FTSE drops as economic picture remains unstable

The markets keep taking two steps forward, one step back, as trading enthusiasm keeps clashing with the current economic realities across the globe.

Downtrend 4

The markets keep taking two steps forward, one step back, as trading enthusiasm keeps clashing with the current economic realities across the globe, particularly after the Federal Reserve didn’t offer any words of reassurance yesterday about the state of the world’s largest economy.

In London, travel companies are back in the firing line as European countries keep going back and forth on their decisions whether to open their borders. Major tourist destination Greece was one of the first countries to start inviting foreign tourists but now the Greek opposition party is calling for the resignation of the tourism minister, arguing that the reopening of Greek borders came too soon. Also, Germany and Denmark are actively advising their citizens to reconsider or not to travel to Greece at all. This is replicated across numerous other European borders and will hamper travel during the crucial summer weeks. Carnival shares have dropped close to 10% while British Airways parent International Consolidated Airlines is trading down 6.9%.

After years of trying to unify its dual structure into one main unit the Anglo-Dutch consumer goods firm Unilever decided to make the UK its main base. The company faced strong opposition from shareholders two years ago when it attempted to close its London headquarters and operate only from Netherlands, but this year shareholders will find it difficult to go against the company’s decision, not only because they will not be able to physically attend meetings but also because the erosion of value caused by the corona will outweigh all other concerns. Shares are trading 1.6% higher.

Just Eat Takeaway is in the process of becoming the world’s largest online delivery firm after making a $7.3 billion bid for Chicago-based Grubhub. The merger, if successful, will ensure Just Eat’s dominance over rivals Uber and DoorDash. Shares have initially dipped but are now nudging higher 1.%

More from FTSE 100

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.