- FTSE 100 index up 64 points
- Sterling dips
- Wall Street opens with a surge
3.45pm: Sterling turns red
The Footsie trimmed its gains ahead of close, after a nearly 100-point rally following a buoyant US open.
London’s leading index was up 64 points to 6,139 in the late afternoon while sterling dropped 0.17% to US$1.2578.
According to analysts at OANDA, this bounce is not expected to last for long, although the week ahead is coming with central bank decisions providing stimulus.
Among these, the is expected to announce a £100bn increase to their asset-purchase target.
“The stock market selloff will unlikely be a one-and-done event as COVID-19 continues to intensify in the US and will likely disrupt many states’ reopening plans,” said OANDA’s Edward Moya.
“Virus uncertainty could support another 5-10% over the coming weeks, but all the stimulus efforts from policymakers globally will prevent a complete collapse back to the March lows.”
2.45pm: Dow Jones opens with 700-point leap
The Footsie was on a late-afternoon sprint as Wall Street leaped at open.
London’s leading index was up 89 points to 6,165, the Dow Jones surged 746 points to 25,874 and the S&P500 added 76 points to 3,078.
As expected, stocks recouped after Thursday’s big losses.
However, many states are reporting new coronavirus infections, with rises in new cases above 40% in Arizona, Utah and New Mexico.
Infections in Florida, Arkansas, South Carolina and North Carolina were up 30% last week, according to Reuters.
2pm: UK will not extend Brexit transition period
The Footsie was still up 70 points to 6,146 after lunch but sterling trimmed its gains, now being just above the flatline at US$1.2607.
Michael Gove officially ruled out an extension period for Brexit with a statement on Twitter.
I just chaired a constructive EU Joint Committee meeting with @MarosSefcovic
I formally confirmed the UK will not extend the transition period & the moment for extension has now passed. On 1 January 2021 we will take back control and regain our political & economic independence pic.twitter.com/nZjNpez8LI
— Michael Gove (@michaelgove) June 12, 2020
The Times reported earlier today that full border checks with the EU will be eased post-Brexit, amid fears they may worsen the economic damage brought by the pandemic.
The stocks were seemingly unphased as investors took advantage of the market’s weakness after the rally seen over the first weeks of June.
“A huge reason why Europe feels comfortable enough to post such gains is that the Dow Jones is aiming for a 600-point rebound when the bell rings on Wall Street,” said Connor Campbell, analyst at .
“It’s a sign of just how staggering Thursday’s losses were that such a surge would only recoup a third of that decline.”
12.20pm: Rebound in sight for US stocks
The Footsie ordered a few more points at lunchtime, rising by 77 to 6,154, stubbornly ignoring the UK GDP contraction in…
Read More: FTSE 100 trims gains after US open rally, sterling turns red