Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

UPDATE 2-London stocks retreat as coronavirus, Brexit doubts weigh

Published 10/13/2020, 04:53 PM
Updated 10/14/2020, 12:20 AM
© Reuters.

(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
* Johnson & Johnson suspends COVID-19 vaccine trials
* All eyes on EU summit for progress on Brexit trade deal
* French Connection Group tumbles as sales plunge
* FTSE 100 falls 0.5%, FTSE 250 drops 1.5%

(Updates to close)
By Devik Jain
Oct 13 (Reuters) - London's mid-cap index fell from
four-month highs on Tuesday on concerns around the timeline of a
COVID-19 vaccine as well as uncertainties over a Brexit trade
deal with the European Union ahead of a self-imposed UK
deadline.
The domestically focussed FTSE 250 .FTMC , considered a
barometer for Brexit sentiment, sank 1.5%, while the blue-chip
FTSE 100 .FTSE slipped 0.5%.
Prime Minister Boris Johnson and the head of the European
Commission are set to discuss Brexit negotiations on Wednesday
afternoon ahead of the EU summit on Oct. 15, while the German
Europe minister said the EU will have to step up preparations
for a no-deal possibility. Sentiment was also hit by news that Johnson & Johnson
JNJ.N had paused its COVID-19 vaccine candidate clinical
trials due to an unexplained illness in a study participant,
delaying a high-profile effort to contain the global pandemic.
"Because of how important the vaccine would be for various
economies, a delay in that would mean possibly having to live
with the virus for longer and maybe more negative economic
outlook," said Simona Gambarini, markets economist at Capital
Economics.
Signs of progress on a COVID-19 vaccine and a raft of global
stimulus have helped UK equity benchmarks rise from their
coronavirus-driven lows in March, but they have lagged their
U.S. and European peers as data points to a slowing domestic
economic recovery.
Figures on Tuesday showed Britain's unemployment rate rose
more than expected in the three months to August to its highest
in more than three years and new restrictions announced on
Monday are likely to make that level worse, analysts said.
Separate surveys showed British consumers ramped up their
spending sharply last month, while grocery sales growth
accelerated in September. Shares of Tesco Plc TSCO.L and WM Morrison Supermarkets
Plc MRW.L closed up more than 1%.
In company news, clothing retailer French Connection Group
Plc FCCN.L tumbled 19.6% after posting a plunge in first-half
sales due to the health crisis.

Latest comments

Risk Disclosure: 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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.