FTSE rises 3% by 162 points to 5,578 today as City welcomes slowing coronavirus death rates in Italy and France but remains concerned over Boris Johnson’s health
- FTSE 100 index of Britain’s leading firms is up 162 points or 3% to 5,578 today
- Slowdown in deaths in France and Italy raises hopes over lockdown measures
- But gains were capped after PM spent a night in hospital with the infection
- Oil prices falling after Saudi-Russian negotiations to cut output were delayed
London markets jumped this morning as a slowdown in coronavirus deaths in France and Italy raised hopes that lockdown measures were starting to show results.
The FTSE 100 index of Britain’s leading firms was up 162 points or 3 per cent to 5,578 in early trading this morning.
However the gains were capped by ongoing concerns over the health of Prime Minister Boris Johnson who spent a night in hospital with the infection.
It comes after Italy reported its lowest daily deaths for more than two weeks yesterday, while France’s daily death toll dropped and admissions into intensive care slowed.
TODAY AND LAST FRIDAY: The FTSE rises in early trading today after finishing last Friday down
PAST WEEK: The FTSE had a topsy turvy week last week, but has started this morning by rising
PAST FORTNIGHT: The FTSE has overcome some coronavirus-related losses in recent weeks
Ian Williams, an analyst at Peel Hunt LLP in London, told of ‘tentative signs that equity investors may be looking through what remains a worrying pick-up in cases’.
The worldwide spread of coronavirus has prompted nationwide stay-at-home orders, virtually halting economic activity.
Data last Friday showed business activity in the eurozone contracted severely in March, foreshadowing a deep economic and earnings recession.
Meanwhile oil prices skidded today after Saudi-Russian negotiations to cut output were delayed, keeping oversupply concerns alive.
A man wearing a face mask walks past a board at the Hong Kong Stock Exchange today
The Milan Stock Exchange building ‘Piazza degli Affari’ on Saturday. The Italian government continues to enforce the nationwide lockdown measures to control the spread of coronavirus
Brent crude fell as much as $4 after Saudi Arabia and Russia shifted their meeting, initially scheduled for today, to Thursday even as the pandemic pummels demand.
Overnight, Australia’s benchmark index rose 3.3 per cent, Japan’s Nikkei added 2.4 per cent after a slow start while South Korea’s KOSPI index climbed 2.1 per cent.
The pandemic has claimed 68,000 lives and infected over a million people globally. The United States has the highest number of reported cases, at more than 300,000.
Concerns about heavy damage to the global economy have pushed investors into the perceived safety of government bonds where yields are at or near all-time lows.