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“The FTSE 100 faltered badly on Friday, taking its cue from weak trading in Asia overnight sparked by worse than expected economic data out of China,” says AJ Bell Investment Director Russ Mould.
“China was first in to the coronavirus crisis and arguably one of the first to come out of its first phase, so the fragile nature of its recovery offers an uncomfortable view of the future for other countries. Amid weakening sentiment, safe haven gold steadied at around the $1,950 mark."
Airlines
“The move by budget airline EasyJet to bolster its balance sheet by agreeing to sell and lease back more of its aircraft is an indication of just how uncertain times are for the aviation industry right now.
“All of the sector was grounded on Friday morning following the overnight decision to extend quarantine rules to people returning from France.
“The problem for the airlines is that people’s desire for a break in the sun may be outweighed by their fear of the logistical challenges of holing up for two weeks when they get back, with decisions on which countries to add to the quarantine list often coming at short notice.
“This decision will feel particularly painful as it comes at the height of the UK holiday season and the question now becomes just how long the likes of EasyJet, Ryanair and British Airways-owner International Consolidated Airlines can continue under these conditions.
“It appears summer 2020 will be something of a write off, the industry cannot afford for the same to be true in 12 months.
“And yet until there is a vaccine, the recovery from the coronavirus is likely to be patchy with the risk of travel restrictions between countries when there are localised flare ups.”
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