London open: Stocks in the red as oil prices slide
London stocks fell in early trade on Monday as oil prices slid and as the UK coronavirus death toll continued to rise.
At 0830 BST, the FTSE 100 was down 1.8% at 5,413.09.
Spreadex analyst Connor Campbell said: "After an initial flurry higher the European markets were dragged lower on Monday, the unavoidable fact of oil’s continued decline especially hurting the FTSE.
"With demand collapsing, Brent crude tumbled a further 6.6% as the week got underway, taking the black stuff to $23.20 per barrel. Forcing BP and Shell down more than 3% apiece, this in turn wiped another 90 points off the UK index, leaving it scrabbling to keep above 5,400 - a rough mid-point between last week’s highs and lows."
Campbell pointed out that the FTSE’s losses came despite a drop in the pound, which fell 0.9% to $1.2357. "That does keep the brunt of last week’s remarkable rebound intact - while against the euro sterling drifted half a percent lower," he said.
Investors were also digesting news that the People’s Bank of China has cut its seven-day reverse repo rate - which covers short-term loans - to 2.2% from 2.4%. This marked the biggest cut in half a decade.
In equity markets, Rolls-Royce was the worst performer on the FTSE 100 as the Telegraph reported that the aerospace and defence engineer was facing a cash flow crisis due to the collapse in air travel caused by the coronavirus.
Budget airline easyJet slid as it said it was grounding its entire fleet in response to "unprecedented" travel restrictions and lockdowns imposed by governments in response to the coronavirus pandemic. The company said it had reached agreement with the Unite union on furlough arrangements for its cabin crew. The deal would be effective from April 1 for two months and meant that crew will be paid 80% of their average pay through the government's job retention scheme.
Convenience food group Greencore fell after saying it was suspending its full-year guidance and scrapping its interim dividend amid a drop in demand for its food to go products due to the coronavirus outbreak.
Shopping centre owner Hammerson tumbled after it pulled its final dividend and guidance as government lockdowns forced many of its tenants to shutter their stores.
On the upside, Pennon gained ground as it said its performance for 2019/20 was in line with management expectations, with revenue down due to prolonged wet weather.
Johnson Matthey rallied even as the specialty chemicals company warned annual results would miss expectations after the coronavirus crisis reduced demand and delayed shipments.
Market Movers
FTSE 100 (UKX) 5,413.09 -1.76%
FTSE 250 (MCX) 14,499.56 -1.83%
techMARK (TASX) 3,204.09 -1.30%
FTSE 100 - Risers
Pennon Group (PNN) 1,117.50p 4.20%
Johnson Matthey (JMAT) 1,804.50p 2.62%
Morrison (Wm) Supermarkets (MRW) 183.75p 2.00%
Rentokil Initial (RTO) 366.50p 1.27%
Polymetal International (POLY) 1,313.00p 1.04%
Smith (DS) (SMDS) 279.80p 0.65%
AstraZeneca (AZN) 6,846.00p 0.60%
BT Group (BT.A) 120.02p 0.52%
Hargreaves Lansdown (HL.) 1,363.00p 0.44%
SSE (SSE) 1,266.00p 0.40%
FTSE 100 - Fallers
Rolls-Royce Holdings (RR.) 315.70p -13.44%
Meggitt (MGGT) 278.50p -10.16%
Melrose Industries (MRO) 95.92p -9.68%
Next (NXT) 3,711.00p -7.41%
Standard Life Aberdeen (SLA) 220.60p -5.52%
Centrica (CNA) 37.86p -5.28%
JD Sports Fashion (JD.) 452.00p -5.26%
M&G (MNG) 127.80p -5.05%
Ashtead Group (AHT) 1,599.00p -4.99%
Legal & General Group (LGEN) 199.10p -4.92%
FTSE 250 - Risers
Cranswick (CWK) 3,876.00p 11.44%
PureTech Health (PRTC) 228.00p 6.05%
Henderson Smaller Companies Inv Trust (HSL) 685.00p 4.58%
Kainos Group (KNOS) 592.00p 3.14%
TI Fluid Systems (TIFS) 159.60p 2.97%
Worldwide Healthcare Trust (WWH) 2,745.00p 2.23%
Go-Ahead Group (GOG) 765.50p 2.07%
Fisher (James) & Sons (FSJ) 1,310.00p 2.02%
Capital & Counties Properties (CAPC) 155.00p 2.01%
Monks Inv Trust (MNKS) 778.00p 1.97%
FTSE 250 - Fallers
Cineworld Group (CINE) 43.00p -19.60%
Dixons Carphone (DC.) 67.88p -15.76%
Aston Martin Lagonda Global Holdings (AML) 240.40p -13.56%
Just Group (JUST) 50.85p -10.48%
Weir Group (WEIR) 625.60p -9.99%
Hochschild Mining (HOC) 105.50p -9.29%
WH Smith (SMWH) 986.00p -9.04%
Premier Oil (PMO) 15.93p -8.60%
Provident Financial (PFG) 201.40p -8.58%
SSP Group (SSPG) 274.50p -8.19%