Breaking News
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% Upgrade now

Shares briefly slip into correction as coronavirus wreaks havoc

Stock Markets Feb 27, 2020 17:29
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A broker reacts on the IG Index the trading floor
 
UK100
+0.18%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BATS
-1.31%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
HSBA
+0.06%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
RKT
-2.42%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
WPP
+2.49%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
PSN
+5.32%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Sagarika Jaisinghani, Devik Jain and Shashwat Awasthi

(Reuters) - London stocks plummeted on Thursday, with both benchmark indexes briefly confirming a correction, as a sharp rise in the number of coronavirus cases outside China raised fears of a global pandemic and crippled risk appetite.

The FTSE 100 (FTSE) tumbled 3.5% to its lowest since January 2019, with heavyweight banks, miners and oil stocks dragging the most. At its lowest in the session, the index was more than 10% below its peak from just a week ago.

The domestically focussed mid-cap index (FTMC) tanked 4.1%, its biggest one-day drop since June 2016 and a fifth straight day in the red. It also traded more than 10% lower from its recent peak on Feb. 20 during the session.

Britain's hardline stance on trade talks with the European Union heaped pressure on domestic equities already battered by concerns over the virus.

"The sharp declines in equity markets in the last week have turned investor sentiment on its head in a fashion that is almost schizophrenic in nature," CMC Markets analyst Michael Hewson said.

Investors grew increasingly worried about the impact of the virus outbreak on global supply chains, and Standard Chartered joined the likes of Apple (O:AAPL) and Microsoft (O:MSFT) in warning of a hit from the epidemic.

The Asia-focussed bank (L:STAN) fell 3.6% after saying that a key earnings target would take longer to meet as the epidemic added to headwinds in China and Hong Kong.

Rival HSBC (L:HSBA) slipped 4.6% as the stock also traded ex-dividend.

Sectors most exposed to China for revenue were battered, with autos (FTNMX3350) and miners (FTNMX1770) losing 4.2% and 4.8%, respectively.

Both the FTSE 100 and the FTSE 250 are currently on course for their biggest weekly drop since August 2011. European markets and Wall Street also slid into correction territory.

"This is one of the worst weeks in recent memory - and terrifyingly, it's not over yet," Spreadex analyst Connor Campbell remarked.

He also speculated on future near-term moves in equities, pondering over whether the recent trend of buying the dips would entice dealers or if stocks would be stuck in a rut after Thursday's carnage.

"One way or the other, it's hard to see any tangible good news appearing to generate a sustainable rebound," he said.

Economic data for January had been fairly upbeat, but analysts have since sharply cut their forecasts for economic growth in China and the world, with BofA the most recent to sound an alarm.

News-driven moves saw ad firm WPP (L:WPP) skid almost 16%, its biggest one-day loss in more than a quarter of a century, after a disappointing fourth quarter.

Housebuilders (FTNMX3720) endured their worst day in more than two years, dragged by a 6.6% drop in Persimmon (L:PSN) after it reported lower annual profit and said its Chief Executive would step down.

But drugmaker Hikma (L:HIK) outperformed, adding 4.4% after it forecast sales growth in 2020.

Shares briefly slip into correction as coronavirus wreaks havoc
 

Related Articles

Adobe Earnings, Revenue miss in Q4
Adobe Earnings, Revenue miss in Q4 By Investing.com - Oct 01, 2022

Investing.com - Adobe (NASDAQ:ADBE) reported on Thursday fourth quarter earnings that missed analysts' forecasts and revenue that fell short of expectations. Adobe announced...

Add a Comment

Comment Guidelines

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.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email