FTSE nudges higher on quiet day for stock market

SHARES in companies with a major presence in Manchester felt the squeeze on Tuesday, as the Government failed to reach a deal with local politicians over support for businesses during Covid-19 restrictions.

In what was otherwise a mildly positive day for London markets, AJ Bell and PZ Cussons, whose headquarters are in the city, dropped by 2.3% and 1.6%.

Meanwhile, AstraZeneca, which has a big factory in Manchester, saw its shares fall back 0.5%.

The FTSE 100 rose slightly yesterday, gaining 4.57 points to end the day on 5,889.22, a 0.1% rise.

“Overall, there hasn’t been too much excitement in the markets today,” said CMC Markets analyst David Madden.

“Restrictions in some countries, because of the health crisis, are tighter and with the way things are going in terms of the number of new coronavirus cases, there are fears that further restrictions could be in the offing.”

London’s top index was pulled higher by

British Airways owner IAG, which saw a growth spurt after the news that passengers flying to Hong Kong and Italy can get onehour virus tests at Heathrow Airport. The countries require passengers to test themselves before departing the country of travel.

IAG’s shares jumped by 6.9% on Tuesday as a result.

On the other side of the English Channel the Cac 40 in Paris was flat and the Dax in Frankfurt dropped by 0.9%.

Across the Atlantic the S&P 500 and Dow Jones were both up by around half a per cent by the time markets closed in Europe.

However, Spreadex analyst Connor Campbell said that US politics could affect markets in New York later in the day.

“More volatility could still be expected in the run-up to Nancy Pelosi’s stimulus deadline this evening,” he said.

“That is unless investors are now comfortable with the assumption a deal isn’t getting done this side of the election, based on Joe Biden’s consistent lead in the polls.”

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