The FTSE lost 11.71 points at 6472.59 although the falls were not more pronounced given the massive gains at the market last week
Shares around the world leaped on Friday after much-better than expected jobs data in the US triggered hopes of a major bounceback in the world’s biggest economy from the covid crisis.
However, while most of those share price gains were likely to be retained, investors were expected to lock in some of the paper profits they had made by selling stocks today.
The FTSE lost 11.71 points at 6472.59 although investors cheered that the falls were not more pronounced given the massive gains seen by the market last week. Stocks are now back at their levels seen on March 6, before the worst impact of covid began to bite. However, UK shares’ bounceback – spurred by the stimulus programmes from the Bank of England and government – is still lagging US shares, which are back to where they were at the start of the year.
Day One of the government’s quarantine plans for visitors to the UK was set to pressurise airlines and other travel and tourism stocks.
There were also mounting concerns as industry body, TheCityUK, said about a third of the debt being taken on by British firms under the government’s emergency COVID-19 lending plans could be unsustainable, raising the need for fresh capital from new investors.
Reports today also suggested the government was planning radical action to prevent foreign takeovers of UK companies if they are deemed not in the public interest. The moves were aimed largely at Chinese takeovers of UK technology businesses, but any prevention to mergers and acquisitions of private companies tends to send a chill through stock markets.
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