The easing of coronavirus-related restrictions in England, dubbed “Freedom Day” by the UK government, turned out to be a difficult day for UK stocks on Monday. In late-afternoon trading, the FTSE 100 UKX, -2.34 percent fell 2.7 percent, putting the benchmark index on course for its worst day since Sept. 21, when it fell 3.4 percent.
The selling wasn’t limited to the United Kingdom; shares in the United States SPX, -1.64 percent, and Europe SXXP, -2.30 percent were also hit. “Today was supposed to be a watershed moment in the UK economy, as the handbrake of COVID-19 limitations was finally lifted. Instead of being a story of vaccine success, it has become not only a political shambles, but also a major market selloff due to concerns about the impact rising hospitalizations and large increases in the number of people self-isolating will have on the recovery story, according to Michael Hewson, chief market analyst at CMC Markets UK. Following interaction with health minister Sajid Javid, who got coronavirus, the United Kingdom imposed fresh travel restrictions on France over the weekend, and Prime Minister Boris Johnson agreed to self-isolate. After being notified by the trace-and-test software, many workers in the UK restaurant business have been forced to isolate. “COVID has resurfaced as a top concern among investors right now,” said David Donabedian, chief investment officer of CIBC Private Wealth in the United States. Broadcaster ITV ITV, -6.64 percent, was the top FTSE 100 decliner, followed by engine maker Rolls-Royce RR, -6.51 percent, and British Airways owner International Airlines Group IAG, -5.23 percent. Just Eat Takeaway JET, +3.25 percent was one of the few gainers, boosted by hopes that the coronavirus outbreak will keep customers at home ordering food delivered./n
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