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London’s FTSE 100 broke a four-session dropping run on Tuesday after Prime Minister Boris Johnson launched restrictions to curb a resurgence in COVID-19 instances in Britain with out resorting to one other full-blown lockdown.
Johnson urged residents to make money working from home the place doable and ordered bars and eating places to shut early, with the brand new restrictions possible to final six months. He warned extra may come if these show inadequate.
After dropping nearly 5% during the last 4 classes, the FTSE 100 jumped as a lot as 1.2% after the announcement, earlier than closing 0.4% increased.
Johnson contemplating one other lockdown
It had marked its worst day in over three months on Monday on information that Johnson was contemplating one other lockdown, one the financial system can ill-afford, following scientific warnings that deaths in Britain may soar with out pressing motion.
“The rhetoric of Boris Johnson (on Monday) was a lot worse than what the measures are,” mentioned Michael Baker, analyst at ETX Capital in London. “The measures declared are a lot less crippling that than a full-scale lockdown.”
“Any sort of (market) moves now are going to be purely based on how the government reacts to the virus rather than what the virus is actually doing,” he added.
Internationally centered companies on the blue-chip index benefited farther from a slide within the pound.
The mid-cap index had reversed early losses to acquire up to 0.5%, however was again within the purple as insurers slumped.
Beazley dropped 14.1% on a probable doubling in claims, whereas different insurers had been hit after Britain’s Financial Conduct Authority proposed stopping insurers from charging current automotive and residential insurance coverage prospects greater than new ones.
Meanwhile, residence enhancements retailer Kingfisher topped the FTSE 100 after it reported a 23% leap in first half revenue, whereas funds processor Network International surged 25% after.
This story has been revealed from a wire company feed with out modifications to the textual content. Only the headline has been modified.
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