Skip to content Skip to footer

What does UK lockdown mean for FTSE 100?

Recent weeks have seen markets the world over experience record levels of volatility. From the Gold price rush, to the sell-off in Crude Oil. Many markets have been impacted by the COVID-19 Pandemic. Indices and individual equities have seen huge drops in value as nations struggle to find solutions to slow the spread of the now-infamous virus, which has infected over 350,000 people the world over.

The UK, one of the nations impacted, had struggled to implement social separation policies that required residents to “stay at home”. Yesterday saw that change with Prime Minister Boris Johnson taking the decision to enforce a 3 week lockdown of the Kingdom. With this now in full effect, what does this mean for UK related markets like FTSE 100 and GBPUSD.

FTSE 100

Like most major indices the FTSE has been hit hard by the situation surrounding the Coronavirus. 8 years of growth have effectively been wiped out in the space of 2 months worth of trading. The likes of Chancellor Rishi Sunak, and Andrew Bailey, Governor of the Bank of England have thrown the fiscal kitchen sink at markets to help ease the economic “mess” the virus has created.

So far we have seen the freefall show signs of turning into consolidation, with some of the actions taking pushing the FTSE from a low of 4730, to now trading at 5402. Providing the lockdown shows signs of assisting the recovery of not only those affected, but providing time to the government in finding a cure, could we see a twist of faith in the value of this index, as investors eye up the potential gains from investing now?

FTSE 100

GBPUSD

Indications that cable would fall lived long before we heard of COVID-19, going back to when Brexit was the hot topic. However, we did not expect the fall to put us to lows not seen since 1985. With rates in this pair for the last 30 years, nowhere near parity, this drop was one of the reasons why we have seen both the FED and the BOE not only cutting rates but planning on QE potential programs also. Post news of the lockdown, Sterling gained on the Dollar moving from a low of $1.14752 – $1.17893.

With the BoE set for a super Thursday meeting where rates and Asset Purchasing Targets are to be decided upon, we may see more moves still to come.

Tradeview Ltd. is not a portfolio manager or an investment advisor. This Market Report is for informational purposes only. Any statements made or opinions voiced in this Market Report do not constitute investment advice. The Tradeview Ltd. Market Report does not constitute a solicitation to buy or sell in the financial markets. Although the information contained in the Market Report comes from trusted sources, Tradeview Ltd. is not responsible for guaranteeing the accuracy, timeliness, completeness, or fitness of such sources. Tradeview Ltd. shall not be responsible for and disclaims all liability for any losses which may be suffered from access and use of the contents of the Tradeview Ltd. Market Report. Trading any financial instrument on margin, using leverage or otherwise involves considerable risk. Therefore, before deciding to participate in any style of trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney, accountant or other professional upon whom you rely for guidance as to the appropriateness of an investment in any style of trading is recommended.

Tradeview Ltd.

Is licensed to carry on securities investment business and is regulated by the Cayman Islands Monetary Authority (CIMA) as a full securities broker-dealer. Tradeview conducts business pursuant to the Cayman Islands Securities Investment Business Law (SIBL) and its activities fall under the direct supervision of the Investments and Securities Division of CIMA.
Headquarters: 5th Floor Anderson Square, 64 Shedden Road, Georgetown, Grand Cayman, Cayman Islands KY1-1002, BWI.
Website: www.tradeviewforex.com

Tradeview Asia Ltd.

Is licensed and regulated by the Labuan Financial Services Authority (FSA) as a Money Broker, registration number LL15870 licensed to facilitate transactions in foreign exchange pursuant to Labuan Financial Services and Securities Act 2010, the Labuan Companies Act 1990 and the Labuan Business Activity Tax Act 1990.
Headquarters: International Business Financial Centre at Office 5, Jamie Business Center I, Unit F10, First Floor, Paragon Labuan, Jalan Mustapha, 87000 Labuan F.T.
Website: www.tvmgloballtd.com

Tradeview Europe Ltd.

Is licensed as a Category 2 Investment Service Company and is regulated by the Malta Financial Services Authority (MFSA). The Malta Financial Services Authority (MFSA) is the single regulator for financial services in Malta. MFSA is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA is a member of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO) and is a signatory of the Multilateral Memorandum of Understanding with other European regulatory Institutions. Tradeview is authorized to provide financial services across multiple asset classes and is passported in the EU/EEA under MiFID II (EU Markets in Financial Instruments Directive).
Headquarters: 157 Archbishops Street, Valletta VLT Malta 1440.
Website: www.tradeview.eu

Tradeview Financial Markets S.A.C Global

Is authorized to conduct business pursuant to and in compliance with the General Law of Companies (LGS) promulgated by the government of Peru. Tradeview Financial Markets S.A.C is registered with the National Superintendence of Public Registries (SUNARP), company number 13089531. Tradeview Financial Markets S.A.C provides financial services in selected OTC derivative markets in compliance with all applicable government regulations.
Headquarters: Los Mirtos 239 Urb. San Eugenio, Lince, Lima, Perú.
Website: www.tradeviewlatam.com