FTSE 100 slides as sterling jumps

London markets tumbled into the red yesterday on renewed coronavirus fears and after the shock resignation of Sajid Javid as chancellor sent the pound higher.

Sterling jumped as investors speculated the promotion of Rishi Sunak to replace Mr Javid in the second most important job in the UK Government would herald the start of increased spending.

The pound’s rise compounded hefty share losses on the already under-pressure FTSE 100 Index, which joined global markets in the red after news of a sharp increase in cases of coronavirus and deaths in China.

The FTSE 100 fell 1.1%, or 82.34 points, to 7452.03, having at one stage plummeted 127

“Banking giant Barclays was among the heavier fallers”

points, with heavy falls from the likes of Scottish Gas owner Centrica and Barclays driving the declines.

With many blue-chip stocks generating their revenues outside the UK, sterling’s gains put their shares under pressure. The pound was up 0.7% to 1.30 US dollars and 0.9% higher at 1.20 euros.

Banking giant Barclays was among the heavier fallers, shedding 2%, or 3.02p, to 176.32p, after regulatory authorities launched a probe into chief executive Jes Staley’s link with convicted sex offender Jeffrey Epstein.

It overshadowed a 25% increase in 2019 profits, though the bank cautioned 2020 targets would be “challenging”.

With oil prices in decline – Brent crude was down nearly 1% at $55.33 per barrel – on worries over growth in China, BP and Royal Dutch Shell were also lower, falling 14.65p to 459.95p and 73.8p to 1947.2p respectively.