FTSE 100 futures trading flat as investor optimism wanes
FTSE 100 futures are trading flat as investor optimism wanes after the UK government unveils confusing ‘road map’ for easing lockdown restrictions.
FTSE 100 futures are trading flat after market close on Tuesday, suggesting that the blue-chip index will open in much the same manner on Wednesday, as well as highlighting how investor optimism has waned after the UK government revealed its confusing ‘road map’ for easing lockdown restrictions.
On Sunday, the British Prime Minister Boris Johnson unveiled his 50-page road map out of lockdown much to the confusion of UK citizens, with the conditional plan unclear on exactly when or how quarantine measures will be relaxed.
FTSE 100 lifted marginally by furlough extension
The blue-chip index closed 0.9% higher on Tuesday to 5944.77, with UK equities supported by the government’s decision to extend its job retention scheme by four months to the end of October.
British chancellor of the exchequer, Rishi Sunak, may have quelled fears of furloughed employees by extending the scheme, but business owners are still concerned about how much of the cost they will have to bear.
‘The decisions to extend the furlough scheme through to the end of October and, at least for the moment, to continue support at the existing level, are welcome in order to help both employers and employees as we move through this next stage of allowing different businesses to return to work,' Jo Keddie, head of employment at Winckworth Sherwood said.
FTSE 100: technical analysis
The FTSE 100 failed to maintain its initial gains yesterday, with the index faltering at the 61.8% Fibonacci resistance level, according to Josh Mahony, senior market analyst at IG.
‘While the price started turning back towards that initial low of 5895 overnight, we are seeing some stability come into play as the European markets open,’ he said.
‘The recent uptrend does remain intact, and it makes sense to expect further upside unless we see the price break below 5895 support,’ Mahony added.
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