FTSE 100 rises after strong China data but jobs and Boris Johnson's Covid-19 lockdowns dominate trading
The FTSE 100 was today set to creep up slightly as traders and analysts wrestled to understand the implications of Boris Johnson's latest coronavirus lockdown rules on company profits.
As pubs and other hospitality companies began reviewing potential redundancy and closure plans, shares across the sector were set for more turbulent times. Some 27,000 pubs are already closed as a result of lockdowns, triggering huge profit crises for pub operators and a knock-on effect for the owners and financiers behind their properties.
UK unemployment data at 7am today will give the latest view across the economy of how badly the crisis is affecting jobs.
The rate of unemployment on the International Labour Organization measure is expected to increase from 4.1% to 4.3%in the three months to August with the more dramatic claimant count set to edge closer to 8% with the total number of jobs lost hitting nearly 700,000 between August and September.
However, it may not all be grim news, according to CMC Markets's David Madden.
He points out: "There were some bright spots in the data last month with construction, transport and storage sectors doing well, as vacancies increased. The hope is that this trend continued into September, however, with the furlough scheme still running the fear is that the worst is still to come."
The FTSE 100 was expected to rise 19 points to 6020 on the market opening, while the Cac-40 in Paris was being called flat and the Dax in Germany up 7 at 13,145.
There were signs of where Europe could be in a few months as China reported a big bounce back in exports and imports.
September figures showed an increase of 9.9% in exports, fuelled again by demand for PPE. Imports, which had been worryingly low, jumped 13.2%, reflecting a pickup in demand among Chinese industry and consumers.
JPMorgan kicks off Wall Street's third quarter reporting figures with parts of its investment bank expecting to have had a bumper season but loan defaults likely to be in most focus.
Volatility in markets and demand by companies to raise emergency funding has boosted many departments' income.
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