When 2020 began, few would have predicted what the challenges and hardships awaited. After the beginning of a seemingly normal year FTSE 100 The index rose moderately until the third week of January. Unfortunately, this is Footsie’s peak in 2020. Over the course of several weeks, a new coronavirus (later named Covid-19, which occurred in Wuhan, China) spread around the world. When people died around the world, the stock market collapsed and the economy collapsed. This is my timeline for the year and features the FTSE 100’s most important five days.
1) January 17: Peak of FTSE100
The FTSE 100 closed at 7,542.4 on December 31, 2019. By January 17, it had risen by more than 130 points (about 1.8%) to reach a closing price of 7,674.6. This was the highest level of the Best Equity Index in 2020, reaching just 12 trading days later.
2) March 12: Footsey’s biggest autumn day
On March 9, the price of Brent crude fell by a quarter, but did not cause the worst day of the FTSE 100 in 2020. Three days later, on March 12, President Donald Trump’s ban on most European flights to the United States surprised investors.Main S & P 500 The index fell almost one-tenth (9.5%), the worst day since the 1987 crash. On this side of the Atlantic Ocean, the FTSE 100 crashed at one-ninth (10.9%), astonishing and shell-shocking investors.
3) March 23: FTSE 100 lows
As the coronavirus continued to spread, investors surrendered, sold, and ran towards the exit. As high-risk assets, equities and equities have been particularly hit. On March 23, the FTSE 100 fell to the 2020 closing price of 4,993.9 points. In just 83 days this year, Footsie lost nearly 2,550 points. That’s more than one-third (33.8%) of its value. This day was the point of greatest pessimism, and after all, the bottom of the market collapsed.
4) March 24: Fed gets rescued
The Federal Reserve Board cut its key interest rate by 0.5 percentage points on March 3. Unfortunately, this had little effect on calming the market, and the S & P 500 continued to decline. The Fed then fired a huge “big bazooka.” On March 23, Fed Chair Jerome Powell announced that the US central bank would buy unlimited government bonds and the first corporate bonds (corporate bonds). The next day (March 24th), the FTSE 100 jumped 9.1%, the highest rise of the day in 2020, as the bailout spread throughout the global market.
5) November 9: V-Day (Vaccine / Value Day)
[V-Dayisrememberedasahighlightof2020justasVEDayandVJDaywerecelebratedin1945November9USpharmaceuticalgiant[1945年にVEDayとVJDayが祝われたように、V-Dayは2020年のハイライトとして記憶されます。11月9日、米国の製薬大手Pfizer And its German partner BioNTech We have announced a vaccine that is more than 90% effective in preventing Covid-19 infection. Within a few days, we received news of two other effective vaccines. Therefore, November 9, 2020 became V-Day: Vaccine Day.
For me, V-Day is also an abbreviation for Value Day. This is because tech stocks plummeted Old-fashioned value share soars..In fact, one analyst said switching from growth stocks to value stocks on V-Day 8 standard deviation shift — Virtually a miracle of probability. As a result, the FTSE 100 surged 4.7% as investors scrambled to invest in economically sensitive sectors.
Today, on the last day of the tough year, the FTSE 100 finished at 6,460.52 and fell below 1,080 points (1/7 (14.3%)) in 2020. For example, adding 3.3% to the dividend will still result in a negative total index return. 11%. Let’s hope that 2021 will bring better returns to UK investors who have been hit by the shell shock. If they took advantage of the cheap stocks available this year, that should be!
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FTSE 100: These were the most important five days for UK investors in 2020
https://www.fool.co.uk/investing/2020/12/31/ftse-100-these-were-the-five-most-critical-days-for-uk-investors-in-2020/ FTSE 100: These were the most important five days for UK investors in 2020