UPDATE 2-FTSE 100 dives to 6-month low on lockdown fears, Brexit uncertainty

  • Reuters
  • Stock Market News
UPDATE 2-FTSE 100 dives to 6-month low on lockdown fears, Brexit uncertainty
Credit: © Reuters.

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* Johnson under pressure for new lockdown - report

* Sunak to announce one-year spending plan on Nov. 25

* Retailer Next rises on upgrading profit outlook

* FTSE 100 down 2.6%, FTSE 250 drops 1.9% (Adds comment; updates to close)

By Devik Jain

Oct 28 (Reuters) - London stocks slumped on Wednesday, with the FTSE 100 tumbling to its lowest level in six months as investors dumped riskier assets on fears of more lockdowns and uncertainty over a British trade deal with the EU.

After falling as much as 3.5% in afternoon trade, the blue-chip FTSE 100 index .FTSE closed 2.6% lower, dragged down by losses in mining .FTNMX1770 , personal goods maker .FTNMX3760 and bank .FTNMX8350 stocks.

The domestically focused mid-cap FTSE 250 index .FTMC slid 1.9% to a more than three-week low after a media report that Prime Minister Boris Johnson was being put under pressure for a new lockdown to tackle a swiftly accelerating second wave of infections. markets don't like uncertainty, and with case loads up, there's chatter about potential universal lockdowns, which would be devastating for the economy and the market," said Greg Swenson, founding partner of Brigg Macadam, a London-based investment bank.

Swenson also stressed that fiscal policy that supports GDP growth, and more importantly wage growth, are needed along with central bank stimulus to support the real economy.

With markets under pressure this week on concerns that the new restrictions would derail a nascent economic recovery, investors will look to British Finance Minister Rishi Sunak's one-year plan for government spending on Nov. 25, which is to focus on tackling the pandemic and protect jobs. Brexit talks were also in focus, with government minister Michael Gove in a letter to a Welsh minister saying that Britain would not back down on its demands to the European Union over fisheries. company news, Next Plc NXT.L rose 0.7% after the fashion retailer upgraded its full-year profit outlook on better-than-expected quarterly full-price sales. Minerals KAZ.L jumped 10% after it agreed to be acquired by a consortium led by its chairman in a 3 billion pound deal.

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