Footsie slump sees index fall below 6,500

Oil and commodity stocks bore the brunt as the FTSE 100 plunged again as the global markets resumed their Covid-19-driven frenzy.

The FTSE 100 closed 242.88 points lower at 6,462.55 at the end of trading, taking the index back to its lowest level since July 2016.

Michael Hewson, chief market analyst at CMC Markets UK, said: “As yields plunge across the world the coronavirus has effected a stampede for the exits in the fashion of someone shouting fire in a crowded theatre, as havens surge and yields plunge. There seems to be an increasingly inverse relationship between the rise in new cases of coronavirus being reported, to the speed of the falls in the share prices of stocks in these sectors, as fears about further sharp increases in cases weigh on investor sentiment.”

Shares in Cineworld dived after the cinema chain said coronavirus has not yet dampened demand as it sought to calm fears after the release of the new James Bond film was delayed due to the outbreak.

Investors were not convinced by the update, as the firm assured that it has not seen any significant impact on bookings yet and continues to see good admission figures across all its markets.

Cineworld closed 10.4p lower at 111.1p. Premier Inn owner Whitbread also slipped lower on concerns over a drop off in business bookings. Shares slipped 128p to 3,501p.

Cruise liner business Carnival also closed lower, dropping to a near-seven year low after the US reported its second fatality from the Grand Princess cruise ship in San Francisco. Shares fell 151.5p to 1,981p.