FTSE tries to smash 6,000 again

“Investors started the week in a positive mood with the FTSE 100 making another attempt at the 6,000 mark as the world looks to emerge from lockdown and get back to work,” says Russ Mould, investment director at AJ Bell.

“BT was among the risers, amid hopes the withdrawal of dividends announced before the long weekend will be a price worth paying if it sets the business on a more sustainable path going forward.

“Airlines and airline-related stocks remained firmly grounded after Boris Johnson confirmed a 14 day quarantine for travellers arriving in the UK alongside a series of other changes to current containment measures.

“The experience of countries dealing with the pandemic will be akin to a trapeze artist in the coming weeks and months as they attempt the high wire act of rebooting their economies without risking a significant second wave in the coronavirus pandemic.

“Indications that countries like Germany and South Korea are seeing an increase in infections is likely to give markets some pause for thought.

“This week we are slated to hear from a roster of central bankers and their latest thoughts on the amount of support needed for the economy.

“Rock-bottom interest rates and significant stimulus efforts suggests there is little more they can do but recently appointed Bank of England Governor Andrew Bailey has not ruled out negative rates as possible policy response.

“While the UK marked VE day on Friday, the US reported some fairly dire jobs numbers, although the fact they were not quite as dire as feared helped Wall Street stage a rally. Sterling fell 0.1% against the dollar to $1.2394.”

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