FTSE 100 creeps up by just 14 points or 0.2 per cent to 6,616 as investors tentatively welcome Boris Johnson’s plan to lift Covid restrictions
- FTSE 100 index rises 14 points to 6,616 in half-hour after PM’s announcement
- But index of Britain’s leading companies is still down by 12 points or 0.2% on day
- Fears persist among some investors over high stock valuations and inflation
The London stock market crept up this afternoon as investors tentatively welcomed Boris Johnson’s four-stage plan to lift England’s coronavirus restrictions.
The FTSE 100 index rose 14 points or 0.2 per cent to 6,616 in the half-hour after the announcement was made by the Prime Minister in the House of Commons.
However the index of Britain’s leading companies still closed by 12 points or 0.2 per cent on the day as fears persisted over high stock valuations and inflation.
Mr Johnson said measures could finally be lifted by June 21 – and in the first phase, all pupils in England’s schools are expected to return to class from March 8.
Socialising in parks and public spaces with one other person will also be permitted from that date. A further easing of restrictions will take place on March 29.
The FTSE 100 in the half-hour after Boris Johnson’s announcement today, from 3.30pm to 4pm
This second stage will see larger groups of up to six people or two households allowed to gather in parks and gardens, by the time the school Easter holidays begin.
Other measures in the road map set out by the Prime Minister include:
- From April 12 at the earliest: shops, hairdressers, nail salons, libraries, outdoor attractions and outdoor hospitality venues such as beer gardens will reopen.
- From May 17 at the earliest, two households or groups of up to six people will be allowed to mix indoors and limited crowds will be allowed at sporting events.
- From June 21 at the earliest, all remaining restrictions on social contact could be lifted, larger events can go ahead and nightclubs could finally reopen.
Alongside the plan, the PM launched a series of reviews – including on whether people should be able to show if they have had a Covid-19 vaccine or a negative test.
PAST MONTH: The FTSE 100 is shown over the past month having fallen from last week’s highs
PAST YEAR: The FTSE 100 collapsed when the pandemic began but has since partly recovered
The work will look at whether ‘Covid status certification’ could help reopen the economy by allowing people who have received a jab or a negative test result to do things which would not be allowed for those who could not prove their status.
Officials recognise that there are moral and ethical questions as well as practical ones for any such move, which has been highly controversial in Westminster.
Investor optimism is rising as governments embark on immunisation programmes to allow economies to reopen, although the US is nearing 500,000 Covid deaths.
In Germany, a survey showed business confidence is improving, with the robust industrial sector of Europe’s top economy withstanding the impact of restrictions.
Prime Minister Boris Johnson makes his statement at the House of Commons in London today
A nearly-empty Bank junction in the City of London on January 4, the first business day of 2021
The pound held gains above $1.40 – reaching its highest levels since April 2018 – as the British vaccine drive progresses well.
But the stock market rally that has characterised the past few months looks to have ground to a halt as traders worry that prices might have become a bit frothy.
Concern is growing that a recovery and US stimulus package will fuel an inflation surge, and that the Federal Reserve would then wind back record-low interest rates.
Investors are also keeping tabs on China-US relations after President Joe Biden urged European allies to stand up to political and economic challenges from Beijing.