London midday: Stocks in the red as vaccine optimism fades
London stocks were still a little weaker by midday on Friday as optimism over a Covid-19 vaccine was replaced with concerns about rising cases.
The FTSE 100 was down 0.4% at 6,314.45, having ended lower on Thursday after eight consecutive days of gains.
Sentiment took a hit from rising coronavirus cases, with the number of people requiring hospitalisation in France rising to a record level on Thursday, while UK infections surged by nearly 50%. In addition, news of a stay at home order in Chicago from Monday and the potential closure of New York schools also weighed.
CMC Markets analyst Michael Hewson said: "For all the optimism about the delivery of a successful vaccine, the reality is that the announcement of a possible candidate was never likely to be able to put a stop to what is currently playing out across Europe, as well as the US, in terms of a sharp rise in coronavirus infection rates, hospitalisations, and ultimately, a sharp rise in mortality rates.
"With the worst of the cold weather yet to arrive and the pace of new infections only expected to increase as we head towards year end, it is slowly becoming apparent that the arrival of a vaccine can’t come soon enough."
Corporate news was thin on the ground.
Engine maker Rolls-Royce was under the cosh again as worries about coronavirus returned.
On the upside, Premier Inn owner Whitbread was the top performer on the FTSE 100 after Barclays upgraded the stock to ‘overweight’, saying the recovery was in sight. "We view Whitbread as one of the most attractive recovery plays in the sector following this week's vaccine news," it said.
Whitbread was also upgraded by Bank of America Merrill Lynch.
Market Movers
FTSE 100 (UKX) 6,314.45 -0.39%
FTSE 250 (MCX) 19,224.96 -0.40%
techMARK (TASX) 3,940.58 -0.37%
FTSE 100 - Risers
Rolls-Royce Holdings (RR.) 93.44p 3.82%
NATWEST GROUP PLC ORD 100P (NWG) 148.75p 3.44%
Persimmon (PSN) 2,823.00p 3.22%
Lloyds Banking Group (LLOY) 34.53p 3.17%
Legal & General Group (LGEN) 237.10p 2.37%
M&G (MNG) 178.90p 2.23%
Whitbread (WTB) 2,739.00p 2.01%
St James's Place (STJ) 1,090.00p 1.87%
Burberry Group (BRBY) 1,618.50p 1.79%
Aviva (AV.) 310.70p 1.70%
FTSE 100 - Fallers
Halma (HLMA) 2,446.00p -3.36%
Smith & Nephew (SN.) 1,481.00p -2.98%
Associated British Foods (ABF) 1,982.00p -2.51%
Intertek Group (ITRK) 6,098.00p -2.37%
Ferguson (FERG) 7,924.00p -2.37%
Relx plc (REL) 1,776.00p -2.18%
Rentokil Initial (RTO) 541.40p -1.96%
Experian (EXPN) 3,109.00p -1.96%
Fresnillo (FRES) 1,103.50p -1.91%
Prudential (PRU) 1,232.00p -1.91%
FTSE 250 - Risers
Capita (CPI) 38.94p 7.72%
Chemring Group (CHG) 278.50p 5.09%
SSP Group (SSPG) 325.20p 4.57%
Spirent Communications (SPT) 262.50p 4.17%
CMC Markets (CMCX) 351.00p 3.85%
OneSavings Bank (OSB) 392.20p 3.26%
PureTech Health (PRTC) 269.50p 3.26%
Just Group (JUST) 48.50p 3.19%
Paragon Banking Group (PAG) 393.20p 2.99%
Marks & Spencer Group (MKS) 124.25p 2.69%
FTSE 250 - Fallers
Safestore Holdings (SAFE) 811.50p -3.85%
Mediclinic International (MDC) 315.00p -3.67%
4Imprint Group (FOUR) 2,530.00p -3.44%
QinetiQ Group (QQ.) 312.60p -3.28%
WH Smith (SMWH) 1,358.00p -3.14%
Renishaw (RSW) 5,435.00p -2.95%
Signature Aviation (SIG) 243.80p -2.87%
Cineworld Group (CINE) 42.24p -2.83%
Workspace Group (WKP) 695.50p -2.80%
RHI Magnesita N.V. (DI) (RHIM) 3,000.00p -2.60%