FTSE 100 marks worst month in over a year on Omicron hit
Reuters
Published Nov 30, 2021 08:33
Updated Nov 30, 2021 17:47
By Bansari Mayur Kamdar and Ambar Warrick
(Reuters) - Britain's blue-chip share index closed above session lows on Tuesday, but marked its worst monthly decline in more than a year as concerns over the Omicron coronavirus variant hammered economically sensitive sectors.
The FTSE 100 fell 0.7% after dropping as much as 1.7% through the day. It shed more than 2% in November.
Most sectors in the FTSE 100 retreated. But mining stocks staged a late recovery, helping the index pare some losses as they tracked a jump in iron ore prices. [IRONORE/]
Prime Minister Boris Johnson said another lockdown was unlikely in light of the new variant, but would keep everything under review.
The domestically focussed mid-cap index fell 1.0%.
Global stock markets slumped after comments from vaccine maker Moderna (NASDAQ:MRNA)'s head that existing COVID-19 vaccines were unlikely to be as effective against the Omicron variant as they have been against the Delta version.
Drugmaker AstraZeneca (NASDAQ:AZN), which also makes COVID-19 vaccines, fell 1.1%.
British airline easyJet (LON:EZJ) slid 1.2% after reporting some softening of trading in its first quarter on COVID-19 outbreaks and the discovery of the Omicron variant. Broader travel and leisure stocks also sank.
"It almost feels like minus 10% for travel stocks is the new black," said Max Kettner, multi-asset strategist at HSBC.
"Sentiment around reopening stocks has hit absolutely rock bottom now and it's not just been a function of last Friday, but it has been a function of two or three months already."
Meanwhile, data showed costs were rising at the fastest rate in over 20 years for firms in Britain's services sector, putting the Bank of England in a tough spot as they face rising inflation and economic risks at the same time.
The internationally focussed FTSE 100 has underperformed its domestic counterpart so far this year, gaining 8.3% compared with the 9.6% rise in the FTSE 250 index.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.