Pound’s losses make for FTSE’S gains
Optimism over the easing of lockdowns across the globe faded as traders were left cautious over the potential for a second coronavirus peak.
However, the London markets nudged higher as multinational firms were bolstered by weakness in the value of the pound.
The FTSE 100 closed 3.75 points higher at 5,939.73p.
The index lifted slightly after the Prime Minister provided more detail over his “road map” for phasing out the coronavirus lockdown, despite worries that the message had caused confusion. Spreadex analyst Connor Campbell said: “The FTSE was something of an outlier… despite the mess made by Boris Johnson’s government in trying to explain what happens next.”
The major European markets fell into the red amid fears that a second wave of infection could particularly hamper economies.
David Madden, market analyst at CMC Markets UK, said: “The easing of lockdowns has turned out to be a double-edged sword, as the move towards reopening economies boosted equities recently, but now there are fears that it might set the countries back in terms of the health crisis.
“Reports from South Korea and Germany show that new cases have jumped amid the easing of restrictions, and that’s why traders are dumping stocks today.
“When it comes to reopening the economy, there is a fear in the markets that it might be a case of one step forward and two steps backwards.”
Sterling slipped as traders continued to predict that it will be months before the UK begins to properly reopen its economy.
The value of the pound fell 0.58 per cent versus the US dollar at $1.232 and was down 0.4 per cent against the euro at €1.14.
Technology-oriented businesses, such as Ocado and Just Eat Takeaway, dominated the leaders in the FTSE 100.
In company news, cycling and car accessories retailer Halfords jumped after the Prime Minister encouraged workers to cycle to work and avoid public transport. Shares closed up 36.8p to 188.2p.
Elsewhere, British Airways owner IAG fell after boss Willie Walsh told MPS that restructuring will be carried out across the group. Shares closed 5.5p lower at 184.95p.