London markets fell today after the Easter holiday amid forecasts for the coronavirus lockdown to continue into next month.
The FTSE 100 index of Britain’s leading companies was trading down 22 points or 0.38 per cent at 5,820 by 11am today.
The Government said there would be no easing of the lockdown this week as the death toll surpassed 11,000, with reports that it could be extended until May 7.
The markets were also hit over concerns that the economy could shrink by up to 30 per cent this quarter, while shares in British American Tobacco slumped amid reports of a possible US criminal probe.
But stock markets elsewhere in Europe extended last week’s strong run on signs some countries were letting businesses get back to work. The DAX in Germany rose 1.05 per cent to 10,676, while the CAC 40 in France went up 0.14 per cent to 4,513.
UK shares had last week logged their best week since 2009, driven by hopes of the coronavirus cases easing in hard-hit parts of Europe and the US.
St Paul’s Cathedral is pictured at sunrise in front of City skyscrapers in London at sunrise today
The FTSE 100 has recovered nearly 19 per cent from its March 16 low, but is still down about 24 per cent from its January peak.
Today, BAT shares shed 5.9 per cent after a report that the company is under a criminal investigation by US regulators over suspected sanctions-busting.
Meanwhile cruise operator Carnival and hotels group Intercontinental fell more than 5 per cent as they battle with plunging travel demand and worldwide lockdown.
The FTSE had initially risen by 38 points or 0.65 per cent to 5,881 in early trading today as it reacted to some as some countries partly lifting lockdown restrictions.
Economic analysts said the slowdown in new cases and raft of stimulus measures were helping to cut some of the risks that had threatened a much deeper downturn.
TODAY: The FTSE 100 index was trading down 27 points or 0.46 per cent at 5,816 by 10.30am
Market sentiment in some regions was also boosted by China ‘s trade data results coming in better than expected.
Its exports fell last month by 6.6 per cent year-on-year, smaller than the expected 14 per cent fall. Imports slipped 0.9 per cent instead of the expected 9.5 per cent drop.
Oxford Economics said in a note: ‘Looking ahead, production constraints should no longer be an issue as economic life in China returns.’
Chinese shares strengthened today with the blue-chip index up 1.2 per cent. Australian shares were up 1.7 per cent while Japan’s Nikkei gained 2.8 per cent.
Investors around the world are now eyeing the easing of virus-related curbs in some regions for further trading cues.
PAST FORTNIGHT: The FTSE has overcome some coronavirus-related losses in recent weeks
In Europe, thousands of shops across Austria are set to reopen today, while Spain recorded its smallest proportional daily rise in the number of deaths and new infections since early March and let some businesses get back to work yesterday.
In the US, which has recorded the highest number of casualties from the virus in the world, President Donald Trump said his administration was close to completing a plan to re-open the economy.
In a sign of worries about struggling global demand, oil prices barely reacted to a deal to cut output by a record amount of nearly 10 per cent of world supply.
US crude was up just 0.8 per cent at $22.59 a barrel, well under its January peak of $63.27. Brent rose 1 per cent to $32.1 a barrel.
People wearing face masks walk past a board outside the Hong Kong Stock Exchange today
Skittish market sentiment helped gold prices cling to highs not seen in more than seven years at $1,720.1 an ounce.
Oxford Economics said in a note: ‘Looking ahead, production constraints should no longer be an issue as economic life in China returns.’
Chinese shares strengthened today with the blue-chip index up 1.2 per cent. Australian shares were up 1.7 per cent while Japan’s Nikkei gained 2.8 per cent.
Investors around the world are now eyeing the easing of virus-related curbs in some regions for further trading cues.
In Europe, thousands of shops across Austria are set to reopen today, while Spain recorded its smallest proportional daily rise in the number of deaths and new infections since early March and let some businesses get back to work yesterday.
In the US, which has recorded the highest number of casualties from the virus in the world, President Donald Trump said his administration was close to completing a plan to re-open the economy.
In a sign of worries about struggling global demand, oil prices barely reacted to a deal to cut output by a record amount of nearly 10 per cent of world supply.
US crude was up just 0.8 per cent at $22.59 a barrel, well under its January peak of $63.27. Brent rose 1 per cent to $32.1 a barrel.
Skittish market sentiment helped gold prices cling to highs not seen in more than seven years at $1,720.1 an ounce.