(Alliance News) - London's leading stock index crept closer to positive territory by Thursday midday after slipping to its lowest levels since the darkest days of lockdown earlier in the session amid a stimulus deal impasse in the US and surging Covid-19 infections in Europe.
The FTSE 100 was down just 2.27 points at 5,774.23 midday Thursday.
The mid-cap FTSE 250 index was up 96.51 points, or 0.5%, at 17,885.28. The AIM All-Share index was down 0.2% at 970.96.
The Cboe UK 100 index was flat at 573.64. The Cboe 250 was up 0.5% at 15,118.47, but the Cboe Small Companies was down marginally at 15,118.47.
"The chances of a stimulus plan being approved in the US ahead of the presidential election looks increasingly slim and this is putting pressure on equity markets," AJ Bell Investment Director Russ Mould said.
Mould noted the FTSE sunk to "around its lowest levels since the Spring amid a second wave of coronavirus, and all the economic hardship".
In mainland Europe, the CAC 40 index in Paris was fractionally lower and the DAX 30 in Frankfurt was down 0.1%.
Germany's blue-chip index was faced with a troubling consumer confidence report and a record number of Covid-19 cases in the once-model nation for virus control.
Data from market researchers GfK showed rising coronavirus infections have battered consumer confidence.
GfK said the index fell to minus 3.1 points for November, from minus 1.7 in October. The market expected a less dramatic slip to minus 2.8.
Germany also posted its largest day of infections since the pandemic began. It reported 11,287 new cases in 24 hours, soaring past the previous high of just over 7,800 set last Friday.
Meanwhile, Spain announced 16,973 cases, taking it to more than a million since its first diagnosis on January 31, in the Canary Islands.
The UK, with Europe's largest death toll of 44,000, said more than a million people in the north would be banned from mixing with other households. Ireland became the first European country to enter a full lockdown for the second time.
The pound was quoted at USD1.3108, but briefly slipped below USD1.31, offering a boost to the FTSE 100 which is stacked with globe-spanning dollar earners. The pound had fetched USD1.3134 at the London equities closed on Wednesday.
The euro stood at USD1.1829, down from USD1.1868 at the European equities close Wednesday.
On the London Stock Exchange, fund and shares investment platform Hargreaves Lansdown was the FTSE 100 best performer, up 4.0%, getting a positive read-across from a strong quarterly update by mid-cap rival AJ Bell.
Retail stock broker and online investment platform AJ Bell ended the year to September 30 with assets under administration of GBP56.5 billion, up 8% from GBP52.3 billion at the same point a year before.
Of this, AJ Bell's platform AuA closed the year at GBP49.7 billion from GBP44.9 billion, while non-platform assets fell to GBP6.8 billion from GBP7.4 billion.
The platform recorded GBP4.1 billion of net inflows, up 28% from GBP3.2 billion in financial 2019.
AJ Bell's total number of customers rose by 27% to 295,305, with the number of platform customers up 29% to 281,094.
AJ Bell's stock was up 1.3% at midday.
Rentokil climbed 3.8%, among the best performers on the FTSE 100. The pest control and hygiene firm posted a 4.3% revenue hike, or 8.5% in constant currency.
Revenue came in at GBP758.1 million during the period, with "all core categories delivering performance improvements".
The FTSE 100 firm reiterated its plan to pay a dividend for 2020 and said annual results will be at least "in line with expectations".
British Airways-owner International Consolidated Airlines Group was up 3.1% midday Thursday, despite slashing fourth-quarter capacity.
It said Thursday "recent overall bookings have not developed as previously expected" as Europe as imposed additional curbs in response to the second wave of the virus. Local lockdowns, extensions of quarantine requirements and a lack of pre-departure testing or air corridors have not been adopted as "quickly as anticipated" either.
"In response to the high uncertainty of the current environment, IAG now plans for capacity in fourth quarter 2020 to be no more than 30% compared to 2019. As a result, the group no longer expects to reach breakeven in terms of net cash flows from operating activities during fourth quarter 2020," IAG cautioned.
IAG back in September said it expected fourth-quarter capacity to decline by 60% compared to 2019, so Thursday's announcement puts that at 70%.
Total revenue in the third quarter ended September 30 fell 83% annually to EUR1.2 billion, and IAG swung to an operating loss of EUR1.3 billion from EUR1.4 billion profit a year earlier.
"It looked for a moment like the worst may be behind the airlines. As lockdowns were relaxed and the first wave subsided, many of us rushed to catch the last of the summer sun abroad. Optimism started to feel justified, and IAG planned to breakeven in Q4 as recently as 10 September. But the virus has returned with a vengeance and governments have started to impose increasingly draconian measures to fight it. IAG's bookings have been far below the level expected, and so the group's losses look set to deepen," Hargreaves Lansdown Equity Analyst William Ryder said.
Despite the bleak outlook, airline stocks were on the rise midday Thurday. easyJet climbed 2.8%, Ryanair was up 4.3% and Wizz Air rose 4.0%.
For 2020 so far, though, IAG shares remain down 60%, easyJet down 64%, Ryanair down 14% and Wizz Air down 11%.
West End property investor Shaftesbury was down 14%. It said it intends to raise GBP307 million via the issue of new shares to ensure financial flexibility to navigate the "unprecedented" challenges created by the Covid-19 pandemic.
Separately, Capital & Counties Properties said it will participate in the Shaftesbury fundraise by providing GBP65 million. Capital & Counties, the operator of London's Covent Garden market, will own a 25% stake in Shaftesbury. Its stock was down 9.8% midday Thursday.
Against the yen, the dollar was trading at JPY104.69, up from JPY104.53 at the London equities close Wednesday.
Brent oil was priced at USD42.06 a barrel, up from USD41.95. An ounce of gold fetched USD1,917.46, down from USD1,922.40.
UK Chancellor Rishi Sunak unveiled financial support package plans for firms gripped by local lockdown restrictions.
Addressing parliament late Thursday morning, Sunak said the package includes making the Job Support Scheme, which replaces the current furlough system, more generous.
There will also be grants of GBP2,100 available for firms in Tier 2 areas of England, primarily aimed at helping hospitality and leisure venues which have seen takings plummet due to a restrictions on households mixing.
In a move which could be worth more than GBP1 billion, these grants will also be available retrospectively for areas which have already been subject to restrictions, and come on top of higher levels of additional business support for areas moving into Tier 3.
Around 150,000 business in England could be eligible, the Treasury said.
Still the come on Thursday are US jobless claims at 1330 BST.
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