Covid Treatment Update Lifts Market Mood
Fiona Cincotta August 24, 2020 8:06 AM
Asian markets traded higher overnight and European bourses started higher on covid treatment news and vaccine optimism.
Asian markets traded higher overnight and European bourses are pointing to a stronger start on vaccine optimism.
Whilst vaccine chatter is boosting sentiment, alarm over rising coronavirus cases in Europe are expected to keep gains in check. France recorded over 4000 new daily cases on Sunday, its largest one day jump since mid-April. Spain has also seen an eye-catching rise in Covid cases with 8000 new infections being reported on Friday. The rise in infections in Europe come as people travel for a vacation and attend summer gatherings.
On the corporate calendar Bunzl announced that it will resume its dividend after reporting a solid 16.6% rise in first half profits. Bunzl’s diversified product offering, and broad geographic base means the firm is performing well in challenging circumstances, whilst Bunzl’s defensive qualities are attracting investors. The share price has risen 90% from March lows and are trading over 15% higher YTD. However, the second half is expected to be tougher with a more muted outlook expected from UBS analysts.
The FTSE has jumped 1% higher in early trade, pushing through 50 sma on 4 hour chart. The FTSE looks to target 100 sma at 6102 and 200 sma at 6125. A move above these levels could see more bulls jump in.
Immediate support can be seen at 5950 (low 21st Aug).
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