FTSE flips to green as Dow Jones rebounds ahead of stimulus deadline

ftse
ftse 100

With something of a mood change from Monday’s drop, the FTSE escaped the fates of its Eurozone counterparts, and enjoyed modest gains as trading came to a close.

Starting the day off with a fall of 0.3%, to 5,867 points, the FTSE has since recovered, up 0.26% to 5,900 in the afternoon. Meanwhile, having fallen by around 0.5% apiece, the CAC and DAX are now down by around 0.04% and 0.92%, to 4,941 points and 12,737 respectively.

Unlike its European peers, however, the FTSE was able to flip back to green as the Dow Jones opened in a bright mood on Tuesday afternoon. Speaking on the Dow’s optimistic start, Spreadex Financial Analyst, Connor Campbell, stated that:

“The key was that the Dow Jones opened in rebound mode, climbing 215 points after sinking by 410 points last night, pushing its not inconsiderable weight back across the 28,400 mark.”

“The day is far from over for the US indices, however, and more volatility could still be expected in the run-up to Nancy Pelosi’s stimulus deadline this evening. That is unless investors are now comfortable with the assumption a deal isn’t getting gone this side of the election, based on Joe Biden’s consistent lead in the polls (and the sizeable relief package a blue wave would likely produce).”

While the Dow Jones open helped the FTSE to push through the poor sentiment generated by new lockdown restrictions in Wales, it was also able to book some notable progress of its own.

The FTSE 100 saw some solid performance from travel and tourism, with IAG up 6.85%, Intercontinental Hotels Group rising 3.59% and Rolls-Royce up 3.18%. However, for many, the FTSE 250 remains the star of the show on Tuesday, with Cineworld currently posting a 10.29% rally, Vesuvius up by 5.49%, and Britvic bouncing by 6.80% as it signed a new bottling agreement with PepsiCo.

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Jamie Gordon
Senior Journalist at the UK Investor Magazine. Also a contributing writer at the Investment Observer, UK Property Journal and UK Startup Magazine. Postgraduate of King's College London with a specialisation in Business Ethics. Interested in Development Economics and David Hume.