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FTSE rises despite national lockdown

The FTSE 100 rose on Tuesday morning despite the UK entering another national lockdown.

The blue-chip index was up almost 0.5% to 6,605 points. Top risers this morning was retailer Next, where shares shot up following a positive trading update.

Fallers this morning included British Land (-2.3%), Land Securities (-2.2%), AB Foods (-1.6%), Polymetal International (-1.8%) and IAG (-1.7%)

Across Europe, shares were down. The FTSE 250 is down 0.4%, Germany’s DAX fell 0.3%, France’s CAC 40 opened 0.5% lower and Spain’s IBEX is down 0.6%.

Commenting on this morning’s markets, Conner Campbell from SpreadEx said: “At points on Monday, the UK index was up 2.9%, galloping to levels last seen at the start of March 2020 following the Oxford/AstraZeneca vaccine rollout. Then it was shot down by the announcement Boris Johnson would be addressing the nation to outline the latest set of restrictions.

“It shows how keen investors were to start 2021 on the front foot that the FTSE still managed to end Monday up 1.7% despite a fresh 6-week lockdown (with the pound admittedly taking much of the flak).

“There was evidence of such again this Tuesday. While the rest of Europe started essentially flat – the DAX down 0.1%, the CAC up the same amount – the FTSE rose 0.5%, desperate to keep above 6,600. Sterling held up as well as it could, nudging 0.1% higher against the dollar but remaining unchanged against the euro. Not great, given the extent of yesterday’s fall against both rival currencies.

“How the index and currency perform throughout the rest of the day may well come down to what additional support Chancellor Rishi Sunak announces this Tuesday, ideally at least a return to the kind of aid offered during Lockdown 1.0,” he added.

Yesterday the FTSE started 2021 with strength and outperformed its European rivals to end the day up 1.7 per cent.

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