FTSE 100 and US stocks slip amid second-wave worries
The FTSE 100 was set to end the day lower and US stocks fell as concerns about rising coronavirus cases and new restrictions weighed on global sentiment.
London’s blue chip index opened lower and was down 0.8 per cent by 4pm at 5,951 points. The mid-cap FTSE 250 had shed 1.5 per cent.
Read more: Coronavirus: London escapes new restrictions, but City Hall says it won’t last
On Wall Street, investors were troubled by Johnson & Johnson suspending its coronavirus vaccine trials.
The S&P 500 slipped 0.4 per cent. The Dow Jones was down 0.3 per cent but the tech-heavy Nasdaq was 0.2 per cent higher.
On the continent, Germany’s Dax was down 1.3 per cent. France’s CAC 40 slipped one per cent and the Europe-wide Stoxx 600 was 0.8 per cent lower.
New restrictions damped the FTSE 100’s mood
Prime Minister Boris Johnson yesterday announced a new three-tiered system of restrictions as coronavirus cases continued to rise.
London managed to escape new measures. Liverpool was placed into the highest category which will see hospitality venues shut and social mixing banned.
A set of sobering stats from the Office for National Statistics (ONS) also did little to quell fears over the economic impact of the pandemic. They showed that redundancies have soared to their highest level in more than a decade.
Travel, property, investment and banking firms weighed on the London market after the tighter restrictions were announced.
Rolls Royce, the jet engine-maker, led the fallers with a 6.3 per cent drop. Hargreaves Lansdown and Lloyds were not far behind, falling 4.9 per cent.
Land Securities was down 4.8 per cent and British Land was 4.7 per cent lower.
“The next couple of quarters is going to be extremely challenging for many countries,” said Craig Erlam, senior market analyst at currency firm Oanda.
“And the UK can count itself among those with the worst prospects.” He said that the latest fiscal support measures will not be enough “to stop a surge in unemployment”.
US stocks slip amid vaccine worries
Wall Street shares jumped yesterday. Among the things cheered investors were hopes that a Democrat victory in next month’s presidential election would lead to a big stimulus package.
Yet that enthusiasm waned today. Dampening the mood was the news that Johnson & Johnson had suspended its coronavirus vaccine clinical trials after a participant had fallen ill.
Connor Campbell, market analyst at trading platform Spreadex, said: “Facing Covid-19 vaccine delays, election anxiety and a stuffed third-quarter earnings season, the Dow Jones joined its European peers in the red on Tuesday.”
Johnson & Johnson shares dropped 2.1 per cent. Citigroup’s shares fell 3.6 per cent after it posted a 34 per cent year on year fall in third-quarter profit.
JP Morgan’s shares slipped 1.4 per cent despite its profit growing and beating analysts’ expectations.