FTSE 100 called lower ahead of open as extended lockdown fears rise

The FTSE 100 is called close to 1% lower ahead of Thursday’s open as global equities respond to rising fears that lockdown will be extended in a number of major economies. CFD and spreadbetting firm IG Markets sees London’s blue-chip benchmark falling some 56 points, making the price 6,331 to 6,334 with just over an hour to go until the open. Markets have been boosted by the promise of vaccines on the horizon but evidently the immediate day-to-day news continues to provide reasons to be fearful. “US markets slipped back for the second day in a row, after New York mayor Bill de Blasio announced the closure of schools in response to the rise in cases. With mortality rates starting to rise again in Spain and Italy and infection rates rising to a record in Japan this northern hemisphere winter looks like being a long and dark one,” noted CMC Markets analyst Michael Hewson. “The late sell-off in the US looks set to translate into a softer open here in Europe later this morning, after another mixed Asia session, and this is where investors need to make a calculation in balancing the risks of the virus, vs the vaccine. The analyst added: “With infection and hospitalisation rates rising, and the risk that current lockdown restrictions either remain in place, or get extended into 2021, the probability that any economic damage will become permanent is only likely to increase.” On Wall Street, the Dow Jones gave up 344 points or 1.16% to close Wednesday at 29,438 and similarly the S&P 500 also lost 1.16%, to finish the day at 3,567. The Nasdaq meanwhile slipped 0.8% lower to end at 11,801 and the small-cap Russell 2000 index shed 1.26% to 1,769. In Asia, Japan’s Nikkei was trading 93 points or 0.36% lower at 25,634 and Hong Kong’s Hang Seng was down 117 point or 0.43% at 26,433. The Shanghai Composite was marked in positive territory, up 0.43% at 3,361. Around the markets The pound: US$1.3232, down 0.31% Gold: US$1,860 per ounce, down 0.6% Silver: US$23.98 per ounce, down 1.38% Brent crude: US$44.09 per barrel, up 0.7% WTI crude: US$41.31 per barrel, down 0.29% Bitcoin: US$17,776, unchanged