FTSE 100 holds steady as markets await Bank of England governor Andrew Bailey views on economic recovery
The FTSE 100 was expected to hold steady today after a mixed session in Asia this morning and further confusion over what coronavirus stimulus measures the US was likely to take amid flip-flopping from Donald Trump.
Britain's premier index of shares was called up 7 points at 5953 today, matching similar small gains across Europe as investors waited to hear what Bank of England governor Andrew Bailey says in his speech later this morning.
With covid causing mayhem in many industries, markets will want to hear his views on the economic recovery and chancellor Rishi Sunak's withdrawal of many fiscal stimulus packages sooner than his European peers.
The President in the past seven days has called for a multi-trillion dollar package to be agreed by Republicans and Democrats, announced it would be postponed until after the election, declared he wants another stimulus including $1200 cheques sent to people's homes and, last night, a $25 billion package for airlines.
Each time he announces a different idea, the markets react sharply, and last night was the turn of the US airlines, which surged more than 4% on hopes of help on a session that saw markets on that side of the Atlantic recover from the previous session's falls.
The need for some kind of bumper stimulus was reinforced by the release of last month's Federal Reserve meeting minutes which showed members warning about the need for major fiscal intervention from the government to keep the economic recovery going.
Last night's vice presidential TV debate is also likely to help markets forward as Republican Mike Pence was seen as having beaten Joe Biden's running mate Kamala Harris.
Concerns over the impact of pub lockdowns will continue to rattle the leisure sector today after Greene King announced up to 800 job losses yesterday. The brewer said it will keep 79 sites closed and called on the government to step in and help businesses in the sector get through the next few months. The state sponsored furlough scheme comes to an end this month.
Fuller's, Young's, the City Pub Group and JD Wetherspoon have all made similar job warnings, with Fuller's and Young's saying around 1000 jobs were at risk between them.
The grim jobs news was followed by warnings of 800 cuts at Manchester Airports Group, owner of London Stansted, East Midlands and Manchester airports, adding to concerns among economists of a lengthy downturn in consumer spending as people fear for their jobs.
