London midday: Stocks maintain gains despite weakness in travel sector

London stocks were still firmly in the black by midday on Wednesday despite disappointing news on the Covid vaccine front, helped along by a weaker pound.

The FTSE 100 was up 0.8% at 5,990.93, while sterling was down 0.3% against the dollar at 1.2939, as the UK was set to publish its new internal market bill, which will set out how trade operates across the UK after Brexit.

Sterling was also under pressure following confirmation that the government plans to backtrack on the Brexit agreement on Northern Ireland in a move that will break international law.

A weaker pound tends to benefit the top-flight index, as around 70% of its constituents derive most of their earnings from overseas.

This helped to offset news that AstraZeneca and Oxford University's Covid-19 vaccine trial has been put on hold after a participant in the UK had a suspected adverse reaction.

In equity markets, dollar-earners such as Ashtead, BP, Shell, British American Tobacco and Unilever all gained amid sterling weakness.

Avon Rubber rallied after announcing the acquisition of US-based military helmet maker Team Wendy for $130m (£100m), as it maintained full-year guidance.

On the downside, travel-related stocks were hit, partly on the vaccine news and partly amid fears of further quarantine restrictions, with British Airways parents IAG, Premier Inn owner Whitbread, InterContinental Hotels, easyJet and Upper Crust owner SSP all weaker.

Pub chain Wetherspoon was also under the cosh after the government announced a new ban on gatherings of more than six people from next week due to rising coronavirus cases.

IG analyst Joshua Mahony said the fear is that the ban on bigger gatherings is "just the tip of the iceberg as the government begins to ramp up tightening measures first in a list of potential actions that could ultimately hit businesses".

"The fact that the likes of JD Wetherspoon, easyJet, and Cineworld are leading the FTSE 350 declines does highlight the fact that further growth in UK Covid cases will likely lead to restrictions on travel and social interactions. From an airline perspective, the fear is that it will soon be a case of other nations imposing quarantines on the UK as the shoe is placed on the other foot."

Market Movers

FTSE 100 (UKX) 5,979.93 0.84%
FTSE 250 (MCX) 17,533.06 -0.52%
techMARK (TASX) 3,819.54 -0.04%

FTSE 100 - Risers

Ashtead Group (AHT) 2,813.00p 4.19%
BT Group (BT.A) 107.45p 3.17%
Royal Dutch Shell 'B' (RDSB) 1,053.60p 2.93%
Royal Dutch Shell 'A' (RDSA) 1,095.80p 2.87%
BP (BP.) 265.60p 2.75%
Vodafone Group (VOD) 110.12p 2.72%
Pearson (PSON) 551.40p 2.61%
British American Tobacco (BATS) 2,640.00p 2.52%
Unilever (ULVR) 4,682.00p 2.50%
GlaxoSmithKline (GSK) 1,528.00p 2.36%

FTSE 100 - Fallers

Rolls-Royce Holdings (RR.) 210.70p -3.75%
International Consolidated Airlines Group SA (CDI) (IAG) 201.60p -2.98%
Whitbread (WTB) 2,381.00p -2.86%
ITV (ITV) 62.76p -2.64%
InterContinental Hotels Group (IHG) 4,367.00p -2.46%
Persimmon (PSN) 2,454.00p -2.31%
M&G (MNG) 156.85p -2.00%
Taylor Wimpey (TW.) 112.55p -1.96%
Kingfisher (KGF) 270.40p -1.92%
Polymetal International (POLY) 1,936.00p -1.90%

FTSE 250 - Risers

Avon Rubber (AVON) 3,905.00p 5.11%
Investec (INVP) 145.95p 3.92%
Apax Global Alpha Limited (APAX) 168.00p 3.32%
Morgan Sindall Group (MGNS) 1,264.00p 2.76%
Micro Focus International (MCRO) 286.30p 2.76%
Contour Global (GLO) 209.00p 2.70%
Aston Martin Lagonda Global Holdings (AML) 56.95p 2.61%
Pagegroup (PAGE) 396.60p 2.27%
XP Power Ltd. (DI) (XPP) 4,550.00p 2.25%
Caledonia Investments (CLDN) 2,595.00p 2.17%

FTSE 250 - Fallers

Wetherspoon (J.D.) (JDW) 964.00p -7.84%
SSP Group (SSPG) 235.20p -6.89%
WH Smith (SMWH) 1,115.00p -6.14%
Capita (CPI) 29.12p -4.96%
easyJet (EZJ) 569.00p -4.75%
Rank Group (RNK) 128.60p -4.74%
Cineworld Group (CINE) 54.46p -4.49%
Meggitt (MGGT) 277.20p -4.45%
Oxford Biomedica (OXB) 822.00p -4.42%
Equiniti Group (EQN) 108.60p -4.23%