Reuters | Feb 25, 2020 19:44
By Sagarika Jaisinghani
(Reuters) - London-listed stocks fell sharply to fresh five-month lows on Tuesday as an increase in coronavirus cases outside China triggered a second day of selling across global markets.
The blue-chip FTSE 100 (FTSE) lost 1.9%, a day after logging its worst session since 2015 with reports of the virus spreading further, notably in Europe and Iran.
Only a handful of stocks ended the day in positive territory while banks, consumer goods and energy companies weighed the most on the UK blue chip benchmark.
While European markets had made timid gains at the open, sentiment deteriorated through the session.
"The morning bounce in European markets and U.S. futures is a distant memory, as indices push to new lows thanks to the ongoing spread of the coronavirus", Chris Beauchamp, chief market analyst at IG commented.
Wall Street, which also suffered its worst day in two years during the previous session, briefly opened higher but its three major stock indexes quickly fell about 1%.
Fears of a pandemic had wiped $1.5 trillion off the value of world equity markets on Monday.
"The colossal losses that were racked up yesterday encouraged some bargain hunting at the start of today’s session, but then old concerns crept in, hence why we are offside again", said analyst David Madden at CMC Markets UK.
Among the few stocks making it to the black on the FTSE 100 was insurer Prudential Plc (L:PRU), which ended the day flat after hedge fund Third Point amassed a stake of over $2 billion and called on the company to split into two.
Credit investor Pollen Street Secured Lending (L:PSSL) soared 6.7% to its highest since July 2017 after saying it was in talks with Waterfall Asset Management about a sale.
Building materials supplier SIG Plc (L:SHI) slid 18% to the bottom of the mid-cap index after saying it was replacing Chief Executive Meinie Oldersma as it seeks to stem a slide in its business caused by a weak European construction market.
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.
Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.
More content, faster quotes and charts, and a smoother experience is available only on the App.