FTSE 100 futures continue to rise as UK stocks maintain uptrend
FTSE 100 futures continue to trade higher, as investors welcome easing of lockdown measures, despite an uncertain outlook for the UK economy due to threat of a no-deal Brexit.
FTSE 100 futures are up 2% after market close, with UK equities extending gains this week as investors welcome the easing of lockdown measures.
However, UK stocks could see their rally come to an end due to the likelihood of Britain bailing out of the EU without a deal.
The blue-chip index closed 2% higher on Wednesday at 6382 and has climbed 27.8% since hitting a low of 4993 on 23 March.
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BoE warns UK lenders to prepare for no-deal Brexit
The governor of the Bank of England (BoE) has warned British lenders to prepare for a no-deal Brexit, as negotiations between the UK and the EU turn sour, potentially scuppering a free trade deal by the end of the year.
In a conference call with UK bank bosses, Andrew Bailey told lenders that they must be ready to support the economy in the increasingly likely event of a the country bailing out o the bloc without a deal, according to a report by Sky News.
‘As we have said previously, the possibility that negotiations between the UK and EU over a future trading relationship might not conclude in a deal is one of a number of outcomes that UK banks need to prepare for over the coming months,’ the BoE said in a statement.
‘It is fundamental to the Bank of England's remit that it prepares the UK financial system for all risks that it might face.’
Covid-19 pushes travel stocks out of FTSE 100
The economic impact of the of the coronavirus pandemic is far reaching, but the travel industry has been acutely effected by the viral outbreak.
As such, travel stocks like Carnival and easyJet have seen their respective share prices collapse, prompting the pair to drop out of the FTSE 100.
Low-cost airline easyJet has seen its stock fall 45% year-to-date, while cruise operator Carnival is down 66% over the same period.
More gains for the FTSE 100
The FTSE 100 continues to climb, with the week having seen the index add around 230 points and push through the peak from last Friday at 6240.
‘A new higher high confirms the uptrend, and while momentum may continue to carry the price higher but pullbacks in the direction of 6150 will create higher lows in the current uptrend,’ according to Chris Beauchamp, chief market analyst at IG.
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