Good morning and welcome to the IC’s Markets Live blog, running down all the latest news which affects your portfolio.
Hospitality’s tepid response to reopening next week
You are now free to hug your loved ones.
The government confirmed yesterday that the next stage of lockdown easing will happen next week, as Boris Johnson hinted that this summer could mark the end of all social distancing restrictions.
From 17 May, pubs and restaurants will be allowed to welcome customers indoors, while leisure venues including museums, theatres and cinemas will reopen for service. Families will be able to greet each other by hugging, while up to 30 people can gather outdoors and six people or two households can meet inside.
But the new easing of restrictions was not welcomed with open arms by those in the hospitality sector, who say the continuing of social distancing measures means many businesses will still struggle to turn a profit.
“This is a psychological rather than economic reopening,” said Kate Nicholls, head of industry group UKHospitality.
At a Downing Street press conference, however, Johnson offered the strongest indication yet that the government could “dispense with the one metre plus rule” this summer. But he has not completely ruled out further restrictions if the virus spreads out of control, with scientists currently wary of a rise in cases of the Covid-19 variant first identified in India, known as B. 1.617.2
Further reading:
- Repositioning for reopening
- Simon Thompson: Investments for the new normal
- Buy into the reopening at a reasonable price via Janus Henderson European Focus
Tech sell off leads global markets lower
Global equities suffered a dramatic reversal of fortunes yesterday as a tech-led sell off dragged indices around the world into the red. With inflation fears growing amid an input pricing boom and many economies across the world either still struggling with coronavirus-related restrictions or an inflection points in their attempts at recovery it looks like it could be a rocky ride in equities over the summer.
Maybe Chris Dillow was right recently when he pointed out that 'Sell in May' still works. At the time of writing the FTSE100 was down more than 2 per cent in early trading, following the lead set in New York and across Asia overnight.
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