City Index | Mar 26, 2020 03:03AM ET
Whilst the FTSE is still managing to cling onto gains heading into the afternoon, it looks uncertain as to whether those gains will be maintained into the close. The rest of Europe has already slipped into negative territory and Wall Street is pointing to a lower start on the open.
The Fed’s bazooka efforts and record-breaking US fiscal stimulus package haven’t been able to turn the tide in the market; a few more ingredients in addition to monetary and fiscal stimulus are needed before a sustained recovery will be seen. These include:
1. Improving coronavirus numbers, both in Europe and US
2. Vaccine
3. Confirmation that China isn’t experiencing a second wave as comes out of isolation.
h3 Food Retailers/h3
h3 Business Services/h3
h3 Construction/h3
h3 Hospitality/h3
h3 Retailers/h3
Travel and Tourism
These stocks are experiencing unprecedented troubles. Whilst the US is set to provide $50 billion to support the aviation industry in its rescue package the same has not happened in the UK so far. Travel restrictions are firmly in place. Whilst they are only temporary, the end is still several months off. Demand will rebound as soon as restrictions are lifted although. That said business travel could struggle to reach previous levels as businesses find alternative ways of doing things. IAG (LON:ICAG), Ryanair (LON:RYA) and easyJet (LON:EZJ) could rebound.
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