Posted on Mar 30, 2020
UK shares slipped on Monday as another wave of stimulus measures failed to calm investors worried by the seemingly inevitable prolongation of the coronavirus-led shutdown in Britain, Reuters reports.
The FTSE 100 index slipped 1.7%, with shares in aerospace suppliers Rolls-Royce, Meggitt and Senior plunging between 13% and 15%.
J.P. Morgan, which assumes a 38% drop in global air traffic in 2020, cut earnings estimates for the sector, and expects credit rating firms including the S&P to downgrade Rolls-Royce to non-investment grade.
Oil majors BP and Royal Dutch Shell fell as oil prices tumbled on fears about the economic hit from the pandemic as well as a price war between Russia and Saudi Arabia.
Global stock markets breathed a bit last week amid a brutal selloff as policymakers rolled out unprecedented stimulus measures, but the FTSE 100 is still headed for its worst month in more than three decades with losses of more than 17%.
Markets were still not inspired even after China’s central bank unexpectedly cut the reverse repo rate by 20 basis points, the largest in nearly five years.
“I think the markets want to have hope, but the reality is there is still more pain to come in the short-term,” said Louise Kernohan, investment director for UK Equities at Aberdeen Standard Investments.
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