London Markets: FTSE 100 trades lower on virus concerns

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U.K. stocks traded lower Monday, as signs of new stimulus were not enough to offset global fears of rising coronavirus cases.

The FTSE 100 UKX, -0.84% traded 0.4% lower, with British Airways owner International Consolidated Airlines Group IAG, -4.89% and mining group Glencore GLEN, -3.94% among the decliners.

“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.

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