FTSE 100 closes around breakeven as PM Johnson presents a plan to ease the lockdown

FTSE 100 finished today’s session 0.06% in green after the buyers failed to sustain the morning gains. The UK PM Boris Johnson presented a multi-stage plan to loosen the lockdown measures and increase the economic and business activity. 

Fundamental analysis: Conditional plan presented

Boris Johnson held a much-awaited speech today to present a "conditional plan" to reopen society and relax lockdown measures. Following his speech, the Government released a plan “Our plan to rebuild”, that outlines the progress the country has made in fighting the coronavirus (COVID-19) outbreak.

In order to boost the business activity, Johnson urged workers to return to work if they cannot work from home, with the Government hoping that workers in construction and manufacturing industries return as soon as possible. 

As of Wednesday, the residents can spend unlimited amounts of time outdoors while shops and sporting events will remain closed until June 01. Primary schools will partially reopen on June 01, the PM said. 

Johnson’s speech received a public backlash, with critics calling the much-awaited announcement as “vague”.

Other analysts are calling for caution due to the risk of a second wave of infections as lockdowns ease.

Technical analysis: Optimism quickly fades

The buyers pushed the FTSE 100 higher during Johnson’s speech earlier this morning, however that optimism quickly faded as the next hourly session was used to erase those gains. 

A move lower pushed the price action outside of the ascending channel, which is likely to invite more selling pressure tomorrow. The FTSE 100 is now more exposed to the pull back to 5,800 after it failed to keep its head above 6,000.

Summary

FTSE 100 closed the day barely in the positive territory despite the earlier gains as the PM Johnson unveiled a multi-stage plan to relax lockdown measures.