London open: Stocks slump amid lockdown fears
(Sharecast News) - London equity markets fell sharply in early trade on Monday, with travel, hospitality and leisure stocks all under the cosh as investors mulled the prospect of tougher lockdown restrictions amid rising coronavirus cases in the UK and abroad.
At 0900 BST, the FTSE 100 was down 2.4% at 5,865.76.
England's chief medical officer Chris Witty and chief scientific adviser Sir Patrick Vallance are due to give a public address at around 1100 BST on the latest coronavirus data.
Witty is expected to say the trend in the UK is heading in the wrong direction as cases continue to rise. Meanwhile, Prime Minister Boris Johnson will reportedly address the nation later in the week over winter lockdown plans. Measures being considered are said to include curfews for pubs and restaurants and banning households from meeting up.
Richard Hunter, head of markets at Interactive Investor, said: "With no confirmed vaccine for the coronavirus as autumn approaches, there is likely to be additional strain on government resources as they attempt to stave off a second wave, as the colder weather inevitably brings further cases to contend with.
"Prospects for a sharp economic recovery have all but disappeared, as global growth receives the new threat of a resurgent pandemic. In addition, with talks for a further fiscal stimulus in the US seemingly in deadlock, investors have been choosing to vote with their feet over recent trading sessions given the deteriorating outlook."
In equity markets, HSBC was under pressure following reports over the weekend that it was allowing money from a Ponzi scheme to be transferred around the world, according to a leak of secret files. Standard Chartered was also implicated. Shares of both banks fell, along with Lloyds, Barclays and NatWest.
Rolls-Royce slid as it emerged over the weekend that the engine maker is looking to raise £2.5bn to bolster its balance sheet.
Travel-related stocks were hit hard amid worries about further Covid restrictions, with British Airways parent IAG, InterContinental Hotels and Premier Inn owner Whitbread all firmly lower.
Cineworld, pub group Mitchells & Butlers, budget airline easyJet and cruise operator Carnival were also weaker.
On the upside, online supermarket Ocado was the biggest riser on the top-flight index amid reports of panic-buying in preparation for a potential second lockdown.
Market Movers
FTSE 100 (UKX) 5,865.76 -2.35%
FTSE 250 (MCX) 17,111.97 -2.61%
techMARK (TASX) 3,777.67 -1.98%
FTSE 100 - Risers
Ocado Group (OCDO) 2,890.00p 2.59%
B&M European Value Retail S.A. (DI) (BME) 461.50p 1.25%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,498.00p 0.83%
Tesco (TSCO) 219.60p 0.00%
Hikma Pharmaceuticals (HIK) 2,646.00p -0.15%
Polymetal International (POLY) 1,760.50p -0.17%
Reckitt Benckiser Group (RB.) 7,414.00p -0.22%
Halma (HLMA) 2,272.00p -0.31%
AstraZeneca (AZN) 8,706.00p -0.46%
Spirax-Sarco Engineering (SPX) 10,635.00p -0.47%
FTSE 100 - Fallers
Rolls-Royce Holdings (RR.) 160.15p -11.10%
International Consolidated Airlines Group SA (CDI) (IAG) 99.00p -10.45%
Lloyds Banking Group (LLOY) 23.72p -6.02%
Barclays (BARC) 91.56p -6.02%
NATWEST GROUP PLC ORD 100P (NWG) 91.42p -5.64%
Melrose Industries (MRO) 113.30p -5.58%
Next (NXT) 5,906.00p -5.56%
Whitbread (WTB) 2,085.00p -5.23%
JD Sports Fashion (JD.) 743.60p -4.93%
InterContinental Hotels Group (IHG) 3,933.00p -4.93%
FTSE 250 - Risers
Schroder Oriental Income Fund Ltd. (SOI) 241.00p 1.26%
Plus500 Ltd (DI) (PLUS) 1,540.00p 1.08%
TI Fluid Systems (TIFS) 141.88p 0.98%
Sequoia Economic Infrastructure Income Fund Limited (SEQI) 106.40p 0.95%
XP Power Ltd. (DI) (XPP) 4,490.00p 0.90%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,498.00p 0.83%
SDL (SDL) 714.00p 0.56%
International Public Partnerships Ltd. (INPP) 159.00p 0.51%
Foresight Solar Fund Limited (FSFL) 106.00p 0.47%
Personal Assets Trust (PNL) 45,200.00p 0.44%
FTSE 250 - Fallers
Network International Holdings (NETW) 196.70p -25.83%
Virgin Money UK (VMUK) 73.26p -14.11%
Mitchells & Butlers (MAB) 125.20p -10.95%
National Express Group (NEX) 115.50p -10.81%
Carnival (CCL) 865.20p -8.70%
Wetherspoon (J.D.) (JDW) 779.50p -8.40%
Trainline (TRN) 358.80p -8.00%
Crest Nicholson Holdings (CRST) 175.40p -7.68%
Petrofac Ltd. (PFC) 126.00p -7.62%
TUI AG Reg Shs (DI) (TUI) 273.00p -7.58%
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