Dow Jones proves FTSE’S ‘white knight’

Traders in Europe started the day in the same spirits as they had the rest of the week – selling over concerns that Covid-19 was turning into a pandemic, with cases confirmed across the continent. But once America woke up, it helped drag Europe back into the black, ending the day on a positive note.

The FTSE 100 dipped below 7,000 points for the first time in more than a year, but closed up 24.59 points, or 0.35 per cent at 7,042.47.

Spreadex analyst Connor Campbell said: “The Dow Jones rode in like something of a white knight on Wednesday afternoon, rescuing Europe from its intraday lows.”

Several companies gave updates on the impact the coronavirus was having on their businesses, including Diageo, which warned that up to £200 million could be knocked from earnings as demand has plummeted across Asia. Shares closed down 26.5p at 2,933.5p.

Airport cafe operator SSP said it too was feeling the effects on business in the Far East, adding it expects to take a hit of £10m to £12m. Its shares closed down 29p at 568p.

But the big corporate news came with jobs as Virgin Money, Direct Line, Lloyds Bank, Ted Baker and the Restaurant Group all said they would be making potential cuts. The latter took the heaviest hit from investors, with shares closing down 8.5p at 109p.

Lastly, oil and gas engineering services business Plexus Holdings said its Russian licensee LLC Gusar placed an order for an additional set of Pos-grip exploration rental jack-up drilling wellhead equipment. Its shares were flat at 26.5p.