Market report: FTSE 100 rises on signs some lockdowns look to be working

After a truly bleak coronavirus-blighted March, investors on Monday latched on to slightly brighter news. A number of countries, including Italy and Spain, reported declines in the pace of coronavirus death rates, giving people hope that government-enforced lockdowns may be working.

European markets rose, and the blue- chip index rose more than 3% to 5,580 points in early trading, before settling back down, up 95.49 points, or 1.76%, to 5510.99.

Spreadex analyst Connor Campbell said: “The markets came out the other side of the weekend willing to trying another rebound.” He added: “Though the UK is still in the early stages of its lockdown, with woefully insufficient testing and a Prime Minister in the hospital, the FTSE still joined in with the gains seen elsewhere.”

The FTSE 250 was 490.29 points higher at 14589.5.

Over to oil prices, and a mini rally was short-lived. US president Donald Trump tweeted late last week suggesting that Russia and Saudi Arabia appeared to be closer to a compromise to end the ongoing oil price war, fuelling an increase in prices. But uncertainty remained as the latest OPEC+ meeting, due to take place today, was delayed, likely until Thursday.

Brent crude fell to close to $30 per barrel earlier, before settling at $33.

Shares in BP were 5.65p, or 1.7% lower at 331.65p, while Royal Dutch Shell edged up slightly, 1.4p to 1472.4p.

Scores of companies unveiled their latest cost-saving measures as they try and ride out the virus crisis. Pay cuts were a common theme.

At The Restaurant Group, which is behind Frankie & Benny’s and Wagamama, chief executive Andy Hornby will take a 40% salary cut, while finance chief Kirk Davis loses 20% for three months.

The pair also said they will forgo respective bonuses of £98,000 and £109,000 they were due. TRG, which also said Santander had increased one of its loans to Wagamama, giving it more headroom, increased 2.28p to 37.96p.

Serviced office giant IWG’s chief executive Mark Dixon will take a 50% pay cut. As at January his base salary was £875,000. The shares improved 10.8p to 185.3p.

Logistics firm Stobart, which owns Southend airport, said it will furlough around 50% of its staff and the board and senior leadership have agreed to 20% pay reductions.

The shares gained 3.18p to 49.18p.