FTSE slips as investors wait for updates on virus
THE major markets paused for thought on a subdued trading session amid increasing caution over the spread of coronavirus.
A trading session devoid of much major economic news meant investors remained on tenterhooks over the impact of coronavirus, with more reports that the virus is spreading further out of China unsettling some investors.
The FTSE 100 flight slipped 20.38 points lower at 7,436.64 at the close yesterday.
The other major European markets also closed in the red as they failed to keep up the momentum from a strong trading session on
Wednesday.
The German Dax decreased by 0.87% while the French Cac moved
0.8% lower.
The Dow Jones slipped back from record highs as investors were subdued during a quiet opening.
Meanwhile, sterling sank despite the latest retail sales figures coming in ahead of expectations, after equally positive economic data in the previous two trading days.
The value of the pound fell 0.36% versus the US dollar at 1.287 and slid 0.26% against the euro at 1.192.
In company news, Lloyds moved marginally higher despite the bank warning of a hit to 2020 results amid tough competition in the mortgage market.
The lending giant lowered two key targets for 2020 as its retail margins come under pressure amid low interest rates and price competition affecting the sector.
Shares in the company closed 0.77p higher at 56.55p at the end of trading.
Medical equipment firm Smith & Nephew was one of the FTSE 100’s top risers after it saw annual sales surpass five billion US dollars (£3.8 billion) for the first time.
The group reported a 4.4% rise in underlying revenues to $5.1bn (£4bn) for 2019 and predicted growth of 3.5% to 4.5% for 2020 but cautioned that coronavirus could cloud its outlook. Shares rose
134p to 1,979p.
BAE Systems was another riser, with its shares increasing after it hailed a “year of significant progress” and delivered strong financials alongside a new deal for its pensioners. Shares in BAE rose 16.4p to 656.4p.
The price of oil nudged marginally higher as recent price rises appeared to stall amid more caution over China. The price of a barrel of Brent crude oil increased 0.05% to $59.32.
The biggest risers on the FTSE 100 were NMC Health, up 74.4p at 857.4p, Smith & Nephew, up 134p at 1,979p, Centrica, up 3.08p at 78p, and DS Smith, up 11.8p at 362.7p.
The biggest fallers were Imperial Brands, down 135p at 1,709p, Aveva, down 298p at 4,992p, Burberry, down 93p at 1,920p, and Meggitt, down 25.2p at 612p.
New York
US stock indexes fell yesterday, dragged down by technology heavyweights, as investors fretted over the rising number of coronavirus cases in China and other countries as well as the potential economic damage from the epidemic.
Sentiment was already weak after Japan reported two new deaths and
South Korea reported a rise in new infections.
Recent policy easing by China, a largely betterthan-expected fourthquarter earnings season and hopes that the economic jolt from the coronavirus will be shortlived have pushed Wall Street’s main indexes to new highs in recent weeks.
Technology stocks declined 1.2%, the most among seven of the 11 major S&P sectors trading lower.
Microsoft, Apple and Amazon dropped about 1% each.
Viacomcbs slumped 17.1% as its earnings fell short of revenue and profit expectations in its first quarterly earnings results since closing its merger.
E*trade jumped 24.1% after Morgan Stanley offered to buy it in a
$13 billion stock deal.