FTSE 100 edges higher after Covid sparks sharp sell-off
The FTSE 100 rose slightly this morning after tumbling three per cent yesterday as investors braced themselves for a tough winter of rising coronavirus cases and new government restrictions.
London’s main stock index climbed was last up 0.3 per cent at 5,600 points. Despite the slight gain, the index remained at around a six-month low.
Read more: US stocks tumble and oil drops after disastrous FTSE 100 day
Markets were rocked yesterday as investors took fright at rising coronavirus cases and the possibility of new lockdowns. Economists have warned that strict new rules – although they may be necessary to tame the virus – would derail the fragile economic recovery.
The FTSE plunged three per cent to its lowest level since April. Wall Street stocks tumbled around 3.5 per cent, while European stocks slid to five-month lows.
“It’s been a pretty sobering week so far for life as we knew it and for markets,” said Jim Reid of Deutsche Bank.
“Risk assets buckled yesterday under the weight off fresh restrictions, especially those in the two largest European economies.”
France yesterday night announced it would go back into a second nationwide lockdown starting this week. And Germany will impose a month-long “circuit-break” lockdown to try to tame the spread of cases.
BT lifts FTSE 100 as European stocks edge higher
However, both countries’ stock indices rose this morning as investors dusted themselves off. Germany’s Dax was up 0.6 per cent and France’s CAC 40 managed a 0.4 per cent gain. The Europe-wide Stoxx 600 climbed 0.3 per cent.
US stocks were set to open higher, according to futures prices on Wall Street.
Stocks moved broadly lower in Asia overnight. But China’s SSE composite index eked out a 0.1 per cent gain.
On the FTSE 100, BT (BT.A) was the biggest riser with a six per cent gain. It said its profit fell a fifth in an update this morning but is boosted its earning guidance for the year.
Shell (RDSA) shares rose strongly after the oil giant returned to profit in the third quarter after historic losses.