FTSE falls as England starts to reopen
London’s main market fell 0.4 per cent this morning despite positive sentiment about England starting to open up following the coronavirus lockdown.
The FTSE 100 was down 0.4 per cent while the FTSE 250 fared slightly better, down a more moderate 0.2 per cent.
For most, today marks the first day of 2021 that non-essential retail stores are allowed to open in England, along with pub gardens and gyms.
Michael Hewson, chief market analyst at CMC Markets UK, said: “In a week that saw the FTSE100 close at its best levels in over a year, optimism over this week’s economic reopening of outdoor pubs, shops, gyms and hairdressers, appears to be being tempered by concerns over next month’s local and regional elections, and in particular how well the Scottish National Party might do in the context of whether they get a mandate from Scottish voters to hold another independence referendum.
“These concerns seem somewhat premature and overstated at this point in time, however these undercurrents could well act as a bit of a handbrake on any upside for UK stocks, as well as the pound over the next few weeks.”
Winners & losers
Out of the gate this morning JD Sports was off to a flying start, up five per cent just 10 minutes after the market open.
Manufacturer Spirax Sarco Engineering came in just behind JD Sports, up nearly 2.7 per cent, followed by education company Pearson, up 2.55 per cent.
The worst performer was industrial group Johnson Matthey, which just last week announced it was carrying out a “strategic review” of its £2bn health business in order to maximise shareholder value.
Shell A and B came next, down 2.4 and nearly 2.6 per cent respectively.
Further afield
Asian shares faltered on Monday as anxious investors wait to see if US earnings can justify sky-high valuations, while a rally in bonds could be tested by what should be very strong readings for US inflation and retail sales this week.
MSCI’s broadest index of Asia-Pacific shares outside Japan was off 1.1 per cent in slow trade. Tokyo’s Nikkei edged down 0.6 per cent, while South Korean stocks were near flat.
The Nifty 50 index slid 2.4 per cent as India overtook Brazil to become the country with the second most COVID-19 cases.
Chinese blue chips lost 1.5 per cent ahead of a rush of economic figures from the country.
The pan-European STOXX 600 index slipped 0.1 per cent by around 7am, following Asian markets into the red as investors waited to see if U.S. earnings can justify sky-high valuations.
There were some concerns as Covid-19 cases continued to surge globally.