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FTSE flattened along with sterling by UK Covid chaos

by LLB Editor
21st Dec 20 11:35 am

Markets are reeling from the latest twist in the coronavirus crisis which has clouded the outlook for the remainder of 2020 and much of the first quarter of 2021,” says AJ Bell investment director Russ Mould.

“The emergence of a new strain in the south east of England raises the prospect of strict restrictions for an uncertain period while the UK races to vaccinate its population.

“Restrictions on traffic between the UK and other countries, including in the case of France on freight, has raised the pressure on a supply chain already creaking under the weight of an online Christmas and Brexit uncertainty.

“This sorry cocktail put pressure on the pound and the FTSE 100 on Monday, with inevitably the retail, travel and leisure sectors bearing the brunt. Oil prices also fell on fears the new strain of coronavirus could hurt demand.

“Just 10 days before the end of the transition period and we still don’t know if it will be deal or no deal in the Brexit negotiations.

“Outside the UK there was more market-friendly political news as US lawmakers effectively agreed a $900 billion Covid relief package with sign-off expected later today.”

 

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