U.K. stocks traded lower Monday, as signs of new stimulus were not enough to offset global fears of rising coronavirus cases.
“Overall, sentiment continues to be buffeted between signs of improving economic conditions, as lockdown restrictions ease, against concerns that Covid-19 cases are rising again in some countries,” said analysts at Lloyds Banking Group.
Supermarket stocks however climbed, with Ocado Group OCDO, +4.45% rising 5.1% and Morrison Supermarkets MRW, +3.04% rising 3.7%. Chancellor Rishi Sunak may cut the value-added tax next months, U.K. media reports suggest.
The pound GBPUSD, +0.78% meanwhile retook the $1.24 level. An op-ed written by Bank of England Gov. Andrew Bailey suggested that the central bank should trim its balance sheet before raising interest rates.