It is worth noting that the S&P 500 index once again managed to outpace, setting new records, despite the economic shock of the epidemic, while the Nikkei also saw a healthy recovery.
The US Federal Reserve’s response has certainly helped in this regard, with a number of new ones Monetary policy Interventions are far away in areas of fiscal policy. And the various lending programs, along with the purchase of the so-called “fallen angels” of corporate debt, almost acted as a means against the bankruptcy of a number of major American companies.
It is also interesting to note how much difference is in the related recoil frequency, and how difficult it is for the FTSE 100 compared to its peers, although if you dig deep enough below the surface, it is also easy to understand why the FTSE has been affected.
So, while the FTSE 100 is clearly suffering this year, it also stands to reason that it could also be the most vulnerable to a strong recovery, should the UK and global economies see a return to normality in 2021, with a return to above the 7,000 level potentially. And the highest is about 7400.
The sectors most affected by the epidemic: travel, entertainment, general retail, energy and banking, all of which make up a large proportion of the FTSE 100, precisely sums up why the FTSE 100 has been affected so much, and this is before we consider that the Brexit transition period ends in End of this year. If we look at the likes of IAG, it’s down by over 60%, Rolls-RoyceAnd the BPAnd the Royal Dutch Shell And the Lloyds Banking group by more than 40% less, and NatWest GroupMore than 30% weaker, the evidence is clear.
The bounce in Germany’s DAX has been impressive as well, but there are concerns as we look to 2021.