FTSE 100 set to start the week on back foot amid worries over coronavirus second wave

The FTSE 100 looks set to ignore Asia’s positive start to the trading week amid worries over a coronavirus second wave.

Apple’s decision to ‘re-close’ 11 US stores and the suspension of cruise operations there too left traders with food for thought over the weekend.

Here in the UK, the relaxation of the two-metres rule is designed to aid the recovery of the hospitality industry.

But as Germany’s emergence from lockdown has shown, it might also coincide with a sharp uptick in the infection rate.

“With Germany widely lauded for its swift coronavirus response, both from a fiscal as well as a medical standpoint, countries across Europe will now be nervously glancing in its direction as authorities there grapple with this resurgence, over concerns it could ripple out beyond its borders and threaten the re-opening plans of countries across the rest of Europe,” said Michael Hewson of CMC Markets.

Turning to the week’s scheduled news, updates from supermarket giant Tesco (LON:TSCO), publican Marstons (LON:MARS) and Royal Mail Group (LON:RMG) stand out on the corporate calendar.

On the macroeconomic front, the market is expecting Tuesday’s US and UK purchasing managers’ data for June with a weary air of resignation.

“Although usually the manufacturing PMIs are the more important, nowadays it’s the service sector that’s under pressure and so everyone is waiting to see how the service sector recovers,” said analyst Marshall Gittler at BD Swiss.

Around the markets: Pound US$1.2391 (up 0.33%), gold US$1,767.50 an ounce, up US14.50;Brent crude US$42.05, down 14 cents.                      

Monday’s main news

Finals: Polar Capital Holdings PLC (LON:POLR)

Business headlines

Financial Times

• Sunak set to follow VAT stimulus with autumn tax rises
• Brexit: Why hopes are rising that EU and UK could find compromise
• Wirecard’s €1.9bn never entered Philippine financial system, bank governor says

Times

• British Gas hits back with low-cost rival of its own
• UK clamps down on takeover rules for firms fighting Covid
• JD Sports is preparing for a possible pre-pack administration of Go Outdoors after the retailer was laid low by the lockdown

Telegraph

• Ofgem lets energy suppliers start chasing unpaid bills
• Rogue business owners use coronavirus loans to buy property and supercars
• National Grid challenges Trump over rules that favour petrol over electric cars

Guardian

• UK black professional representation ‘has barely budged since 2014’
• Former chancellor Alistair Darling calls for emergency VAT cut