FTSE 100 sheds points after PM announces new Covid restrictions

The FTSE 100 has given back some of its gains following a strong week for London’s top shares, after new Covid restrictions were announced for England on Wednesday evening.

The index dipped by 15.79 points, or 0.2%, reaching 7,321.26.

But it comes after a strong week from the top stocks and the index went into today nearly 3% higher than at the same point seven days ago.

“Stocks throughout the US and Europe have struggled to maintain their upward trajectory today, as traders struggle with the dual effects of near-term economic restrictions and a likely ramp-up in monetary tightening in the coming months,” said Joshua Mahony, senior market analyst at IG.

“The actions taken by the UK government may be considered restrictive to some, but they are actually relatively light given the incredible transmission levels of this current variant.

“The decision to avoid hard-line actions akin to those seen last year are borne of the growing confidence that Omicron will be significantly less deadly than its predecessors.

“Thus, while the UK economy may see consumer activity somewhat subdued compared with an ordinary December, investors should take solace in the possibility that we could soon see the economy firing on all cylinders once again.”

In Europe, investors also appeared worried, sending Germany’s Dax index down 0.3%, while the Cac 40 in Paris lost 0.1%.

In the US, as markets were closing down in Europe, the main two indexes were also struggling. The S&P 500 was trading down 0.3%, while the Dow Jones had declined by 0.1%.

In currency markets, sterling lost 0.1% against two major rivals. One pound could buy 1.3191 dollars or 1.1695 euros.

The biggest risers on the FTSE 100 included BT Group, up 4.8p at 176.65p; B&M, up 14.2p at 644p; and Intertek, up 96p at 5,742p. The biggest fallers included Rolls-royce, down 4.34p at 124.3p; IAG, down 4.74p at 138.02p; and Entain, down 36.5p at 1,683.5p.

Stocks struggled to maintain their upward trajectory