The FTSE 100 fell sharply on Monday morning as growing warnings from scientists caused shares across travel, hotel and pubs to slide.
London’s blue-chip index fell over 90 points, or 1.6%, at the open as scientists warn that Coronavirus in the UK has reached a tipping point.
Chief medical officer Chris Whitty has said: “The trend in UK is heading in the wrong direction and we are at a critical point in the pandemic. We are looking at the data to see how to manage the spread of the virus ahead of a very challenging winter period.”
On Sunday, the UK saw 3,899 new cases.
The FTSE 100 was dragged down by shares in Rolls Royce and IAG, which both fell over 10% whilst shares in JD Wetherspoons plummeted by 7%.
Shares in banks also fell on Monday. Barclays, Lloyds and NatWest have all fell over 5%.
Richard Hunter, Head of Markets at interactive investor, said: “With no confirmed vaccine for the coronavirus as autumn approaches, there is likely to be additional strain on government resources as they attempt to stave off a second wave, as the colder weather inevitably brings further cases to contend with.”
“Prospects for a sharp economic recovery have all but disappeared, as global growth receives the new threat of a resurgent pandemic. In addition, with talks for a further fiscal stimulus in the US seemingly in deadlock, investors have been choosing to vote with their feet over recent trading sessions given the deteriorating outlook.”
“In the UK, the pandemic also continues to add to concerns for general economic health, including the hospitality sector where further lockdowns would pile on additional pressure. The end of the furlough scheme will likely lead to another spike in unemployment and Brexit negotiations are at a critical point. The FTSE100 is now down 22% in the year to date,” he added.