On Friday’s opening, the FTSE 100 took a slide as markets prepare for the furlough scheme to end and the US President tested positive for coronavirus.
The FTSE 100 fell 0.7% to 5,837 points. European and Asian stocks also opened lower, whilst Wall Street is also expected to open lower amid the news of Donald Trump.
Trump tweeted on Friday: “Tonight, @FLOTUS and I tested positive for COVID-19. We will begin our quarantine and recovery process immediately. We will get through this TOGETHER!”
Fiona Cincotta, a market analyst from City Index, said: “The markets are already fretting about an uncertain election and this just adds another layer of uncertainty.”
Despite reassurances from Trump, many have noted that his age could lead to more severe forms of the disease. Polling day is in a month’s time on 3 November.
Shares on London’s blue-chip index are expected to come under pressure as the furlough scheme comes to an end and one in 10 employees in the UK are expected to lose their jobs.
“The Footsie remains fettered by investor insouciance and bleak prospects for the UK economy as a whole, down 23% in the year to date and seemingly unable to break out of its current narrow band,” said Richard Hunter, who is the head of markets at Interactive Investor.
“Further countries being added to the UK quarantine list alongside targeted local lockdowns have done little to lighten the mood, with the moves piling further pressure on several already beleaguered sectors.
“Large fundraisings announced by the likes of British Airways owner International Consolidated Airlines and Rolls-Royce are further indications of travel industry in turmoil,” he added.
