The FTSE-100 index looked set to jump 46 points to 6190 today amid hopes for a wider European recovery from the coronavirus.
A bumper aid scheme for troubled parts of the EU was launched yesterday after the European Commission announced plans for an e500 billion aid fund for the worst-affected European countries. The funds will be raised through an issue of bonds and would be handed out as grants to deserving regions hit hardest by the economic impact of the virus.
China continues to be a worry for traders, however, as the growing concern about Beijing’s looming crackdown on security laws in Hong Kong causes jitters. A drumbeat of opposition and veiled threats from the US continued to rumble but with US secretary of state Mike Pompeo declaring Hong Kong was no longer autonomous from China. If that stance holds, Hong Kong would no longer benefit from lower tariffs than China’s.
CMC Markets analyst Michael Hewson said: “A US-China flare-up could let some of the air out of the current air of optimism.”
FTSE 100 LONG (Buy)
ENTER AT: 6155.4