UK midcaps fall on virus woes; Bluechips supported by resource majors

UK midcaps fall on virus woes; Bluechips supported by resource majors

Reuters  | Jul 14, 2020 18:50

UK midcaps fall on virus woes; Bluechips supported by resource majors

By Shashank Nayar and Ambar Warrick

(Reuters) - British mid-cap stocks ended lower on Tuesday as fears of fresh coronavirus-driven lockdowns overshadowed a fledgling economic recovery, while resource stocks supported the bluechip index.

The blue-chip FTSE 100 (FTSE) ended largely unchanged, but well above session lows. Energy and mining stocks were the best performers on the index for the day, helped by weakness in the pound .

BP Plc (L:BP) provided the biggest boost to the index after its partially owned Norwegian oil firm Aker BP (OL:AKERBP) on Tuesday beat second-quarter pretax profit expectations.

Still, most other bluechip sectors ended lower as new coronavirus restrictions in California pressured technology stocks.

Tech-oriented investment trust Polar Capital Technology Trust (L:PCT) was the biggest drag on Britain's midcap index (FTMC), which lost 1.2% for the day.

Online gadget retailer AO World (L:AO) bottomed out the midcap index (FTMC) despite reporting a large jump in annual profit, as it warned of a fall in consumer confidence.

Online supermarket and technology group Ocado (L:OCDO) slipped 2.2% despite reporting a 27.2% jump in first-half retail sales.

Speculation over a second wave of British coronavirus infections next winter rattled investors hoping for a quick economic recovery from the pandemic.

Local stocks have rallied from March lows amid slightly improving economic readings, while the government's scaling back of virus-related curbs also looked to help a recovery.

Still, markets remain wary of a surge in COVID-19 cases after the reopening, as seen in the United States and other major economies.

"With the UK being in the early stages of reopening up the economy, there is a fear among investors that if a threshold is exceeded, coronavirus cases might spike," said David Madden, analyst at CMC Markets.

Data on Tuesday showed UK gross domestic product rose 1.8% in May after slumping by a record 20.3% in April. But consumer spending remains far below normal levels and economists are cautious about the longevity of any recovery.

© Reuters. FILE PHOTO: The Canary Wharf financial district is seen from the construction site of 22 Bishopsgate in London

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Google Monster
Google Monster

Creating and manipulating volatility is the norm  ... (Read More)

Jul 14, 2020 11:58 GMT· Reply
Tim Platts
Tim Platts

Usual rubbish from the papers to aid their wealthy clients swing trade positions and probably those from the US and China - the two countries bolstering their own financial positions to further dominate their global positions. Lets hope they both fall hard one day.  ... (Read More)

Jul 14, 2020 08:10 GMT· Reply
Beebs Elite
Beebs Elite

What’s the point in this fear mongering. No Government advisors have warnes of a coming second wave. The country will continue to re-open.  ... (Read More)

Jul 14, 2020 08:01 GMT· Reply
Discussion
Write a reply...
Please wait a minute before you try to comment again.

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.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.

';