FTSE fails to be hampered by rule update

The London markets rebounded from their worst day for three months, despite the Prime Minister confirming a tightening of coronavirus restrictions.

Markets opened strongly in the morning and finished higher, despite a slight retreat, with Boris Johnson providing no surprises for traders in his announcement to Parliament. The FTSE 100 closed 25.17 points lower at 5,829.46. David Madden, market analyst at CMC Markets, said: “The London market gained ground in the wake of the update as the rules weren’t as tough as some originally feared.

“The restrictions have more to do with social distancing and health precautions, and the economic impact is unlikely to be as bad as initially thought.

“European stocks took a beating yesterday and it seems the bargain hunters have been out in force today.”

Across the Atlantic, the Dow Jones also opened higher but was less keen to climb than its European counterparts as the impending election and concerns over tech stocks continued to drive reticence among investors.

Meanwhile, sterling dipped again as the dollar extended its recent bullish spell.

The pound fell by 1.46 per cent versus the US dollar at $1.272 and was down 0.35 per cent against the euro at €1.087.

Pub sand hospitality firms were broadly mixed, with Mitch el ls& Butler sand Marston’s shares closing notably higher, while London-focused Young’s saw shares dip after the PM advised people to work from home where possible.

In company news, Cumbernauld-based Irn-bru manufacturer AG Barr jumped in value after it was buoyed by major cost-cutting over the past six months.

It saw profits dip to £5.1 million for the halfyear but ahead of initial forecasts, helping shares to move 57.5p higher to 430p.

Meanwhile, Premier Inn owner Whitbread closed 60p lower at 2,049p after it said 6,000 jobs will be cut following a slump in demand due to Covid-19.

Travel giant Tui dipped after it cut its winter capacit y due to changing restrictions and reported an unprecedented 83 per cent slump in summer bookings.

It ended the day down 2.3p to 268.7p.