Last checked at 
(Alliance News) - Stocks in London ended mixed on Monday with investors grappling with weaker than expected Chinese economic growth figures and concerns over the reimposing of national lockdowns, as global Covid-19 cases topped 40 million.
The FTSE 100 index closed down 34.93 points, or 0.6%, at 5,884.65. The FTSE 250 ended up 43.17 points, or 0.2%, at 17,866.08, and the AIM All-Share closed down 2.86 points, or 0.3%, at 974.86.
The Cboe UK 100 ended down 0.6% at 585.18, the Cboe 250 closed up 0.4% at 15,085.29, and the Cboe Small Companies ended flat at 9,392.69.
In Paris, the CAC 40 ended down 0.2%, while the DAX 30 in Frankfurt ended down 0.4%.
China's economy grew 4.9% on-year in the third quarter, sustaining its rebound from bruising virus lockdowns and moving closer to pre-pandemic levels, official data showed.
However, the world's second-largest economy grew slightly below expectations in the July to September period, National Bureau of Statistics data showed, which warned of uncertainty ahead as "the international environment is still complicated".
Meanwhile, Wales will impose a full "firebreak" lockdown for two weeks from Friday to try to reduce a soaring number of new coronavirus cases, First Minister Mark Drakeford said.
Under the new rules, people must stay at home, except for very limited purposes, such as for exercise, and work from home wherever possible. Cases have surged across Wales over recent weeks, despite tightened local restrictions in various locations, with the seven-day rolling incidence rate standing at more than 130 cases per 100,000 people.
In addition, a raft of European nations including Italy and Belgium took urgent new measures on Monday to combat a second wave of coronavirus infections as the worldwide caseload topped 40 million.
In Belgium, where hospitalisations rose 100% in just the last week, bars and restaurants were closed on Monday for a month and a curfew will be reinforced overnight. Further, Italy also announced fresh curbs including earlier closures for bars and restaurants and a push to increase working from home.
"Markets have kick-started the week in indecisive fashion, with a disappointing Chinese third quarter growth figure laying the groundwork for a less than convincing session. With so many varying factors influencing market sentiment, it comes as no surprise to see confusion amongst the trading community. With traders having to weigh up the importance of Brexit concerns, coronavirus lockdowns, the US election, and the Chinese recovery, the indecision seen today could be indicative of the week ahead," said IG Group's Josh Mahony.
On the London Stock Exchange, British Airways parent International Consolidated Airlines ended the best performer, up 4.4%. The new boss of British Airways has demanded that the self-isolation requirement for international arrivals is replaced by Covid-19 tests before departure.
Sean Doyle - who was appointed BA chief executive last week - told the Airlines 2050 summit of industry leaders that "we do not believe quarantine is the solution".
"It's our view that even if that quarantine period is reduced to seven days, people won't travel here and the UK will get left behind," Doyle said.
Further, Transport Secretary Grant Shapps told the conference the UK government is developing a "test and release regime" which will still involve a quarantine period of at least a week.
Midcap peer easyJet ended up 4.8%, while Irish carrier Ryanair Holdings closed up 4.4%.
Land Securities closed up 1.3% after the property company said it will sell investments in "subscale sectors" as part of a new strategy to position the business for "growth".
Peer British Land ended up 2.1% in a positive read-across.
The property developer and investor, ahead of its virtual capital markets day on Monday, said its new strategy will see Landsec "realise and recycle capital" from the sale of properties in the hotels, leisure and retail parks space, three assets battered by Covid-19. The Bluewater shopping centre owner added a review has found that "certain elements of our portfolio are subscale".
On the whole however, LandSec painted an optimistic picture about its retail assets, despite its regional shopping centres being among the worst-hit by the pandemic. Landsec also was bullish about the "quality of the central London portfolio", 64% of its property assets by value.
On AIM, online fashion retailer boohoo Group ended a massive 20% lower following negative press reports over the weekend.
Citing two people familiar with the matter, the Financial Times on Friday reported PwC has signalled its intention to quit as boohoo's auditor. In response, the fast fashion company said on Monday that PwC "remains its auditor at this time" but has begun a tender for its replacement.
Separately on Sunday, the Sunday Times reported the National Crime Agency is investigating companies that supply boohoo, over suspicions of money laundering and VAT fraud. The agency is looking into the Leicester textile industry, with NCA officials saying they have evidence from whistleblowers in the city's garment factories, who provided documents that detail alleged money laundering and VAT fraud.
"We remain concerned about where this will all end up with National Crime Agency scrutiny, potential HMRC investigation and vocal MPs in Leicester, who are all now firmly interested in working practices and have Boohoo firmly in their line of sight. The change of auditor is not helpful as the reputational headlines are damaging and this poses a challenge for institutional and wealth managers where both corporate social responsibility and ESG factors are taken into account," said analysts at Shore Capital.
The pound was quoted at USD1.3000 at the London equities close, up sharply from USD1.2924 at the London equities close Friday, on Brexit-related optimism.
The UK government said Monday there was no point resuming Brexit talks with the EU without compromise from Brussels to recognise Britain's new-found sovereignty from next year.
"There's no point in negotiations proceeding as long as the EU sticks with this position. Such talks will be meaningless, and will take us no nearer to finding a workable solution," senior minister Michael Gove told parliament.
However, Gove welcomed a new commitment from EU negotiator Michel Barnier to enshrine any talks in a legal document, after Britain had accused Brussels of dragging its feet in the countdown to a potential "no deal" separation at the end of this year.
"I confirmed that the EU remains available to intensify talks in London this week, on all subjects, and based on legal texts. We now wait for the UK's reaction," Barnier tweeted as Gove was speaking, following fresh talks with his UK counterpart David Frost.
"Both sides eased their demands, trying to avoid the hardest possible scenario. The markets are hoping to see a breakthrough in negotiations 'five minutes to midnight', as was often the case with Brexit. This news is positive not only for the pound but also for the euro, but the British economy is much more dependent on the parameters of the foreign trade transaction, so it reacts much more acutely to both positive and negative news," analysts at FXPro said.
The euro stood at USD1.1785 at the European equities close, up from USD1.1718 late Friday. Against the yen, the dollar was trading at JPY105.45 in London, flat from JPY105.40 late Friday.
Stocks in New York were lower at the London equities close as the clock ticks down for Washington to overcome its partisan differences and pass a new coronavirus relief aid package before November's presidential election.
The DJIA was down 0.1%, the S&P 500 index down 0.2% and the Nasdaq Composite down 0.4%.
Democrats and Republicans in Washington are in the final two weeks of negotiations before the November 3 presidential election on new spending measures to boost the US economy after the coronavirus pandemic caused grievous damage earlier in the year.
President Donald Trump's administration has proposed a USD1.8 trillion package, while Democrats in the House of Representatives have approved a USD2.2 trillion measure.
However, Senate Majority Leader Mitch McConnell said again last week that he prefers a narrowly tailored measure - which Democrats have rejected - and signalled he would not support the Trump administration's push for a massive package.
Brent oil was quoted at USD42.92 a barrel at the London equities close, marginally lower from USD43.00 at the close Friday.
Gold was trading at USD1,908.70 an ounce at the London equities close, higher against USD1,900.51 late Friday.
The economic events calendar on Tuesday has Germany producer prices at 0700 BST and eurozone current account figures at 0900 BST.
The UK corporate calendar Tuesday has annual results from housebuilder Bellway and from IT infrastructure products provider Softcat. Household goods firm Reckitt Benckiser reports third-quarter earnings.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
