FTSE 100 continues to edge up
The index is up 2.2% in Asian trading hours on Tuesday, carrying on the positive momentum from the previous day.
UK benchmark FTSE 100 index rose 2.2% in pre-market trading hours on Tuesday 31 March, based on IG trading data.
IG's pre-market FTSE 100 price estimates show the index trading at a price of 5,625.4 as at 02:15 GMT.
Healthy Monday for the FTSE 100 index
The benchmark had closer 0.97% higher on Monday 20 March, in line with the positive trajectory of US indices – a change in tempo from the significant losses made in the previous three Mondays.
IG Asia market strategist Pan Jingyi stated in a client note that with the US coronavirus emergency relief bill being passed into law and ‘finding its way to the economy’, this has led to the S&P 500 and Dow Jones Industrial Average edging up 3.35% and 3.19% respectively.
Similarly, the FTSE 100 index was able to perform healthily for the most part on Monday, despite a 2.78% drop in the first hour of trading. It gradually recovered 3.8% of its price to finish the day at 5,563.74.
According to IG UK chief market analyst Chris Beauchamp, ‘a bounce needs to clear 5600 and then move on above 5800 to revive the upward move’.
All eyes are now turned to a slew of key March economic reports slated to be released this week, which have historically impacted investor sentiment.
UK Prime Minister Boris Johnson tests positive for the coronavirus
Last week, the FTSE 100 was on track to ending the week on a high after trading 12% higher over the first four sessions. However, those gains were reversed on Friday 27 March, with investors preferring to cash out for profit as the number of coronavirus cases in the UK continue to rise.
UK Prime Minister Boris Johnson and Health Minister Matt Hancock had also revealed on Friday that they tested positive for the virus.
This had also shaken the weekend market’s confidence, as evident by Footsie futures dropping around 3% in IG’s after-hours trading.
There are now a total of 22,141 confirmed Covid-19 cases and 1,408 deaths in the UK.
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