FTSE 100 marks above 5,800 and snaps recovery for the 3rd day straight after the index’s standard stocks were seen trading in green. Among the many stocks trading in green, Marks and Spencer, the massive British multinational retailer recorded a pre-tax loss of $113.7 million in 6 months. The revenue has fallen by 16% to 4 billion pounds.
It was until yesterday when the European market was seen strengthening just during the US election wherein Biden taking over the ground is drawing a massive possibility, which will lead to easy and cheaper trade deals between the two. The United Kingdom market just ahead of the United States elections, yesterday was seen tracking positive cues, and with M&S drawing losses in almost 100 years now, the standard index is not likely to follow the trend, unlike the previous week’s momentum.
Alongside, Britain is hovered by the fears from the second wave of COVID 19 and yet another lockdown due to the spiking number of cases. It was in lockdown 1.0 when clothing and home sales fell 60% due to complete lockdown, and with aggravation towards work from home, formalwear and outerwear, which covered 1/3rd of clothing sales, experienced a steep decline. This resulted in a pullback of 40% in the total sales in the period of Lockdown and the first wave of COVID.
With M&S trading in red, FTSE 100 seems to draw no correlation as tracking the cues from Wall Street; it is believed to have made an extravagant start to the trading session today. Also, if the US election results favor the majority of the Americans, it is likely to be a win-win situation for both the markets, which includes amplifying exports from Europe.
We cannot ignore the fact that the Pound was seen pulling back in the previous week, and it was just today when Dollar reflected its true self as the standard currency during the ongoing US Election 2020. Biden has been ahead of Trump until the last figures just recorded at the time of penning down this analysis, and we cannot ignore the fact that if the former takes over its is likely to benefit the green energy and infrastructure sector and the majority of the stocks of FTSE 100 and FTSE 250 will gain momentum.
The incredible tight presidential race is not completely against Donald Trump as the major number of states from the United States are seen hitting in favor of the previous term’s President. Additionally, just when we are talking about plummeting M&S and the complete dependence on the results of the US elections, we cannot ignore the fact that the majority of the stocks from the index are seen trading in green. One of these FTSE100 company’s is Smurfit Kappa, which has announced to payout dividends after Quarter 3 results breach the expectations. Although the market opened with a dipping of 27 points, but the current gain is notable whatsoever.
