London Markets Spooked today21 Dec 2020 09:08
LONDON MARKET EARLY CALL: New Virus Variant In England Spooks Markets(Alliance News) - Stocks in London are set to open lower on Monday as a new Covid-19 variant led ...
21 December 2020
(Alliance News) - Stocks in London are set to open lower on Monday as a new Covid-19 variant led to further restrictions in the UK and travel bans from Europe.
IG says futures indicate the FTSE 100 index of large-caps to open 63.28 points lower, or 1.0%, at 6,465.90 on Monday. The FTSE 100 closed down 21.88 points, or 0.3%, at 6,529.18 on Friday.
The lower open in London comes as things have gone from "bad to worse" in terms of virus restrictions in the UK, said CMC Markets's David Madden.
"London and large swathes of south east England have entered Tier 4. The Scottish government is advising people not to enter the country, while Wales has heightened restrictions too. Rising case numbers because of the new Covid-19 strain brought about the new measures," said Madden.
He added: "Even though yesterday was originally cited as the deadline for UK-EU trade talks, it is understood that differences still remain and that discussions will continue today. Given how things have gone so far, it was hardly a surprise. This comes at a time when many countries in mainland Europe are also struggling to keep a lid on their own situation – a number of countries have extended their lockdowns into mid-January. The airline sector is likely to be in focus today for all the wrong reasons."