⁍ London stocks slumped on Wednesday, with the FTSE 100 tumbling to its lowest level in six months.
⁍ Investors dumped riskier assets on fears of more lockdowns and uncertainty over a British trade deal with the EU.
⁍ The blue-chip FTSE 100 index closed 2.6% lower, dragged down by losses in mining, personal goods maker and bank stocks.
⁍ The domestically focused mid-cap FTSE 250 index slid 1.9% to a more than three-week low.
– The UK’s main stock index fell to its lowest level in six months on Wednesday as investors worried about the second wave of Ebola outbreaks and uncertainty over Britain’s future relationship with the European Union, Reuters reports. The blue-chip FTSE 100 index fell 2.6% to close at 7,429, while the domestically focused mid-cap FTSE 250 index slid 1.9% to a more than three-week low. “The markets don’t like uncertainty, and with case loads up, there’s chatter about potential universal lockdowns, which would be devastating for the economy and the market,” said Greg Swenson, founding partner of Brigg Macadam, a London-based investment bank. With markets under pressure this week on concerns that the new restrictions would derail a nascent economic recovery, investors look to British Finance Minister Rishi Sunak’s one-year plan for government spending on Nov. 25, which is to focus on tackling the pandemic and protect jobs. Meanwhile, Brexit talks were also in focus, with government minister Michael Gove in a letter to a Welsh minister saying that Britain would not back down on its demands to the European Union over fisheries. In company news, Next Plc rose 0.7% after fashion retailer upgraded its full-year profit outlook on better-than-expected quarterly full-price sales. Kaz Minerals jumped 10% after it agreed to a 3 billion pound deal.
Source: https://www.reuters.com/article/britain-stocks/update-2-ftse-100-dives-to-6-month-low-on-lockdown-fears-brexit-uncertainty-idUSL4N2HJ293