It continues to look like the recovery from coronavirus will be a messier affair than the market hoped and stocks remain under pressure accordingly. The FTSE 100 follows a bad end to last week with a lacklustre start, says AJ Bell investment director Russ Mould.
“Whether a growing rate of infections is a second wave or second spike in the pandemic or just a continuation of the first wave it is clear the virus is not going away and that is weighing on equities.
“Escalating tensions between the US and China, a theme of the last few years which has returned with a vengeance since the introduction of a new security law in Hong Kong, are just another factor leading investors to be more cautious.
“Amid diminishing risk appetite, safe haven asset gold remains close to its recent record high, with the $2,000 per ounce mark being eyed in some quarters.”