Listen to the latest market mood for the FTSE 100.
The medium term upside case for the FTSE 100 remains.
The UK has been living under the shadow of Brexit since 2016. Now that Brexit has finally been agreed the UK should be able to attract investors again. Some investors had been holding back until Brexit was agreed. This means that medium term FTSE 100 buyers should keep price supported.
However, recent gains have been limited on the sharp rise in COVID-19 cases in the UK. Furthermore, the sell the fact response to Biden’s stimulus package also dragged down the world’s indices heading into the end of last week. This should offer dip buyers a chance to buy the FTSE 100 as price sits above a key daily trend line.
- The main risk to this trade is from any risk off trading on global growth weakness.
- Any sharp rise in COVID-19 cases in the UK will invalidate this outlook.