Bullish start hits buffers as FTSE tumbles

The FTSE 100 tumbled after a bullish start to the week.

Europe’s largest markets lost most of the significant gains they had racked up on Wednesday, after positive news about an antiviral drug from US firm Gilead stirred optimism.

Cautious statements from economists and the central banks took the steam out of the markets.

As a result, the FTSE 100 closed 214.04 points lower at 5,901.21p at the end of trading yesterday.

Neil Wilson, chief market analyst at Markets.com, said: “Assets have taken a bit of a beating today amid a slew of pretty rotten economic data and an European Central Bank (ECB) presser that maybe wasn’t all that.”

The ECB held rates, in line with forecasts, as it warned that the currency region could contract by between 5% and 12% this year, depending on how the crisis plays out.

The German Dax decreased by 2.22%, while the French Cac moved 2.12% lower.

Across the Atlantic, the Dow Jones sank on the opening bell after the latest US jobless claims reading of 3.83 million, taking the level to above 30 million since the pandemic took hold.

The value of the pound rose 0.91% versus the US dollar at 1.258 and was up 0.44% against the euro at 1.151.

The price of a barrel of Brent crude oil increased 13.3% to 25.74 US dollars.

Supermarket giant Sainsbury’s dipped after it warned over a coronavirus hit to profits of more than £500 million despite surging grocery sales (see bottom right).

Shares were 9.3p lower at 198.1p.