FTSE moves gingerly higher

London shares started the day’s trading higher but a dip in the share value of grocery groups, fashion chains, banks and property firms capped the FTSE’s progress.

Charts (3)

London shares started the day’s trading higher but a dip in the share value of grocery groups, fashion chains, banks and  property firms capped the FTSE’s progress.

A mixture of service sector companies is lifting the index but the rally feels like a house of cards. Although many analysts point to the early reopening in Texas and Florida as the main culprits of the current record rise in cases in those two states, which no doubt they are, the excitement of some citizens after being cooped up indoors for a few months is something that is being faced in every region that is reopening, including the UK. Pictures of busy UK beaches during the current heatwave are fanning concerns over a second wave and some cautiousness.

But for all the enthusiastic sun-bathers there are also the more cautious consumers. As UK pubs and bars start wiping off the dust ahead of the reopening next weekend owners worry that the consumer will remain fearful and come only in small numbers, not only because of health precautions but also the hassle that will be involved including leaving contact details and records of customer visits.

Owners like pub and hotel group Marston’s, which dipped more than 6% in early trade, are bracing themselves for a smaller number of visitors and potentially for the closure of some of the least popular pubs. Major pub group JD Wetherspoon’s share price is holding up better as it is the only chain that has committed to opening all of its venues in July.

The cost of the pandemic to retail businesses is continuing to show every day.  UK shopping centre owner Intu is heading into administration after it failed to agree on a debt deal; shares are trading down 48% this morning.

So far, services and support companies are holding up best, notably Rentokil, Smiths Group and Smurfit Kappa.

More from FTSE 100


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.