FTSE Closes 1.2 percent lower after coronavirus treatment options remain doubtful
FTSE closed the week lower and Friday close was 1.2 percent lower compared to Thursday. Gilead Sciences has been working on a treatment option for coronavirus but the company announced that the drug trials were inconclusive. Global market sentiment was down after reports suggested that remdesivir from Gilead Sciences failed to help severely ill patients. This was the first trial conducted by Gilead but the company hasn’t run out of options.
European markets are facing another challenge with leaders of main European economies not able to reach a consensus about bringing back the economy on track after coronavirus comes under control. Italy, Spain, Portugal, Greece and France will need much bigger effort to deal with the impact of coronavirus. EU summit unsurprisingly ended with no real progress on a recovery fund that would help rebuild the shattered economies of the weaker European economies.
There was no real detail on how much of any new fund was likely to be made up of loans and grants, and more importantly how big it was likely to be.
FTSE stocks from travel, hotels, services sector have been facing tough times as investors look for reducing loss to their portfolio. Investors are also concerned about reducing valuations of their mutual fund holdings.
Germany is about to choose a leader for CDP but that has been delayed amid coronavirus. Overall, the sentiment has turned negative once again unless there is positive news on fight against COVID-19.