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he FTSE 100 Index was set to get back on its winning streak today after losing some ground on Friday as optimism returned despite some of the euphoria from the Pfizer vaccine announcement wearing off.
The London market was being called up 46.5 points at 6372 by spread betting platform IG Index, with stocks appearing to get their mojo back as US election news over the weekend gave rise to new hopes of a fairly decisive Joe Biden win.
Financial markets were starting to look beyond Covid-19, in what is a major shift in traders’ mentality, despite rising infection and death rates in many parts of the world.
Asian shares had a positive session today, helped by the weekend signing of an Asia-Pacific trade deal and strong data from China’s economy.
Chinese retail sales gained 4.3% in October, which CMC Markets said was slightly below expectations but still augurs well for the rest of the year.
Industrial production gained 6.9%, again showing the West what the future could hold once Covid is on the wane.
Brexit remains in focus in the UK as talks on a trade deal with the EU continue this week.
Markets expect the deadline for a deal for the end of this week will be extended possibly to 10 December as Britain remains determined not to give ground on fishing and “level playing field” rights for access to the EU.
The EU is not prepared to offer a level playing field if Britain is allowed to breach EU state aid rules because it feels that would give Britain an unfair advantage on its neighbours next door.
Boris Johnson’s confinement to self-isolation did little to boost optimism about his “reset” of the government following adviser Dominic Cummings’ departure last week.
Britain’s distinct set of problems were one reason it was set for a less impressive rebound today than the Dax in Germany, predicted up 150 at 13226 and France’s CAC-40, up 70 at 5450.
Royal Mail shares could come under pressure ahead of its results this week after reports said The Post Office was severing ties with it in a bid to allow its branches to be used by rival parcel services.
Parcels have been the big growth area for Royal Mail, where letters have declined precipitously as people switch to communicating by email and social media.
National Grid will be in focus amid questions over its management’s competence after revelations that it could have been fined £220 million by Ofgem for its flawed spending and customer billing plans.
The regulator said the company’s business plans were so poor it could have received double the fine it actually got but that fines had been capped.
JD Sports shares will come into the spotlight after a late victory on Friday in a tribunal against the Competition and Markets Authority block on its takeover of the Footasylum chain.
The CMA had stopped the takeover and ordered it to sell Footasylum on monopoly grounds, but the tribunal found the regulator had failed to properly consider the impact of Covid-19 on Footasylum’s future as a standalone business.
Then, at the weekend, it emerged that it had entered the ranks of retailers looking to assemble a rescue bid for Debenhams, pitting itself against Mike Ashley’s Frasers Group, owner of House of Fraser and Sports Direct.
Debenhams went into administration last year and was taken over by its lenders, then again in April this year.
Sir Philip Green, who denied reports he was close to putting Arcadia into administration, is reliant on the Debenhams chain for sales of his brands such as TopShop.
Green is said to be seeking a £30 million lifeline for Arcadia.
Reports earlier this month said Ashley had been frozen out of the Debenhams auction over price.
Vodafone results out later will be keenly watched for news on how badly Covid travel bans have impact roaming charges.
News will also be sought on the bumper IPO of its masts business in Frankfurt next year.
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