The FTSE 100 rose 0.2% on Wednesday’s opening to 5,963 points despite Donald Trump abruptly ending US stimulus talks.
Whilst the Dow Jones industrial average fell by 1.3% towards close following Trump’s actions, London’s blue-chip index saw a rise.
Trump tweeted yesterday: “I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business.”
The US President went on to tweet plans to show economic support.
“If I am sent a Stand Alone Bill for Stimulus Checks ($1,200), they will go out to our great people IMMEDIATELY. I am ready to sign right now. Are you listening Nancy?” He was referring to Nancy Pelosi, Democrat speaker of the House,” he wrote.
He continued: “The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business. Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now!”
His tweets also affected the price of US oil, which fell by 1.5% to just over $40.
Connor Campbell, a financial analyst from Spreadex, commented on the latest moves by Trump and the rise in the FTSE 100:
“In a surprising turn of events, the European markets didn’t follow the lead of the Dow Jones on Wednesday morning, instead bobbing about in the green.
“The Dow Jones immediately panicked, sinking 375 points to fall back below 27,800, having crossed 28,270 earlier in the session.
“Yet the European markets have openly fairly calmly this Wednesday. In fact, they’ve barely moved at all. The FTSE added 0.1% as it stuck its nose across 5950, with the DAX flat just above 12900 and the CAC lurking around 4900 effectively unchanged,” he added.