The UK may have enjoyed a bit of an Indian summer in recent days but sentiment was ice cold in the markets on Monday morning as the FTSE 100 fell sharply below the 6,000 mark,” comments Russ Mould, investment director at AJ Bell.
“The move followed mixed trading in Asia and matched similar-sized drops on other European exchanges as investors weigh concerns around a new wave of coronavirus infections and fears that central banks aren’t immediately coming to the rescue with a fresh round of stimulus.
“The expected introduction of new national lockdown measures in the UK, even if they are not as severe as those introduced in March, will have a big economic impact. Domestically focused firms like free-to-air broadcaster ITV and the banking sector took a big hit.
“Travel stocks again faced severe turbulence amid the rising fears over new restrictions – with British Airways owner International Consolidated Airlines the top FTSE 100 faller.
“As another round of being stuck at home is anticipated, names like Ocado and Just Eat Takeaway were in demand on a potential renewed surge in demand for online grocery orders and takeaways.
“With the risks around a particularly divisive US Presidential election starting to loom large, it was unsurprising to see investors reach for traditional safe haven gold which ticked up above $1,950 per ounce.”
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