The FTSE 100 opened 1.6% soon after Thursday’s opening bell as Europe braces itself for tighter Coronavirus restrictions.
The blue-chip index fell as concerns that London would have tighter restrictions introduced as soon as this week.
Across Europe, Paris, Amsterdam, and Berlin have introduced curfews in a bid to fight rising infection rates.
Connor Campbell, from Spreadex, commented on this mornings fall: “A series of tougher covid-19 restrictions across Europe sent the markets spiralling on Thursday, one of investors’ regular reminders that, however much they try and deny it, the pandemic is still very much a thing.
“It was a sharp and loud wake-up call, the kind the market often seems to sleep through, but one that was hard to ignore this Thursday. The DAX tanked 2.1%., or 280 points, as it dropped to a 2-week low of 12,750. The CAC was a smidge better, though that still translated to a 1.6% decline.
“There was no escaping for the FTSE 100, either. Fearful that such restrictions could well be on their way – especially since there is more and more support, if outside the Cabinet, for a 2 to 3-week ‘circuit breaker’ – the UK index sank 2%, leaving it just above 5820 for the first time in a month and a half,” Campbell added.
Asian shares also fell overnight as investors shared concerns of rising infection rates.
The Hang Seng in Hong Kong fell by 1.79%. Shanghai’s composite fell 0.26% whilst Japan’s Nikkei 225 also slipped 0.51%.
On more positive news, traders expressed optimism over a Brexit a trade deal being agreed on between the UK and EU. Negotiations are likely to continue until the end of the year.