FTSE 100
FTSE 100 started lower the session on Tuesday snapping a two days rebound that boosted from optimism for a new relief package in the USA. The restart of Brexit negotiations in Brussels is in focus today as the two sides need to find common ground on key issues. This would be the last round ahead of the deadline set by Boris Johnson on October 15.
Fears that unemployment will rise after the furlough scheme ends at the end of October, increasing concerns for the economic rebound in the UK. Rishi Sunak announced the previous week a new job support scheme but said that he couldn’t support all the jobs that lost during the coronavirus crisis.
IAG is among the worst performers today as the fears of a second lockdown rise. HSBC Holdings retreat today after yesterday the share surge as Ping An increase stake in the banking group. The banking sector is also lower today, Lloyds is 1.03% lower at 26.31, and Barclays is 0.89% lower at 97.10.
Investors are cautious ahead of the first debate between Joe Biden and Donald Trump as we approach the critical Presidential elections in November. Joe Biden is leading according to the latest polls, and a good performance in the first debate might make things even worst for Trump.
FTSE 100 is 0.86% lower at 5,876 giving back some of yesterday’s sharp gains as investors are cautious and bears are in control of the index. A slide below yesterday’s low at 5,840 will have negative implications for the index and might test 5,772 the low from September 25.
On the other hand, bullish traders need to see a break above yesterday’s high at 5,958. A credible break above might test the 50-day moving average at 6,023.
