London midday: Stocks extend losses amid surge in US Covid cases
London stocks were sharply lower by midday on Wednesday amid growing concerns about a spike in new coronavirus cases in the US.
The FTSE 100 was down 2.2% at 6,179.45, extending earlier losses.
Spreadex analyst Connor Campbell said: "In the last 24 hours seven states have reported record coronavirus hospitalisations - Arizona, Arkansas, California, North Carolina, South Carolina, Tennessee and Texas. The Lone Star state also saw an all-time high case increase on Tuesday, something that has become almost a daily occurrence.
"It is a damning indictment of the Trump administration, and its laissez-faire attitude towards the pandemic from the off. This isn’t a second wave, but rather a continuation of the first.
"Understandably investors were rather worried about this news, especially since it follows on from the recent outbreak in Beijing, a new cluster of cases in Tokyo, a record one-day total for new cases in Mexico and Monday’s reports that Germany’s R rate has crossed the crucial 1 level due to thousands of cases at an abattoir."
A report suggesting that European Union countries could bar entry to Americans because the US has failed to control the coronavirus pandemic was also denting the mood.
In equity markets, oilfield services firm Petrofac was weaker after saying that its group order backlog fell 13% at the end of May as it warned of a significant impact on its engineering division from the coronavirus pandemic.
Housebuilder Crest Nicholson suffered heavy losses after it reported a slump in half-year revenue and profit as it took a hit from the Covid-19 pandemic, and said full-year profit was set to fall.
Pub groups Mitchells & Butlers and JD Wetherspoon were both lower, having rallied strongly on Tuesday ahead of Prime Minister Boris Johnson’s announcement about the reopening of pubs on 4 July. Wetherspoons was also in focus after it confirmed it had secured a £48.3m loan under the government’s coronavirus loan scheme as it prepared to open 750 pubs on July 4.
Shares of AG Barr fizzed lower after the Irn-Bru maker said late on Tuesday that its sale and distribution contract with US energy drinks company Rockstar Inc had been terminated and that trading continues to be dented by the lockdown.
On the upside, gambling company GVC advanced after saying that sports betting was reviving in line with its expectations as events resumed and that it was encouraged by early signs of customers returning to its retail outlets as Covid-19 restrictions are relaxed.
In broker note action, Pets at Home was boosted by an upgrade to ‘buy’ at Citi, but Kingfisher, Next and Dunelm were all hit by a downgrade to ‘sell’ by the same outfit.
Market Movers
FTSE 100 (UKX) 6,179.45 -2.23%
FTSE 250 (MCX) 17,353.65 -1.69%
techMARK (TASX) 3,731.71 -2.24%
FTSE 100 - Risers
Polymetal International (POLY) 1,591.00p 1.02%
Fresnillo (FRES) 860.40p 0.80%
Sainsbury (J) (SBRY) 205.20p 0.29%
GVC Holdings (GVC) 787.80p -0.05%
SEGRO (SGRO) 893.80p -0.16%
Ocado Group (OCDO) 1,977.00p -0.20%
Intermediate Capital Group (ICP) 1,284.00p -0.39%
Flutter Entertainment (FLTR) 11,325.00p -0.44%
Auto Trader Group (AUTO) 530.20p -0.53%
Homeserve (HSV) 1,303.00p -0.53%
FTSE 100 - Fallers
Compass Group (CPG) 1,113.50p -5.40%
Smith & Nephew (SN.) 1,541.00p -4.29%
Kingfisher (KGF) 217.50p -4.14%
BAE Systems (BA.) 490.00p -3.73%
Next (NXT) 5,010.00p -3.62%
Persimmon (PSN) 2,278.00p -3.56%
Diageo (DGE) 2,702.50p -3.48%
Smith (DS) (SMDS) 330.90p -3.22%
Hargreaves Lansdown (HL.) 1,639.00p -3.13%
London Stock Exchange Group (LSE) 8,104.00p -3.13%
FTSE 250 - Risers
Vivo Energy (VVO) 86.70p 1.76%
PPHE Hotel Group Ltd (PPH) 1,175.00p 1.73%
Gamesys Group (GYS) 874.00p 1.16%
FDM Group (Holdings) (FDM) 937.00p 0.86%
Sanne Group (SNN) 644.00p 0.62%
AO World (AO.) 138.80p 0.58%
NextEnergy Solar Fund Limited Red (NESF) 107.70p 0.47%
Trainline (TRN) 500.50p 0.38%
Provident Financial (PFG) 184.70p 0.38%
Dechra Pharmaceuticals (DPH) 2,880.00p 0.35%
FTSE 250 - Fallers
Petrofac Ltd. (PFC) 196.65p -10.78%
Crest Nicholson Holdings (CRST) 227.40p -9.33%
Micro Focus International (MCRO) 438.70p -7.45%
Energean (ENOG) 451.00p -6.72%
Wetherspoon (J.D.) (JDW) 1,057.00p -6.04%
PureTech Health (PRTC) 276.00p -5.96%
Watches of Switzerland Group (WOSG) 283.00p -5.67%
Ascential (ASCL) 287.80p -5.33%
Mitchells & Butlers (MAB) 208.50p -5.23%
TUI AG Reg Shs (DI) (TUI) 395.10p -5.21%