Teesside, Liverpool, Humber, Felixstowe, Southampton, Plymouth and East Midlands Airport would not get all the tax benefits for exporters. This is because 23 countries with which the government has made trade agreements specifically prohibit manufacturers in free ports from obtaining tax benefits.
Details of the plan are expected in the queen’s speech this week.
However, it remains to be seen whether such apparent errors discourage voters, given Johnson’s extraordinary record of winning votes.
Global markets were expected to have a decent session, with futures prices significantly higher in the US and Europe.
Weak US labor data on Friday highlighted the damage Covid has done to the US economy. Employment has long been a concern for the Federal Reserve in its deliberations on whether or not to toughen its policy. super flexible monetary.
With seven or eight million still unemployed, the pigeons will continue to win at the Fed for some time, which will keep share prices sustained.
Markets have been nervous for months, fearing that a reduction in QE and a near-zero interest rate policy were imminent. Yields on US Treasuries, a representation of interest rates, have risen sharply accordingly.
After the US job market figures, that seems completely premature.
Oxford Economics researchers today issued a note predicting that China would raise interest rates slightly as it reforms the way the country conducts its monetary policy.
Liberum, the broker, published research highlighting how carbon capture and storage technologies would float on the stock market in the coming years as a result of the COP26 summit. His report details how large amounts of investment are needed to meet national decarbonization commitments.
It highlights the continuous investment needs in wind and solar energy, but also in battery technology and hydrogen fuel cells. Liberum also says that renovating existing buildings to make them more environmentally friendly, and creating new, greener construction will be key areas for investors to benefit.
Asian markets had a mixed morning, with Japan’s Nikkei gaining 0.6%, but China’s CSI 300 down 0.7%.
READ MORE
In cryptoland, Ethereum rallied through the $ 4000 level, with Avatrade claiming that “it is just the beginning of this rally as money continues to flow into Ethereum. There is no doubt that Ethereum is going to the 5k price level… the long-term price target for Ethereum is still 10k.
However, he warned that corrections (sharp drops) would occur along the way.
Dogecoin fell sharply after Elon Musk, the Tesla founder whose comments have spurred joke crypto, called it a “hustle” in a break from his usual optimistic language.
Analysts at the Swissquote trading platform said the price of oil could benefit from the cyberattack on the largest US oil pipeline, which was taken offline on Friday. A criminal gang demands a ransom for the return of services after pirating the Colonial Pipeline, which transports 2.5 million barrels a day.
The IG platform was forecasting that Brent crude would rise 0.7%, which could boost BP and Shell stocks today.
Numis brokers issued a buy note on Polar Capital, the fund manager famous for its successful choices in the tech sector. Numis cautions its clients that while the technology franchise is fully valued, it has other fund sectors that are overlooked, such as healthcare, finance, and emerging markets. “Polar is more than a one-trick pony,” he concludes, advising readers to buy the stock up to 950 pence. Shares open today at 783p.
–
