(Sharecast News) – London stocks fell on Thursday, lacking direction as U.S. markets closed for Thanksgiving, as investors reflected on the economic impact of the coronavirus pandemic.
The FTSE 100 closed down 0.4% at 6,362.93, while the FTSE 250 closed down 0.9% at 19,396.34.
IG market analyst Joshua Mahony said: “In the absence of a cheerful US disposition, we have seen European markets struggle somewhat as lingering questions about the economic difficulties ahead overshadowed optimism about prospects for future recovery.
“The outperformance of the more internationally oriented FTSE 100 over the FTSE 250 highlights growing concerns about the direction for the UK economy. The weakness in bank and airline stocks underscores fears that the UK will continue to struggle in its attempt at normalcy despite the recent optimism for vaccines that has pervaded the markets. Value stocks undoubtedly have a lot of advantages ahead, but we could be at a point where investors will be wondering how long they will have to wait before they can judge the real recovery is coming. “
Earlier today, Health Secretary Matt Hancock revealed what levels different parts of England would be at when the nationwide lockdown ends next Wednesday, with London at level 2, as planned.
Market players have also digested the news that German Chancellor Angela Merkel has decided to extend the country’s “lockdown lite” until December 20.
Michael Hewson, CMC Markets analyst, said: “The decision of the German government to go down this route suggests that the coming winter is likely to be a long, hard job for companies across Europe as populations shrink. are tired of having their freedoms curtailed and concerns are growing about the prospect of much longer-term economic damage. “
In the stock markets, ex-dividends have been a drag, with Persimmon, Imperial Brands, National Grid, CMC Markets and Bellway all in the frame.
Virgin Money was in shock a day after it said it had taken a £ 501million depreciation charge due to the pandemic.
Online electrical retailer AO World was also weaker after Jefferies downgraded its position in stocks to “hold” from “buy” after hitting a record high.
Bodycote fell after announcing another restructuring and said it expects the civil aerospace market to stay near current lows for at least the next 18 months.
On the upside, DCC’s sales, marketing and support services group was boosted by an upgrade to “overweight” at Morgan Stanley.
Precious metal miner Polymetal International has rallied after acquiring a stake in copper and gold exploration group Chesterfield Resources.
Market movers
FTSE 100 (UKX) 6,362.93 -0.44%
FTSE 250 (MCX) 19,396.34 -0.88%
techMARK (TASX) 3,922.39 -0.32%
FTSE 100 – Risers
Flutter Entertainment (FLTR) 13,875.00p 4.32%
DCC (DCC) 5,822.00p 2.97%
Polymetal International (POLY) 1.604.50p 2.66%
Reckitt Benckiser Group (RB.) 6,602.00p 2.45%
Homeserve (HSV) 1,067.00p 2.20%
Bunzl (BNZL) 2,352.00p 2.17%
Avast (AVST) 500.00p 2.04%
Ocado Group (OCDO) 2,196.00p 1.67%
Smith (DS) (SMDS) 332.10p 1.59%
B&M European Value Retail SA (DI) (BME) 468.80p 1.58%
FTSE 100 – Fallers
Khaki (PSN) 2694.00p -4.94%
Imperial Marks (IMB) 1418.00p -4.90%
Intermediate capital group (ICP) 1,657.00p -4.61%
Melrose Industries (MRO) 159.15p -3.92%
International Consolidated Airlines Group SA (CDI) (IAG) 165.20p -3.25%
National network (NG.) 881.40p -3.01%
BT Group (BT.A) 121.80p -2.95%
CRH (CRH) 3080.00p -2.75%
Lloyds Banking Group (LLOY) 37.22p -2.40%
Standard Life Aberdeen (SLA) 269.80p -2.39%
FTSE 250 – Risers
Petropavlovsk (POG) 27.30p 5.61%
Future (FUTR) 1720.00p 5.26%
Babcock International Group (BAB) 363.10p 3.51%
RHI Magnesita NV (DI) (RHIM) 3,194.00p 3.50%
Hochschild Mining (HOC) 221.00p 3.08%
Centamine (DI) (CEY) 113.25p 2.67%
Polypipe Group (PLP) 493.00p 2.39%
Spirent Communications (SPT) 257.50p 2.39%
Caledonia Investments (CLDN) 3,030.00p 2.36%
PZ Cussons (PZC) 230.00p 2.22%
FTSE 250 – Fallers
Virgin Money UK (VMUK) 127.25p -9.11%
AO World (AO.) 356.00p -6.07%
Bodycote (BOY) 725.50p -5.41%
CMC Markets (CMCX) 387.00p -4.80%
Petrofac Ltd. (PFC) 158.75p -4.51%
SSP Group (SSPG) 335.20p -4.23%
Ascentiel (ASCL) 330.80p -4.17%
TBC Bank Group (TBCG) 1,238.00p -4.03%
WH Smith (SMWH) 1,439.00p -4.00%
Bellway (BWY) 2891.00p -3.99%
