FTSE 100 rises despite Brexit and COVID-19 concerns

The FTSE 100 had a minimal rise of close to 0.1% despite a further rise in COVID-19 cases and Brexit tensions.

Britain’s benchmark index continued its recent consolidation of the 5,848 support level on Tuesday, ending a recent losing streak.

This came as it was reported that Europe’s lead negotiator Michel Barnier, and his British counterpart David Frost, held discussions on Tuesday, but have not agreed any upcoming face-to-face meetings, until the UK feels more concessions are made by the EU.

It was also reported that a further 21,331 new coronavirus cases were recorded on Tuesday.

Markets buoyed by U.S. Stimulus hopes

The S&P 500 ended a five day losing streak on Tuesday as hopes grew of a possible Stimulus bill imminently passing Congress.

Markets have begun to price in a deal, as talks between Speaker of the House Nancy Pelosi and Treasury Secretary Steven Mnuchin continued, with the hope of ending political hostilities and cementing a bipartisan deal before the November 3rd election.

Negotiations over the deal, recently heated up as the Trump administration have pushed to get the bill passed, which many say could be worth over $2.2 trillion.

As of writing, the Dow Jones rose 0.67%, whilst the S&P 500 and NASDAQ gained 0.64% and 0.76% respectively.

Google sued by Justice Department

Today it was reported that the Department of Justice in the United States has filed a lawsuit against Google.

 The suit charges that the company has unlawfully maintained a monopoly within the online search industry. The areas covered in the suit are; “general search services, search advertising, and general search text advertising.”

Google shares actually rose 1.72% as the market appeared to have discounted the news.  Reportedly, the Justice Department conducted a yearlong investigation prior to bringing forth the charges. Today is the first such antitrust lawsuit against a “big tech” company since the DOJ sued Microsoft in the 1990s.

Quote of the day – “It’s not what we do once in a while that shapes our lives. It’s what we do consistently.”

Tony Robbins

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Posted by Tradegatehub on Tuesday, October 20, 2020
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Eliman Dambell

Senior Market Analyst
edambell@tvmarkets.com