London open: Stocks fall as Covid-19 worries return
London stocks fell in early trade on Friday as optimism over a Covid-19 vaccine was replaced with concerns about rising cases.
At 0825 GMT, the FTSE 100 was down 0.7% at 6,294.96, 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 on the mood.
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 the coronavirus pandemic returned, with GKN owner Melrose and Primark owner AB Foods also lower.
However, online supermarket Ocado and food delivery service Just Eat Takeaway - both of which have benefited from lockdowns and restrictions - gained.
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.
Defence engineering company Ultra Electronics was knocked lower by a downgrade to ‘neutral’ at JPMorgan.
Market Movers
FTSE 100 (UKX) 6,294.96 -0.69%
FTSE 250 (MCX) 19,190.08 -0.58%
techMARK (TASX) 3,921.45 -0.86%
FTSE 100 - Risers
Whitbread (WTB) 2,757.00p 2.68%
Ocado Group (OCDO) 2,361.00p 1.55%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,536.00p 1.52%
Burberry Group (BRBY) 1,605.50p 0.97%
Scottish Mortgage Inv Trust (SMT) 1,048.00p 0.87%
RSA Insurance Group (RSA) 655.60p 0.80%
Rightmove (RMV) 654.00p 0.74%
Polymetal International (POLY) 1,690.00p 0.51%
AstraZeneca (AZN) 8,703.00p 0.50%
Auto Trader Group (AUTO) 571.60p 0.35%
FTSE 100 - Fallers
Rolls-Royce Holdings (RR.) 87.00p -3.33%
Melrose Industries (MRO) 142.20p -2.47%
Standard Chartered (STAN) 407.70p -2.11%
Prudential (PRU) 1,231.00p -1.99%
Lloyds Banking Group (LLOY) 32.82p -1.96%
BP (BP.) 233.15p -1.96%
Associated British Foods (ABF) 1,994.00p -1.92%
HSBC Holdings (HSBA) 365.65p -1.84%
Royal Dutch Shell 'B' (RDSB) 1,104.80p -1.83%
Barclays (BARC) 129.96p -1.81%
FTSE 250 - Risers
Premier Foods (PFD) 97.80p 2.95%
Paragon Banking Group (PAG) 391.00p 2.41%
Trainline (TRN) 407.00p 1.75%
Royal Mail (RMG) 275.30p 1.62%
Avon Rubber (AVON) 4,085.00p 1.62%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,536.00p 1.52%
ITV (ITV) 91.08p 1.47%
OneSavings Bank (OSB) 383.80p 1.05%
XP Power Ltd. (DI) (XPP) 4,220.00p 0.96%
Pets at Home Group (PETS) 385.40p 0.94%
FTSE 250 - Fallers
Helios Towers (HTWS) 175.20p -3.10%
Diploma (DPLM) 2,264.00p -2.83%
Wood Group (John) (WG.) 262.40p -2.74%
Crest Nicholson Holdings (CRST) 292.80p -2.66%
Meggitt (MGGT) 365.90p -2.50%
Carnival (CCL) 1,041.00p -2.44%
Countryside Properties (CSP) 403.00p -2.42%
Alliance Trust (ATST) 863.00p -2.38%
RHI Magnesita N.V. (DI) (RHIM) 3,010.00p -2.27%
Signature Aviation (SIG) 246.00p -1.99%