London pre-open: Stocks seen lower amid reports of tougher restrictions

Sharecast
Pre-open Market Report
06:37, 11th January 2021

(Sharecast News) - London stocks were set to fall at the open on Monday amid reports that Covid-19 restrictions in England are set to get even tougher.
The FTSE 100 was called to open 20 points lower at 6,853.

Investors will be digesting reports over the weekend that the government is considering tightening restrictions even further, with masks outside, curfews and even a ban on people leaving the house more than once a week said to have been discussed.

Political events in the US were also likely to be in focus.

Naeem Aslam, chief market analyst at Ava Trade, said: "Lawmakers have started the process to impeach President Trump, but the fact is that there is not enough time left for this process to see the light at the end of this tunnel.

"The impeachment proceedings are likely to shape up in the House of Representatives, and this means more volatility for the US stock market. These small bumps may not be able to distract investors too much as their focus is beyond these events."

In corporate news, budget airline easyJet has strengthened its balance sheet by signing a new five-year term loan facility of $1.87bn (£1.4bn). The carrier said the loan was underwritten by a syndicate of banks and supported by a partial guarantee from the UK government's Export Development Guarantee scheme.

British Land said 73% of its retail stores were open before Christmas and 32% were trading under the latest national lockdown.

On 7 January it had collected 71% of rent due for payment in the December quarter comprising 99% of office rents and 46% of retail rents.

Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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