Prospect of new restrictions to combat rising Covid-19 cases has triggered the worst selloff since June
- Latest: FTSE 100 closes down 3.3% – worst day in three months
- Pub stocks hit six-month low as curfew looms
- IAG hits eight-year low, Rolls-Royce at lowest since 2004
- Heavy losses on Wall Street too
- UK Covid-19 live: Whitty calls for ‘break in unnecessary links between households’
Here’s a reminder of today’s main events, from our economics editor Larry Elliott:
Shares in London have had their worst losses in more than three months amid fears that a second wave of coronavirus cases will force the government into harsh lockdown measures that will damage the economy.
The FTSE 100 – the leading benchmark of the UK stock market – closed more than 200 points down at 5,804 points on a day of sharp falls in equities in both Europe and North America.
Larry Kudlow, Donald Trump’s economic adviser, expressed the views of many jittery investors when he said there was a worry that the UK and other parts of Europe may shut down again because of the virus.
Neil MacKinnon, global macro strategist at VTB Capital, said: “Many economic commentators think that another lockdown would be disastrous for the major economies and undermine the nascent economic recovery which has been in place in the last few months.
White House adviser Larry Kudlow has suggested to reporters in Washington today that the selloff is partly due to fears the UK might ‘shut down’.
Responding to a question on stock market concerns, Kudlow said (via Reuters):
“I do think however there’s some worries that Britain might shut down. It’s coming out of London, I can’t verify, it’s not my job, but I read the reports like everybody else and I think that’s a great concern.”
“The USA is in much better position, thankfully. We’ve regained control of the virus, both the cases and the fatalities. But I think people are worried about Britain and maybe the rest of Europe as well.”
Continue reading… Source: The Guardian: FTSE 100 suffers £51bn plunge as Covid-19 lockdown fears hit markets – business live ———