Covid curbs in Europe give markets poor ending to disappointing week

London’s markets finished the week with their fifth consecutive day of decline as concerns over Covid curbs in Europe weighed on investors across the Continent.

Travel and leisure stocks were impacted by the downturn in sentiment, although some firms which have broadly benefited from Covid, such as health, saw stocks take a much-needed boost.

The FTSE 100 closed 32.39 points, or 0.45%, lower yesterday at 7,223.57.

Michael Hewson, chief market analyst at CMC Markets, said: “After four days of declines it finally looked like the FTSE 100 might finish the week on the up, but unfortunately the news flow from Europe had other ideas, after Austria imposed another lockdown as well as mandating compulsory vaccine uptake for its population from February.

“With Germany also imposing new restrictions, any thoughts that vaccines would offer a way to a more normal Christmas period appear to have gone up in smoke for now, in Europe at least.

“Markets haven’t reacted well to today’s news and we’ve seen the travel and leisure sector get a renewed clobbering.”

The German Dax decreased by 0.29% and the French Cac dropped by 0.34%.

Across the Atlantic, the US markets were more mixed with the Dow dipping again but investors bought into the tech-focused Nasdaq.

Meanwhile, sterling continued its strong week to push 0.11% higher versus the US dollar at 1.347, and increase 0.1% against the euro at 1.190.

In company news, Ocado was easily the strongest performer on the FTSE 100 after it was buoyed by a note from Deutsche Bank raising the possibility Marks & Spencer could look to buy the other 50% of its retail joint venture with Ocado.

The biggest risers on the FTSE 100 were Ocado, up 121.5p at 1,897.5p, and Segro, up 37.5p at 1,402p. Biggest fallers were Compass, down 81.5p at 1,479.5p, and Kingfisher, down 14.7p at 322.5p.

We’ve seen the travel and leisure sector get a renewed clobbering