FTSE 100 falls as rally peters out on coronavirus fears
A surge in global stock markets has abruptly ended amid fears over further coronavirus lockdowns.
Markets across the world rallied on Monday on signs in the Chinese press that Beijing was trying to boost morale around its economy and stocks. China’s CSI 300 rose 5% to its highest level since 2015 and America’s markets followed suit. The tech focused Nasdaq 100 hit a new record, breaking the 10,600 mark and Netflix, Amazon and Apple all reached fresh highs as the world’s digital giants continue to perform well in lockdown.
Today the picture in markets was bleaker. High levels of virus cases in US states like Georgia, Arizona, Florida and Texas could weigh on sentiment, as well as worries in Australia.
CMC Markets analyst David Madden said: “Stocks in mainland China built on yesterday’s gains, but the upward move was more measured today. The Hong Kong market has handed back most of its earlier gains and it is now just about up on the session. Australia is in focus as its central bank kept rates on hold at 0.25%, meeting forecasts." A six week lockdown on Melbourne, the country's second-biggest city, was announced today.
The FTSE 100 fell 79.06 points or 1.3% to 6,206.88 with markets in France and Germany also down.
Trading platform Plus 500’s strong run of form during lockdown continued today, and the shares bounced as it reported a record number of active customers. Quarterly revenues tripled as volatile markets tempted punters in, and the stock rose 120p or 9% to 1454.5p. The firm also made interim chief David Zruia, who took over in April, its permanent boss.
But software giant Micro Focus was in the doghouse — down 9% at 401p as it swung to a $1 billion first-half loss, compared with a $1.4 billion profit a year earlier, hit by Covid disruption on new sales and timing pressure on renewals.
