Covid Treatment Update Lifts Market Mood
Fiona Cincotta August 24, 2020 8:06 AM
Asian markets traded higher overnight and European bourses started higher on covid treatment news and vaccine optimism.
Asian markets traded higher overnight and European bourses are pointing to a stronger start on vaccine optimism.
Whilst vaccine chatter is boosting sentiment, alarm over rising coronavirus cases in Europe are expected to keep gains in check. France recorded over 4000 new daily cases on Sunday, its largest one day jump since mid-April. Spain has also seen an eye-catching rise in Covid cases with 8000 new infections being reported on Friday. The rise in infections in Europe come as people travel for a vacation and attend summer gatherings.
On the corporate calendar Bunzl announced that it will resume its dividend after reporting a solid 16.6% rise in first half profits. Bunzl’s diversified product offering, and broad geographic base means the firm is performing well in challenging circumstances, whilst Bunzl’s defensive qualities are attracting investors. The share price has risen 90% from March lows and are trading over 15% higher YTD. However, the second half is expected to be tougher with a more muted outlook expected from UBS analysts.
The FTSE has jumped 1% higher in early trade, pushing through 50 sma on 4 hour chart. The FTSE looks to target 100 sma at 6102 and 200 sma at 6125. A move above these levels could see more bulls jump in.
Immediate support can be seen at 5950 (low 21st Aug).
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.