Virus woes fail to halt steady market rise
Stock markets pushed ahead despite lingering unease about a possible fresh spike in coronavirus infections as investors become more accepting of the new normal.
The benchmark FTSE 100 index of Britain’s biggest companies gained 102.84 points or 1.7 per cent to close at 6,104.73.
Markets have recovered much of this year’s losses despite rising infection numbers in the likes of the US and Brazil.
In a report, Mizuho Bank said the global economy “offers few reasons to be upbeat”. If a “second wave” of infections hits, renewed curbs on business and travel “could hamper the trajectory of economic recovery,” it noted.
In company news in London, pub chain JD Wetherspoon warned that the coronavirus crisis will drag it to an annual loss after sales slid following its reopening last month.
The pub chain told investors that like-forlike bar and food sales were down 16.9 per cent for the 44 days to 16 August, compared to the same period last year.
The group said it now reopened 844 of its 873 pubs, after shutting all sites in March as a result of the pandemic.
Outspoken founder Tim Martin said: “Risk cannot be eliminated completely in pubs, but sensible social distancing and hygiene policies, combined with continued assistance and cooperation from the authorities, should minimise it.”
Russ Mould, investment director at AJ Bell, said: “It’s understandable that Wetherspoon is making a big song and dance about how it is following social distancing guidelines as it wants the public to feel that its pubs are safe to visit.
“Guidance that it will report a loss in its most recent financial year won’t be a surprise given the considerable disruption to trading.
“What really matters now is how the business fares without the sales incentive and if it can avoid pushing up prices to help claw back some of the lost revenue from earlier this year.”
Shares in the company slipped 30p to 944p.
Meanwhile, Mike Ashley’s Frasers Group said it will save “a number of jobs” after buying parts of DW Sports for at least £37 million. Frasers dipped 1.6p to 344.8p.