London midday: Stocks firmly in the red amid tightening Covid restrictions
London stocks were still firmly in the red by midday on Wednesday amid growing concerns about tightening coronavirus restrictions across Europe and calls for another national lockdown in the UK.
The FTSE 100 was down 1.8% at 5,627.15.
Investors were mulling over news that German Chancellor Angela Merkel wants all bars and restaurants to close for a month from 4 November to help slow the spread of Covid-19. If the measures are agreed, shops would be allowed to remain open, while restaurants would only be allowed to offer takeaways.
Meanwhile, there were also reports that France is considering a month-long nationwide lockdown, with President Macron due to make an announcement later in the day.
On home shores, Prime Minister Boris Johnson was said to be under pressure for a second national lockdown after the UK recorded its highest Covid-19 death toll since May. According to reports, Sage analysis suggests that tier three, the highest level of restrictions, may be needed across all of England by mid-December.
Spreadex analyst Connor Campbell said investors’ Covid-19 fears are "attacking stock prices in ways not seen since the start of the Western phase of the pandemic back in March".
"As has been the case since March, investors’ concerns aren’t over the number of daily cases and deaths per se, but the severity of the restrictions that will greet each new leap and the crushing impact said measures will have on the global economy. Just when countries had tried to get back to their feet during the third quarter, as it set to be evidenced by the latest GDP figures on Thursday and Friday.
"Bags packed and gas tank full, investors fled the markets with the speed and panic of a family trying to escape a disaster scene."
In equity markets, property stocks British Land and Land Securities slumped amid fears of another lockdown. CMC Markets analyst Michael Hewson said investors will be worried "that more lockdowns will hollow out their real estate portfolios even further".
Travel and leisure stocks were also under the cosh, with British Airways owner IAG, InterContinental Hotels, Premier Inn owner Whitbread, Upper Crust owner SSP, Cineworld, Carnival and Wizz Air all lower.
Brick manufacturer Ibstock fell sharply despite reporting a recovery in demand in the third quarter.
On the upside, clothing retailer Next rallied as it lifted full-year profit guidance after a better-than-expected rise in third quarter sales. The company forecast a pre-tax profit of £365m, up £65m from a central scenario given in September.
Online supermarket Ocado was also a high riser amid expectations there will be a boost in demand if a second lockdown occurs.
Shares of Aston Martin Lagonda rose after Mercedes-Benz said it would be lifting its stake in the company to 20% over the next few years.
Kaz Minerals rallied after it agreed to be bought by Nova Resources in a deal that values the copper company at £3bn.
Medical products company ConvaTec gained after saying it now expects to deliver full-year revenue growth at the higher end of guidance following a better-than-expected performance in the third quarter.
Market Movers
FTSE 100 (UKX) 5,627.15 -1.78%
FTSE 250 (MCX) 17,318.99 -1.53%
techMARK (TASX) 3,616.84 -1.58%
FTSE 100 - Risers
Rolls-Royce Holdings (RR.) 96.14p 27.92%
Next (NXT) 6,306.00p 3.55%
Ocado Group (OCDO) 2,379.00p 2.90%
Admiral Group (ADM) 2,781.00p 0.87%
Flutter Entertainment (FLTR) 12,375.00p 0.53%
Compass Group (CPG) 1,083.50p 0.28%
DCC (DCC) 5,130.00p 0.12%
Antofagasta (ANTO) 1,037.00p 0.10%
AstraZeneca (AZN) 8,060.00p 0.05%
B&M European Value Retail S.A. (DI) (BME) 487.90p 0.00%
FTSE 100 - Fallers
British Land Company (BLND) 345.30p -5.40%
Prudential (PRU) 951.60p -4.89%
Intermediate Capital Group (ICP) 1,167.00p -4.73%
Johnson Matthey (JMAT) 2,221.00p -3.98%
Anglo American (AAL) 1,818.00p -3.93%
Taylor Wimpey (TW.) 106.30p -3.93%
Evraz (EVR) 357.50p -3.90%
Smith & Nephew (SN.) 1,370.50p -3.89%
Legal & General Group (LGEN) 178.70p -3.74%
Land Securities Group (LAND) 506.60p -3.72%
FTSE 250 - Risers
Kaz Minerals (KAZ) 625.00p 9.50%
Aston Martin Lagonda Global Holdings (AML) 58.05p 6.51%
Convatec Group (CTEC) 194.60p 5.25%
Apax Global Alpha Limited (APAX) 162.20p 2.01%
CMC Markets (CMCX) 323.00p 1.89%
JPMorgan Japanese Inv Trust (JFJ) 654.00p 1.24%
Trainline (TRN) 279.40p 1.23%
Ferrexpo (FXPO) 181.60p 1.17%
AJ Bell (AJB) 422.00p 1.08%
Law Debenture Corp. (LWDB) 511.00p 0.99%
FTSE 250 - Fallers
Ibstock (IBST) 161.60p -9.67%
Cineworld Group (CINE) 23.76p -9.00%
FirstGroup (FGP) 43.50p -7.37%
Micro Focus International (MCRO) 229.20p -6.75%
Network International Holdings (NETW) 197.60p -6.44%
Wizz Air Holdings (WIZZ) 3,118.00p -5.52%
SSP Group (SSPG) 177.30p -5.09%
Carnival (CCL) 862.20p -5.06%
Wetherspoon (J.D.) (JDW) 869.00p -4.92%
Virgin Money UK (VMUK) 91.10p -4.79%