Long-term fears take toll on Footsie

London markets tumbled heavily as warnings from economists over the long-term impact of the coronavirus crisis weighed on trading. European stocks were also shaken by increased worries over the state of Uschina trade tensions.

President Donald Trump continued to stoke the fires of a feud with Beijing, as he stated he was “very disappointed in China”.

The FTSE 100 closed 162.51 points lower at 5,741.54. Europe’s other major markets also slumped dramatically as caution from central banks helped to keep sentiment low.

David Madden, market analyst at CMC Markets uk, said :“equity markets in europe are deep in the red as dealers are worried about the economic impact of the health crisis. On Wednesday, the Fed chief Jerome Powell cautioned that downside risks are significant, and the economic pain might remain for a prolonged period.

“The warning from the central banker came at a time when there are growing concerns about the jump in new infection rates as a result of countries reopening parts of their economies.”

The Dow Jones lost points after the bell as investors were shaken by President Trump’s suggestion that he could “cut off the whole relationship with China”.

Meanwhile, sterling slipped back after Bank of England Governor Andrew Bailey made it clear the UK central bank is not considering negative rates.

The value of the pound fell 0.34 per cent versus the US dollar at $1.219, and was down 0.07 per cent against the euro at €1.130. Stagecoach, Go-ahead Group, National Express and Firstgroup all sank after politicians warned people to avoid using public transport for the near future.

In company news, WH Smith slipped after it warned over a “significant hit” since March as the coronavirus lockdown forced it to close travel outlets and many high-street stores. Shares closed 42p lower at 874.5p .

Elsewhere, housebuilder Persimmon fell by 102p to 2,049p despite saying it will ramp up its operations after restrictions on moving home were eased earlier this week.

Pub group and brewer Marston’s moved 2p to 32p higher after it secured a £70 million funding boost, even if its pubs remain closed through 2020.