UK stocks, oil prices under pressure as Britain battles to reopen borders – business live | Business

Investors seem to be snapping up Britain’s domestic stocks that were made cheaper following a 2.1% slump on Monday.

The FTSE 250 is up 0.4% at 19,773 points

UK stocks are the odd ones out, falling further into the red while European stocks rise at the open.

Here is a snapshot of the initial prints:

• FTSE 100 is down 0.4%
• Germany’s DAX is up 0.5%
• France’s CAC 40 is up 0.3%
• Spain’s IBEX is up nearly 0.4%

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

UK stocks are set to come under pressure this morning as the government deals with the fallout of the new Covid strain, which has prompted more than 40 countries to shut their borders to Britain, and raised concerns about how quickly supply chains will come under threat.

Prime Minister Boris Johnson has been scrambling to reach a deal with France that would re-open the border between the two countries to freight by Wednesday, having been shut since Sunday. An announcement is expected later this morning.

The UK is also under pressure to impose another nationwide lockdown across England to bring the new strain – which is more easily transmitted between people – under control.

Oil prices are taking a hit on the prospect of a more drawn out recovery. The news agenda has sent Brent crude futures are down 1.6% at $50.08.

The FTSE 100 is also expected to drop at the market open, after nearly £30bn was wiped off the value of the blue chip index on Monday. However, the fall is not expected to be as severe.

Britain’s growing isolation has been viewed as a test run for Brexit, if leaders fail to reach a deal. Overnight, Downing Street made a major counter-offer on fishing access for EU fleets in British waters to break the deadlock, raising hopes of a deal before Christmas.

The UK chaos has overshadowed relief that US lawmakers have passed a $900bn pandemic relief package that will deliver long-awaited cash to businesses and individuals, and ensure resources are in place to roll out the vaccine across the country.

The agenda

• 1.30pm GMT: US Q3 GDP (final) & Core PCE price index for Q3