FTSE 100 falls as traders react to Boris Johnson’s new Covid 19 lockdowns

The FTSE 100 was expected to fall back from yesterday’s strong performance in early trading today as investors reacted to Boris Johnson’s new Covid 19 lockdown rules.

The blue chip index was being called down around 13 points to 6564 by traders on the IG Index spread betting platform.

Lockdowns were expected to take some of the shine off the previous session’s gains, but the UK’s biggest companies have been relatively relaxed about the day-to-day domestic Covid news. The performance of sterling is likely to be more of a factor.

The weak pound yesterday enabled the FTSE to achieve its 1.7% gain yesterday, which massively outstripped continental indices. Mining companies also put in a strong showing as commodities prices reacted well to strong China economic data.

Traders said the slide in the UK index today was set to be less dramatic than some might expect because lockdown fears began last night before the market closed, already knocking shares back from their peaks of the morning. 

Shares slipped back when the Prime Minister’s 8pm press conference was announced, particularly  in vulnerable retail, travel and leisure sectors.

While the UK lockdown changes looked the harshest, Germany also yesterday extended its restrictions to the end of January.

Shares in China Telecom, China Mobile and China Unicom rallied this morning in Asia after the New York Stock Exchange said it would no longer be delisting them.