LONDON, Jan 29 — UK shares continued their rebound, albeit in subdued trading, after a steep sell-off earlier this week on rising fears over the potential impact from the coronavirus, while Avast slid amid reports the company had sold user data.
The FTSE 100 index, which slumped more than 2 per cent on Monday, rose for the second consecutive session and added 0.3 per cent. Financial stocks provided the biggest boost, supported by results of Spain’s Santander.
The FTSE 250 climbed 0.2 per cent today.
However, Avast underperformed with a 7 per cent drop, bringing its losses for the week to nearly 20 per cent. The cybersecurity company denied media reports and assured users that no personally identifiable information had been sold to a third party.
Both British benchmark indexes have shed more than 2 per cent since last week, when news of the coronavirus flare-up first emerged. Dealers are still mulling over how the outbreak will affect the global economy.
“Markets will be yearning for signs that the outbreak is stabilising,” FXTM analyst Han Tan said.
“Historically, global markets tend to rebound after such outbreaks, provided that the toll exerted on the global economy is not too damaging,” FXTM said, but warned that a meaningful recovery in equities could be months away.
Traders are also looking ahead to a US Federal Reserve policy meeting, in which the bank is likely to leave interest rates unchanged, but may address future headwinds due to the virus outbreak.
“The emergence of the coronavirus in China will warrant a degree of caution in the outlook from the Fed, whilst there is little upward pressure on prices to suggest a shift in the FOMC’s stance,” Markets.com analyst Neil Wilson said.
McCarthy & Stone Plc slid 5 per cent as its biggest shareholder plans to slash its stake in the midcap retirement homebuilder.
Small-cap Pendragon Plc lost 4.5 per cent after the car dealership chain warned annual profit would be around the bottom end of its expectations. — Reuters
