FTSE makes gains despite virus fears

The FTSE 100 pushed marginally higher in a subdued trading session as investors hoped stimulus from China can help to ease pressure from the spread of coronavirus.

London’s top flight closed 24.12 points higher at 7,433.25.

European equities nudged higher amid trading optimism despite concerns from analysts that the rapid spread of the virus could have a significant impact.

Craig Erlam, market analyst at Oanda, said: “The numbers we’re seeing are already pretty dreadful, to say the least – and they’re continuing to rise, with the death toll above 1,700. That’s more than double Sars and it’s still rising at a fairly rapid rate.”

He continued: “When you consider that only a few weeks ago people were fearing it could be as bad, the reality is really quite shocking.” Meanwhile sterling slipped ahead of a busy week for UK data, with economists expecting to see a slight drop in wage growth today, while inflation is expected to increase sharply tomorrow.

The value of the pound decreased 0.23 per cent versus the US dollar at £1.301 and slid 0.2 per cent against the euro at €1.200.

Elsewhere, traders had the day off across the Atlantic for the President’s Day holiday, helping to contribute to the calmness throughout the session.

In company news, shares in Just Eat Takeaway.com retreated after it said it was “confident” its multi-billion-pound merger will be cleared by the competition watchdog as it issued new company shares. Shares dipped 100p to 7,700p.