Reuters | Feb 14, 2020 17:33
By Muvija M and Shashwat Awasthi
(Reuters) - UK blue-chip shares fell for a second day on Friday after AstraZeneca and RBS reported underwhelming results, while investors remained unsettled because of concerns over the impact of the coronavirus outbreak on the global economy.
Global markets are expecting stimulus from central banks as new coronavirus showed no signs of peaking. U.S. Federal Reserve Chair Jerome Powell had last week warned that the economic impact from the outbreak could spill over globally.
The FTSE 100, with its larger exposure to commodity prices, has lagged its European counterpart, which has hovered at record high levels for most of the week, as investors shrugged off fears over the new virus.
London's main index has also been derailed as commodity prices take a hit from slower demand from China post the health crisis.
Among corporate news, AstraZeneca (L:AZN) dropped over 4.3% as its quarterly earnings failed to match up to market expectations.
"Corporate updates triggered the declines in the pharma sector as well as the banking industry. Dealers are still worried about the health emergency in China as the situation isn't showing any signs of improving," CMC Markets analyst David Madden, said.
Royal Bank of Scotland (L:RBS) fell 6.8%, ending the day at the bottom of the bluechip index, after its new top boss set out a new strategy that included cutting back the size of its loss-making investment bank and renaming the company NatWest.
"Every rose has its thorn; scratch beneath every RBS quarterly update and you'll find a sting or two," Markets.com analyst Neil Wilson wrote in note.
Warehousing specialist Segro (L:SGRO) outperformed the index, rising 1.5% and hitting a fresh high after it reported a jump in full-year profit and increased its dividend.
Among smaller stocks, biotechnology company Novacyt (L:NCYT) jumped 29% after it said it would launch a certified test for the new coronavirus next week.
Mosman Oil and Gas (L:MSMN) tanked 36% after it announced capital raise and updated the markets on its corporate strategy, which included the sale of some of its projects.
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.
More markets insights, more alerts, more ways to customize assets watchlists only on the App
More content, faster quotes and charts, and a smoother experience is available only on the App.