FTSE Points Higher As GDP Shows Strong June Recovery
Fiona Cincotta August 12, 2020 7:46 AM
UK enters recession as QoQ GBP -20.4%, although June GDP beats forecasts with +8.7% jump
European bourses are looking towards a lower start to trading on Wednesday, following on from a choppy session in Asia amid rising uncertainty over whether US lawmakers will agree to an additional round of stimulus. The FTSE looks to outperform its peers, aiming higher after better than forecast GDP data and on rising oil prices.
After its phenomenal run higher, gold is dropping hard this week. The precious metal is already down over 7% this week and could slip further in light of the excessively quick upswing overt the past month. Vaccine hopes and global economic recovery optimism have taken the shine off gold. US treasury yields and the greenback rising have also added downward pressure to the price of the yellow metal.
There aren’t many stocks which have benefited from the coronavirus lockdown, but Just Eat Takeaway has been one of them. The online food ordering company saw a surge in revenue and underlying profit in the first six months of the year, a customers and restaurants alike rushed to use its services. The stock is up an impressive 18% year to date.
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