FTSE shakes off big US losses

“The higher you climb the further you have to fall. The US market’s recent massive outperformance of the FTSE 100, which has been stuck in the foothills following the coronavirus correction, perhaps explains why the market wobble across the Atlantic hasn’t had quite the same impact in London,” says AJ Bell Investment Director Russ Mould.

“Also helping the FTSE shake off any cues from the US has been continuing weakness in sterling amid concern over the direction of Brexit negotiations. A falling pound helps increase the relative value of the overseas earnings of the multinational names which dominate the index.

“Again the tech names which led Wall Street to the top of the hill are leading it down again. Overnight Tesla fell an eye-catching 21%, and oil prices continued to slump with Brent Crude below $40 per barrel and at its lowest levels since June.

“Closer to home AstraZeneca lost some ground on news it has had to pause a trial of its Covid-19 vaccine after one participant suffered an adverse reaction.

“This news won’t help wider investor sentiment given a vaccine is the most likely route back to some sort of normality, although Astra’s effort is just one of several being trialled globally and some hiccups are to be expected in the development of any new medicine.”

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