Joshua Mahony MSTA
Scope Markets
Vaccination efforts will be key for airlines, with travel corridors likely to remain closed until enough of the population is protected. Meanwhile, questions remain over Biden’s spending plans, with his upcoming inauguration set to dominate proceedings.
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European markets lower.
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US remains key despite MLK holiday.
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Airlines hit hard as air corridors closures bring cancellations.
European markets have stumbled into a new week, with Biden’s stimulus promises doing little to help sentiment given doubts over just how much of that package will be approved in Congress. With the US markets closed for Martin Luther King day, today provides a gentle entry into a week that will be dominated by the US. While US trading activity will minimised today, speculation over whether Biden will be able to garner enough support to pass his full stimulus package remain a key concern for markets.
Airlines are on the back foot in early trade today, with easyJet leading the FTSE 100's losses. Despite a decline in UK Covid cases, the emergence of multiple highly contagious strains of the virus has dented any hope for a reopening in the coming months. The travel sector is now wholly reliant upon vaccination efforts, with the UK government decision to close all travel corridors likely to remain in place until the government has protected a sufficient proportion of the UK population. While the 2020 summer was a write-off for airlines, the hope is that the vaccination programme will provide a timely boost that will finally bring a wave of booking.
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