As fears of a second wave of Coronavirus outbreak grow, the FTSE 100 tumbled in Monday’s early trading.
As shops across the UK open for the first time in three months, the index of UK blue-chips fell below 6,000 points whilst the pound also dipped 0.2%.
Investors’ optimism has been dampened amid the news of a spike in Coronavirus cases in Beijing, where authorities closed a food market over the weekend.
“Reports of a new COVID-19 lockdown in Beijing speak directly to market fears that the measures taken to contain the virus so far are not enough,” said Michael McCarthy, the chief market strategist at CMC Markets.
Among the biggest fallers of Monday’s FTSE trading was oil giant BP, which tumbled 5% on opening to 306p.
The oil company said this morning that the pandemic is set to have “an enduring economic impact.”
Bernard Looney, BP’s chief executive, said: “In February we set out to become a net-zero company by 2050 or sooner. Since then we have been in action, developing our strategy to become a more diversified, resilient and lower-carbon company. As part of that process, we have been reviewing our price assumptions over a longer horizon. That work has been informed by the Covid-19 pandemic, which increasingly looks as if it will have an enduring economic impact.”
Global stocks also took a hit on Monday. Japan’s Nikkei was 3% down whilst in Europe, the CAC in Paris, German DAX and Spanish IBEX all fell around 3%.
In the UK, non-essential retailers are opening to re-start the economy. Retailers have introduced strict safety measures and social distancing rules for customers whilst shopping. Prime minister Boris Johnson has told shoppers to “shop with confidence”.
