FTSE 100 early morning rally short-lived
The blue-chip index enjoyed a surge in early morning trading that was short-lived, but the FTSE 100 has found support this week amid the coronavirus pandemic.
The blue-chip index enjoyed a surge in early morning trading that was short-lived, but the FTSE 100 has found support this week amid the coronavirus pandemic.
The FTSE 100 climbed more than 5% in early morning trading, only for those gains to erode later in the session. However, the index is up 6% so far this week, with government action helping to stabilise UK equities.
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European stocks rise, then fall, after US strike $2 trillion stimulus package
European stocks also saw early gains on Wednesday too, though that trend was quick to reverse as it did for UK stocks, with the Euro Stoxx 50 falling into negative territory later in the session.
The rise and fall in European equities came after the US government approved a $2 trillion relief package – the largest in American history – to support people and businesses struggling to cope due to the economic impact of the Covid-19 outbreak.
‘At last, we have a deal,’ Republican Senator Mitch McConnell said after the bill was passed early on Wednesday morning. ‘In effect, this is a wartime level of investment into our nation.’
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US futures point to stocks pulling back at open
Stock futures suggest that US equities will open slightly lower on Wednesday, with futures on the Dow Jones trading flat, while the S&P 500 and Nasdaq 100 futures were down 0.8% and 0.9%.
The pullback at open on Wednesday that US futures point to is due to Tuesday’s strong gains on Wall Street in anticipation of the coronavirus stimulus deal by Congress, which saw the Dow Jones climb more than 2100 points, representing a 11% rise – its largest intra-day hike since 1933. The S&P 500 soared more than 9% to secure its best day of trading since the 2008 financial crisis.
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