LONDON, July 9 ― London shares slid for the second straight session yesterday as another jump in global Covid-19 cases overshadowed hopes of an economic rebound, even as stimulus poured in to help steer the economy away from an unemployment crisis.
The blue-chip FTSE 100 slipped 0.6 per cent and the mid-cap FTSE 250 fell 0.9 per cent, with banks and transport indexes leading declines.
Finance Minister Rishi Sunak promised an additional £30 billion (RM161.5 billion) yesterday, funnelling money to employers, homebuyers and hospitality firms to drive a recovery.
The move was initially well-received by investors but concerns over surging coronavirus cases governed sentiment to the day's close. However, housebuilders rose 0.5 per cent, from the announcement of stamp duty cuts.
“The tax cut should provide a much-needed shot in the arm for the property industry, which saw a complete shutdown during lockdown and is now plagued with worries about falling house prices,” Laura Suter, personal finance analyst at AJ Bell, said.
FirstGroup tumbled 23.1 per cent to its lowest in more than three months after the bus and rail operator warned its future was in doubt after a collapse in passenger numbers led to a £153 million loss in the year to March.
A raft of stimulus helped the FTSE 100 rebound about 9 per cent in the second quarter after a coronavirus-driven crash in March, but the export-laden index has struggled to build on those gains in July given forecasts of a slower-than-expected post-pandemic rebound and simmering US-China tensions.
HSBC fell 3.4 per cent after a report said US President Donald Trump's top advisers were considering proposals to undermine the Hong Kong currency's peg to the US dollar. The proposal could limit the ability of Hong Kong banks to buy dollars.
Economic data yesterday showed the collapse in Britain's labour market eased only slightly in June. ― Reuters
