London close: Stocks finish weaker amid Covid, economic concerns

London equity markets closed weaker on Thursday, after a gloomy economic outlook from the US Federal Reserve and amid concerns about rising coronavirus cases, with ex-dividend stocks pacing the decline.

The FTSE 100 ended the session down 1.61% at 6,013.34, and the FTSE 250 was off 0.49% at 17,496.43.

Sterling was stronger at the end of the trading day, last rising 0.55% against the dollar to $1.3170, and advancing 0.4% on the euro to €1.1109.

“Equity markets are deep in the red on the back of the Fed minutes last night,” said CMC Markets analyst David Madden.

“The update warned the US economy could face a ‘considerable’ negative impact over the medium term on account of the pandemic.

“The Fed also repeated the need for fiscal stimulus, as they feel they can’t tackle the crisis alone.”

Madden said the absence of a coronavirus relief package was playing on traders’ minds - even more so in light of the Fed’s comments.

“It seems a bit strange that traders are all of a sudden worked up about the Fed’s bearish outlook, when it has been known for a while now.

“The US unemployment benefit scheme ended in late July, so it’s a surprise that dealers are now running scared.

“Nonetheless, the mood is bearish and in terms of index points, the biggest fallers on the FTSE 100 are mining and energy stocks.”

Meanwhile, Sino-US trade relations were in focus again after a Chinese Commerce Ministry official said talks between the two will be held soon.

According to reports, the unnamed official said the countries had decided to hold the talks - which were postponed last week - in the coming days, although no further details were given.

In equity markets, ex-dividends were a drag, with M&G down 2.87%, Evraz off 6.02%, and Standard Life Aberdeen 4.06% weaker.

Joining them were Mondi, Anglo American and Plus500, which were down 5.35%, 4.29% and 0.95% respectively.

Antofagasta was 5.57% weaker after the Chilean copper miner posted a 22.4% fall in first-half earnings on weaker prices and sales but still paid a reduced dividend.

On the upside, Frasers Group, formerly Sports Direct, gained 13.34% after saying it plans to spend £100m on its digital elevation strategy and forecasting a 10-30% improvement in underlying core earnings next year as 2020 profits fell by a fifth due to the Covid-19 pandemic.

AO World added 3.42% as the online electrical goods retailer reported strong sales growth for the four months to the end of July as it continues to benefit from increased online shopping despite the reopening of stores since the easing of lockdown measures.

Market Movers

FTSE 100 (UKX) 6,013.34 -1.61%
FTSE 250 (MCX) 17,496.43 -0.49%
techMARK (TASX) 3,792.49 -0.98%

FTSE 100 - Risers

British Land Company (BLND) 356.00p 1.71%
SEGRO (SGRO) 957.80p 1.40%
Land Securities Group (LAND) 555.00p 1.28%
Ocado Group (OCDO) 2,418.00p 1.26%
Rightmove (RMV) 618.20p 0.95%
InterContinental Hotels Group (IHG) 4,029.00p 0.83%
Sainsbury (J) (SBRY) 188.75p 0.75%
Auto Trader Group (AUTO) 552.40p 0.44%
National Grid (NG.) 876.20p 0.37%
Intertek Group (ITRK) 5,860.00p 0.14%

FTSE 100 - Fallers

Evraz (EVR) 324.70p -6.10%
M&G (MNG) 169.05p -6.08%
Standard Life Aberdeen (SLA) 247.40p -6.04%
Antofagasta (ANTO) 1,082.50p -5.75%
International Consolidated Airlines Group SA (CDI) (IAG) 190.60p -5.17%
Smith (DS) (SMDS) 269.90p -5.07%
Mondi (MNDI) 1,461.00p -4.70%
Anglo American (AAL) 1,861.00p -4.34%
Glencore (GLEN) 168.86p -4.12%
Melrose Industries (MRO) 100.10p -4.12%

FTSE 250 - Risers

Frasers Group (FRAS) 345.60p 13.02%
Workspace Group (WKP) 573.00p 7.81%
Bank of Georgia Group (BGEO) 865.00p 7.45%
Shaftesbury (SHB) 507.00p 4.62%
Greencore Group (GNC) 126.00p 4.22%
Big Yellow Group (BYG) 1,049.00p 3.86%
Derwent London (DLN) 2,866.00p 3.62%
Coats Group (COA) 55.50p 3.54%
AO World (AO.) 199.80p 3.42%
Unite Group (UTG) 960.50p 2.95%

FTSE 250 - Fallers

Aston Martin Lagonda Global Holdings (AML) 57.60p -9.36%
Capita (CPI) 30.15p -8.72%
TI Fluid Systems (TIFS) 170.20p -8.10%
John Laing Group (JLG) 283.00p -6.97%
National Express Group (NEX) 128.70p -5.02%
TUI AG Reg Shs (DI) (TUI) 296.40p -4.63%
Royal Mail (RMG) 194.75p -4.58%
Hammerson (HMSO) 49.74p -4.35%
Vesuvius (VSVS) 395.60p -4.26%
Ferrexpo (FXPO) 191.80p -4.10%