FTSE tumbles as government stalls on plans

The London markets tumbled after the government pushed back plans to reopen a raft of leisure venues.

Investors baulked after it was confirmed that casinos, bowling alleys and music venues have had reopening plans delayed due to concerns over the spread of the coronavirus.

Trading sentiment had already been fragile after it was announced that the economy of the 19-country Eurozone shrank by a record 12.1% during the second quarter.

The FTSE 100 closed 92.23 points lower at 5,897.76p at the end of trading yesterday.

Leisure firms dropped into the red after the government put their reopening plans for this weekend on ice, with Hollywood Bowl and casino owner Rank Group both slumping.

Cineworld also dipped, falling by 1.42p to 38.2p, after it was announced that face coverings will be mandatory in cinemas and other indoor venues from August 8.

The FTSE was also pressed down by the continued strength in the value of sterling, which hit a new four-month high against the dollar.

David Madden, market analyst at CMC Markets UK, said: “Eurozone stocks were in the red also as there are worries about a second wave of Covid-19. ”

The pound rose 0.29% versus the US dollar at 1.313 and was up 0.48% against the euro at 1.110.

The other major European markets fared slightly better than London, but still closed in the red after the eurozone confirmed its greatest economic decline since records started in 1995.

The German Dax decreased by 0.54%, while the French Cac moved 1.43% lower.