On Friday, as the EasyJet and British Airways were hit after the new quarantine measurements in the UK, which affect the travelers from France and other countries of Europe in the UK. As a result of this, London-listed shares fell hard on Friday.
On Friday, among the ones that got the biggest hit from the news were the blue-chip FTSE 100 .FTSE fell 1.5 percent and the mid-cap FTSE 250 .FTMC lost as much as 1.2 percent. With travel-related stocks, .FTNMX5750 is leading in declines as France has also warned that they would respond to this as well.
What happens for traders?
During the pandemic, most of the traders have lost a lot of money. Many experts believe that today’s situation might be a chance for these traders to get back their funds and get back to trading. However, the situation is very hard to predict, which is creating a very risky environment for traders.
In this climate, there is a list of economic indicators to know as a trader that will help navigate through the issues. It is very important to get to know them very well. Also, many experts in the market are saying that because of such high risks, the profit made during trading can also be very high.
Why did the London stock slide?
Because of the tightening of the quarantine rules, all the travel stocks are getting hit on the market. In addition, investors are also taking money off the table, mainly because there are equity markets that are near their high ranges. Many investors prefer to take a little bit of risk off the table.
Rising viruses, stopping macroeconomic development, and worries regarding Sino-U.S. relationships have impeded global stock indexes from completely restoring their coronavirus-driven declines, with the MSCI world index. MIWD00000PUS lingering around 2 percent below its strong peak set just before the start of the health crisis.
In addition, Friday’s report showed that China’s retail sales fell very unexpectedly in July, also, the factory sector’s recovery failed to pick up momentum which could lead to further problems. As of today, all the eyes are on the US retail sales and if the result will be enough to drive the S&P 500.SPX to an all-time peak.
On the other hand, the FTSE 100 is poised for a second consecutive weekly rise in the United Kingdom. This once again increases proof of the economic and corporate damage done by the coronavirus pandemic, but brews hope for further monetary stimulus.
On Friday, Citigroup analysts published a report saying that they expected dividends issued by firms from the UK to drop as much as 50 percent this year, while miners could outperform if commodity prices demonstrated resilience in the second half of the year.
Banks. FTNMX8350, energy. FTNMX0530 and aviation. FTNMX2710 stocks were withdrawn after leading rises over the week, while household builders. FTNMX3720, life insurers. FTNMX8570 and financial firms. FTNMX8770 was among the smallest decliners of the day.
How did coronavirus affect the financial market?
The economic impact that the Covid-19 had on the world has affected every field of the economy. It includes stocks, bonds, commodities, and many other markets. A huge majority of traders lost a lot of money during the peak of the pandemic and as the economies of almost every country were suddenly stopped, there was not much that could have been done.
The problems were so hard that everything ended up in a collapse of crude oil prices and a stock market crash in March 2020. On March 6, the stock markets worldwide simply closed down, at the same time, the yields on 10-year and 30-year US Treasury securities fell to new record lows.
Many believe that the hardest times are already gone and the markets all around the world are working very hard to repair the damage done by the coronavirus. However, experts are saying that as the second wave of the virus is very much predicted to happen this fall, the situation could get even worse.
According to some of the health experts, the second wave could be even worse than it was, however, it does not mean in any way that traders should give up on the market altogether since, at this point, it is very hard to predict anything.