U.K. stocks hammered as coronavirus cases spiral higher and Boris Johnson tests positive

U.K. stocks were hammered on Friday bringing a three-day rally to an abrupt end as global coronavirus cases spiralled and prime minister Boris Johnson tested positive.

کد خبر: ۹۶۸۴۸۴

تاریخ: ۰۸ فروردين ۱۳۹۹ - ۲۰:۱۲

The FTSE 100 UKX, -5.189% , which had enjoyed three days of gains, plunged 5.5% on Friday as investors looked to take some profits at the end of a strong week. The domestically-exposed FTSE 250 MCX, -4.123% fell 4.2%. Tumbling oil prices and a strengthening pound ensured that the internationally-focused energy-heavy FTSE 100 index had a worse day than other major European indexes. Brent crude front month futures BRN.1, -6.074% fell 7.2% to $24.44 per barrel, a 17-year low, due to coronavirus-driven demand problems and a global price war.

The pound GBPUSD, 1.172% continued its recovery from the lowest levels since 1985, climbing 0.5% to $1.2269 on Friday.

Coronavirus cases around the world continued to surge, curtailing positive investor sentiment. The U.S. has now surpassed China as the country with the most coronavirus cases, rising above 85,500. The U.K. reported its biggest daily rise in coronavirus deaths on Friday - with 181 - taking the death toll up to 759. Spain also reported its largest daily jump in fatalities - rising by 769 to 4,858.

British prime minister Boris Johnson became the first world leader to reveal they have tested positive for the virus, sparking concerns over the government’s ongoing response to the crisis. Johnson said he was self-isolating but would continue to lead the nation’s “fightback against the virus”, making use of technology. Health secretary Matt Hancock also tested positive and will be self-isolating while continuing to work.

The rising number of cases, now including high profile world leaders, along with the end of the week, saw global stocks hit hard on Friday afternoon.

OANDA analyst Craig Erlam said it made sense that investors were taking profit ahead of the weekend, given the fast-changing nature of the pandemic.

“We may have had a good run this week but the weekend can feel like a long time at moments like this and the numbers we’re getting from the U.S., which now has more cases than China or Italy, are getting uglier by the day.”

“I fear a few more shocks lie ahead as we get closer to peak coronavirus in countries like the U.S., U.K. and more.”

Stocks to watch

Cruise operator Carnival CCL, -19.109% plunged 21% in early trading as the hard-hit industry was seemingly left out of the $2 trillion U.S. stimulus package.

As the U.K.’s national lockdown took hold and the economic impact began being felt across the country, shares in house builder Persimmon PSN, -10.077% tumbled 11.2% and retail property company Hammerson HMSO, -14.922% , dropped 13.8%.