FTSE 100 weighed down by China Covid-19 jitters

London’s FTSE 100 was today weighed down by the re-emergence of tough restrictions to tame Covid-19 in China over the weekend.

The capital’s premier index edged 0.12 per cent lower to 7,376.85 points, while the domestically-focus mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, climbed 0.68 per cent to 19,413.35 points.

Virus cases have been rising in China, causing the first Covid-19 related death in Beijing in months, sparking a tough response from law markers.

Investors have been hoping for global economic activity to be lifted by Beijing easing its tough response to the pandemic. 

FTSE 100 edged lower today

“However, renewed outbreaks of Covid have seen some restrictions return and helped dampen sentiment,” Russ Mould, investment director at broker AJ Bell, said.

Middle-class favourite and online supermarket Ocado continued its long term slide today, falling nearly five per cent and to the bottom of London’s FTSE 100.

Its shares are down nearly 60 per cent since the beginning of the year. Investors have soured on the firm after the boost it received during the pandemic from consumers turning to online supermarkets during lockdowns has whispered out.

High street retailers also dragged the premier index lower. 

Primark owner Associated British Foods 1.89 per cent, while Next shed 1.15 per cent.

Markets are worried British consumers will respond to elevated inflation whacking their finances by slashing spending.

Challenger bank Virgin Money surged to the top of the FTSE 250, climbing 12.53 per cent after it extended its share buy back programme.

The pound weakened nearly 0.6 per cent against the US dollar.

UK borrowing costs were flat, while oil prices edged lower.