European Market Open: Flat start as France reopens border with UK
Joshua Warner December 23, 2020 7:07 AM
Markets are to open broadly level this morning as the France-UK border reopens after being shut because of fears over a new strain of the coronavirus. Share:
European markets are set to open broadly flat this morning while the FTSE 100 is called to open lower.
The France-UK border is being reopened today after being closed for 48 hours over fears about a new strain of the virus, while Brexit talks rumble on.
In commodities, oil prices continued to slide to hit their lowest level in two weeks.
UK Car Production Declines In November: SMMT
Car manufacturing decreased 1.4 percent annually to 106,243 units in November.
Output for domestic markets dropped 10.4 percent, while that for exports gained marginally by 0.3 percent.
The annual decline in production masks a particularly weak November 2019 when precautionary factory shutdowns in anticipation of a potential no deal Brexit on October 31, depressed output.
Year-to-date production was down -31.0 percent with 380,809 fewer cars manufactured in 2020. This puts the industry on course to produce fewer than a million cars this year for only the second time since the early eighties, the lobby noted.
Around 85 percent of cars built in November were manufactured for exports, highlighting the critical importance of free and fair trade with global markets to UK car makers.
FTSE 100 Slides As Stronger Pound Weighs
BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - U.K. stocks edged lower on Wednesday as a strong pound weighed on exporters.
The pound rose against both the euro and dollar on the possibility of a Brexit trade deal and amid news of an agreement between the U.K. and France to reopen border traffic.
Meanwhile, U.K. car production declined in November, data released by the Society of Motor Manufacturers and Traders showed. Car manufacturing decreased 1.4 percent annually to 106,243 units in November.
The benchmark FTSE 100 slipped 13 points, or 0.2 percent, to 6.440 after closing 0.6 percent higher on Tuesday.
Click the thumbs up >Society of Motor Manufacturers and Traders (SMMT) chief executive Mike Hawes has said he fears a “New Year nightmare” for UK car manufacturers if the UK Government and EU fail to reach a trade agreement.
Hawes said the threat of ‘no deal’ was palpable, with just nine days to go until the UK’s departure from the union, adding that the sector, now also reeling from the latest coronavirus resurgence, Tier 4 showroom lockdowns and disruption at critical UK ports, needs tariff-free trading “more than ever”.
His comments came as the SMMT reported a further 1.4% decline in new car production (to 106,243 vehicles) in UK car plants for November.
Some 106,250 cars were built in the UK last month - down just 1,500 on 2019
The SMMT said a marginal year-on-year decline in outputs was helped by a slow November 2019 for the automotive sector
In the 11 months to November, total car production is down almost a third
This represents a loss of 380,809 models at a cost of some £10.5bn to the sector
SMMT bosses said the industry faced a nightmare New Year with no Brexit deal