London close: Stocks finish weaker as investors climb down from vaccine bonanza

The FTSE 100 ended the session down 0.36% at 6,316.39, and the FTSE 250 was off 0.17% at 19,270.00.

Sterling was stronger against its major trading pairs, last rising 0.38% on the dollar to $1.3168, and advancing 0.28% against the euro to €1.142.

It was the second day that London’s top-flight index ended lower, after eight consecutive days of gains.

Sentiment took a hit from rising coronavirus cases, with the number of people requiring hospitalisation in France rising to a record level on Thursday, while UK infections surged by nearly 50%.

In addition, news of a stay-at-home order in Chicago from Monday and the potential closure of New York schools also weighed.

“It has been a relatively quiet session today when you take into consideration the aggressive moves that were seen during the week. Stocks are broadly set to finish higher,” said CMC Markets analyst David Madden.

“The health crisis is back at the forefront of traders’ minds given the number of Covid-19 cases in Germany, the UK and Italy.

“Several major economies in Europe have lockdowns in place and with the ways things are going, extensions could be issued.”

Madden said some of the fear surrounding the health crisis was taken out of the market by the European Central Bank’s Isabel Schnabel.

“The central banker said the ECB would be ready to act if necessary, and that helped the mood in the equity markets.

“In recent years, stock markets have become addicted to monetary easing, and it seems the ECB are going to loosen their policy further next month.

“The Pfizer-BioNTech vaccine story is still lingering, but there is now the realisation that even if things go well with respect to regulatory approval, the pandemic will not be resolved quickly.”

Corporate news was thin on the ground on the last day of the trading week, with engine maker Rolls-Royce reversing earlier losses to end the day up 4.11%.

Premier Inn owner Whitbread advanced 3.58% after 0upgraded the stock to ‘overweight’, saying the recovery was in sight.

"We view Whitbread as one of the most attractive recovery plays in the sector following this week's vaccine news," it said.

Whitbread was also upgraded by Bank of America-Merrill Lynch.

Market Movers

FTSE 100 (UKX) 6,316.39 -0.36%
FTSE 250 (MCX) 19,270.00 -0.17%
techMARK (TASX) 3,939.97 -0.39%

FTSE 100 - Risers

M&G (MNG) 183.35p 4.77%
Legal & General Group (LGEN) 241.30p 4.19%
Rolls-Royce Holdings (RR.) 93.58p 4.11%
Lloyds Banking Group (LLOY) 34.74p 3.73%
Whitbread (WTB) 2,780.00p 3.58%
NATWEST GROUP PLC ORD 100P (NWG) 147.50p 2.57%
British Land Company (BLND) 474.60p 2.44%
Persimmon (PSN) 2,800.00p 2.38%
Taylor Wimpey (TW.) 148.75p 2.27%
Johnson Matthey (JMAT) 2,490.00p 2.26%

FTSE 100 - Fallers

Halma (HLMA) 2,432.00p -3.91%
Experian (EXPN) 3,068.00p -3.25%
Associated British Foods (ABF) 1,978.00p -2.71%
Intertek Group (ITRK) 6,078.00p -2.69%
Relx plc (REL) 1,771.50p -2.42%
Next (NXT) 6,670.00p -2.34%
London Stock Exchange Group (LSE) 8,422.00p -2.12%
Smith & Nephew (SN.) 1,495.50p -2.03%
Compass Group (CPG) 1,375.00p -1.89%
Ocado Group (OCDO) 2,283.00p -1.81%

FTSE 250 - Risers

Capita (CPI) 39.17p 8.35%
PureTech Health (PRTC) 282.00p 8.05%
SSP Group (SSPG) 327.60p 6.05%
Spirent Communications (SPT) 265.00p 5.16%
Trainline (TRN) 418.80p 4.70%
CMC Markets (CMCX) 353.00p 4.44%
Aston Martin Lagonda Global Holdings (AML) 65.15p 4.07%
Balfour Beatty (BBY) 259.00p 3.60%
ICG Enterprise Trust (ICGT) 926.00p 3.58%
Morgan Sindall Group (MGNS) 1,382.00p 3.29%

FTSE 250 - Fallers

4Imprint Group (FOUR) 2,495.00p -4.77%
AO World (AO.) 402.00p -4.40%
Safestore Holdings (SAFE) 808.00p -4.27%
Renishaw (RSW) 5,375.00p -4.02%
St. Modwen Properties (SMP) 380.00p -3.92%
QinetiQ Group (QQ.) 310.60p -3.90%
WH Smith (SMWH) 1,353.00p -3.50%
Mediclinic International (MDC) 316.00p -3.36%
Cairn Energy (CNE) 143.10p -3.05%
GCP Student Living (DIGS) 139.60p -3.05%