London pre-open: Stocks seen muted amid ongoing Covid concerns
By Michele Maatouk
Date: Monday 19 Oct 2020
(Sharecast News) - London stocks were set for a muted open on Monday as worries about the coronavirus pandemic continue to weigh on sentiment.
The FTSE 100 was called to open unchanged at 5,919.
CMC Markets analyst Michael Hewson said: "Despite a decent recovery on Friday, European stock markets still finished the week lower on a combination of concerns, including worries over vaccine setbacks, as well the prospect that new lockdown restrictions in the face of rising infection and hospital admission rates, would kill off whatever vestiges of a nascent recovery there has been since April, when lockdowns started to get eased.
"Events over the weekend have done nothing to alleviate these worries, with the Italian government readying new measures, at the same time as London and Paris get used to more restrictive controls, while Belgium announced the closure of all bars and cafes for four weeks, with Ireland expected to do something similar later today, with many warning of the risks of a double dip recession. Europe in particular is vulnerable, a point acknowledged at the weekend by ECB President Christine Lagarde."
Investors will also be digesting the latest data out of China, which showed the economy grew 4.9% between July and September compared to the same quarter last year, coming in weaker than economists' expectations for 5.2% growth.
In corporate news, AstraZeneca said its Trixeo Aerosphere had been given marketing authorisation in the European Union (EU) for maintenance treatment in adult patients with moderate to severe chronic obstructive pulmonary disease (COPD).
John Laing Group has agreed to sell its portfolio of Australian wind farm assets to First Sentier Investors for AUD285m (£157m).
The FTSE 250 company said the sale value represented a small uplift to its book value for the portfolio as at 30 June, and was equivalent to a money multiple on its investment of 1.5x. Completion of the sale remained subject to customary consents, regulatory approvals and notification periods, which were expected to be satisfied by early 2021.
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