LONDON, Sept 30 ― The FTSE 100 fell yesterday on worries about a stalling economic recovery and surging Covid-19 cases, with pub owners sliding on the prospect of further curbs as another round of Brexit negotiations began.
European Union negotiators signalled they were willing to begin work on a joint legal text of a trade deal with Britain, the Times reported, as the three days of talks got under way.
The global mood was also subdued ahead of today's US presidential debate between incumbent Donald Trump and Democrat challenger Joe Biden.
The blue-chip FTSE 100 index dropped 0.5 per cent. The mid-cap index slipped 1.1 per cent and was on track to record its worst month since March.
Banks and oil stocks were among the biggest decliners, while defensive play such as utilities and industrials rose.
A raft of stimulus measures had led a FTSE 100 rally from March lows, but the index was on course for its second monthly decline in five as fresh coronavirus-linked restrictions and Brexit uncertainties dulled sentiment.
Among bright spots, plumbing parts distributor Ferguson rose 6 per cent after it restored its dividend as cost-reduction measures helped it report a 4.1 per cent rise in annual profit.
Retailer B&M European Value Retail rose as brokerages cheered a strong first half. “The latest update ...confirms it is well-positioned for tougher economic times,” said Russ Mould, investment director at AJ Bell, also tipping it as a prime merger candidate for British supermarket retailer Asda.
Baker Greggs lost 8 per cent after saying it expects trading to remain below normal for the foreseeable future due to the pandemic.
Pub owners JD Wetherspoon, Marston's, Mitchells & Butlers and Restaurant Group all slumped more than 5 per cent after a junior minister said Britain's nightclubs may have to stay shut until a Covid-19 vaccine is developed. ― Reuters
