London open: Stocks nudge lower as investors await news on Covid tiers
(Sharecast News) - London stocks nudged lower in early trade on Thursday as investors awaited details of the new three-tier system that will come into effect next week once England's lockdown ends.
At 0840 GMT, the FTSE was down 0.2% at 6,376.33, with a relatively quiet session expected as US markets will be closed for Thanksgiving.
Later in the day, Health Secretary Matt Hancock is due to set out plans in the Commons for the new tier system in England, with most of the nation expected to be placed in the two toughest tiers of Covid-19 restrictions from next Wednesday. London is expected to be put into tier two.
Spreadex analyst Connor Campbell said: "Based on the European open, it looks like the markets are taking a pause from anything too serious, unable to really move without US guidance.
"Without any other distractions, it's hard to muster much positive sentiment in the face of the largest daily number of Covid-19 deaths worldwide since the pandemic began.
"Hardly the most interesting session, and one likely to remain so in the absence of the Thanksgiving-celebrating American markets. A Brexit deal breakthrough could be the thing to shake investors out of their nap; ditto the region-by-region Tier designations in the UK, which could have a major impact on hospitality and leisure stocks."
Market participants were also digesting news that German Chancellor Angela Merkel has decided to extend the country's 'lockdown lite' until 20 December.
CMC Markets analyst Michael Hewson said: "The decision by the German government to go down this road suggests that the coming winter is likely to be a long hard slog for businesses all over Europe, as populations tire of having their freedoms restricted, and concerns grow about the prospect of much longer term economic damage."
In equity markets, ex-dividend stocks were a drag, with Imperial Brands, Persimmon, Land Securities, CMC Markets and Bellway all in the frame.
Bodycote was under the cosh after announcing another restructuring and saying it expects the civil aerospace market to remain near the current low levels for at least the next 18 months.
On the upside, sales, marketing and support services group DCC was sitting pretty at the top of the FTSE 100 after an upgrade to 'overweight' at Morgan Stanley.
Soft drinks maker Britvic was also in the black after it reported a small rise in full-year pre-tax profit as lower costs helped to offset a revenue decline, as its out-of-home segment was dented by the Covid-19 crisis.
Market Movers
FTSE 100 (UKX) 6,376.33 -0.23%
FTSE 250 (MCX) 19,485.27 -0.43%
techMARK (TASX) 3,940.96 0.16%
FTSE 100 - Risers
DCC (DCC) 5,862.00p 3.68%
Flutter Entertainment (FLTR) 13,750.00p 3.38%
Polymetal International (POLY) 1,608.00p 2.88%
Reckitt Benckiser Group (RB.) 6,610.00p 2.58%
Fresnillo (FRES) 1,109.50p 2.02%
Unilever (ULVR) 4,643.00p 1.82%
Hikma Pharmaceuticals (HIK) 2,643.00p 1.58%
Ocado Group (OCDO) 2,192.00p 1.48%
Rightmove (RMV) 607.60p 1.37%
London Stock Exchange Group (LSE) 7,830.00p 1.35%
FTSE 100 - Fallers
Imperial Brands (IMB) 1,419.50p -4.80%
Persimmon (PSN) 2,722.00p -3.95%
Lloyds Banking Group (LLOY) 36.90p -3.23%
Land Securities Group (LAND) 675.50p -2.65%
British Land Company (BLND) 473.80p -2.47%
NATWEST GROUP PLC ORD 100P (NWG) 159.50p -2.42%
Legal & General Group (LGEN) 256.00p -2.25%
International Consolidated Airlines Group SA (CDI) (IAG) 167.00p -2.20%
Rolls-Royce Holdings (RR.) 108.60p -2.07%
CRH (CRH) 3,102.00p -2.05%
FTSE 250 - Risers
Petropavlovsk (POG) 26.90p 4.06%
FDM Group (Holdings) (FDM) 1,080.00p 4.05%
FirstGroup (FGP) 65.60p 3.88%
Britvic (BVIC) 833.00p 2.78%
Hochschild Mining (HOC) 220.20p 2.71%
Centamin (DI) (CEY) 112.50p 1.99%
Energean (ENOG) 730.00p 1.94%
ICG Enterprise Trust (ICGT) 912.00p 1.79%
BlackRock World Mining Trust (BRWM) 453.00p 1.68%
Allianz Technology Trust (ATT) 2,735.00p 1.67%
FTSE 250 - Fallers
Virgin Money UK (VMUK) 129.45p -7.54%
Bodycote (BOY) 716.50p -6.58%
Capita (CPI) 44.45p -4.00%
CMC Markets (CMCX) 392.50p -3.44%
Brewin Dolphin Holdings (BRW) 270.00p -3.23%
4Imprint Group (FOUR) 2,380.00p -3.05%
Pets at Home Group (PETS) 394.80p -2.81%
Bellway (BWY) 2,927.00p -2.79%
Cineworld Group (CINE) 53.52p -2.69%
WH Smith (SMWH) 1,462.00p -2.47%
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