UPDATE 2-London stocks fall as Brexit, coronavirus concerns weigh
(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)
* Johnson Matthey slips as half-year profit slumps
* Direct Brexit talks suspended after EU team member tests COVID positive
* Royal Mail jumps on raising annual revenue outlook
* Kingfisher dips as Q4 sales growth slows
* FTSE 100 down 0.8%, FTSE 250 falls 1% (Adds comment; updates share prices)
By Devik Jain
Nov 19 (Reuters) - London stocks slipped on Thursday, as uncertainty over a post-Brexit trade deal with the European Union and surging COVID-19 infections sparked fears of more damage to an already-faltering domestic economic recovery.
The blue-chip FTSE 100 index .FTSE closed 0.8% lower, with chemicals maker Johnson Matthey Plc JMAT.L tumbling 5.6% after it posted a near 90% slump in half-year profit and refrained from providing an outlook for 2021. such as banks .FTNMX8350 , energy .FTNMX0530 , and mining .FTNMX1770 stocks were among the biggest drags to the index.
The domestically focused mid-cap FTSE 250 index .FTMC ended 1% lower. jumping more than 13% in the last two weeks on optimism over a vaccine, the FTSE 100 index retreated this week on concerns that swiftly accelerating COVID-19 cases and a stalemate over a Brexit deal might derail a nascent economic recovery.
"The reality has hit home for investors that we are seeing greater disruptions especially in areas of Europe, which partly was to be expected, given that we are going into winter," said Azad Zangana, senior European economist and strategist at Schroders (LON: SDR ).
"The FTSE 100 is a very unloved market right now, and once the stigma attached to the UK is removed by the certainty of a trade deal, we might see more of a return to normal in terms of investors putting some money back towards the UK."
Chief Brexit negotiators suspended direct talks on Thursday after a EU team member tested positive for COVID-19, with a Finnish EU minister saying talks were at "critical stage" but could still succeed. Mitie Group MTO.L slipped 6.6%, after it posted a 35% fall in first-half profit and scrapped its interim dividend. improvement retailer Kingfisher Plc KGF.L fell 2.7% after saying fourth-quarter underlying sales growth has slowed so far. Mail Plc RMG.L jumped 3.3%, after raising its annual revenue forecast due to an online shopping boost.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb
Drop an image here or