FTSE 100 Falls As London Faces Tighter Curbs

(RTTNews) – U.K. stocks fell sharply on Thursday as the government imposed tougher curbs on London in a bid to contain a spike in new cases.

Health minister Helen Whateley announced the news to London members of Parliament in a call, with Prime Minister Johnson expected to confirm it in a statement later in the day.

Investors also looked for signs of progress in a Brexit trade deal as EU leaders meet in Brussels today to hold their first detailed discussions on Brexit this year.

The benchmark FTSE 100 dropped 144 points, or 2.4 percent, to 5,791 after declining 0.6 percent in the previous session.

Travel-related firms and energy companies were among the prominent decliners.

Premier Inn owner Whitbread slumped 6 percent, hotel chain InterContinental tumbled 3.2 percent and airline EasyJet lost 4.7 percent.

Budget carrier Ryanair shed 3 percent after it cut the number of its winter flights by a third because of Covid flight restrictions across the EU.

BP Plc fell 4.6 percent and Royal Dutch Shell gave up 4.5 percent as oil prices fell over 2 percent on rising concerns about the global economic outlook.

Jet engine maker Rolls-Royce Holdings fell over 1 percent after it priced an offering of three tranches of senior unsecured notes denominated in U.S. dollars, euros and sterling.

In economic news, British lenders expect loan defaults to rise in the fourth quarter, according to Credit Conditions Survey from the Bank of England, released today.

Lenders reported that the default rates on secured loans to households remained unchanged in the third quarter but was expected to increase in the fourth quarter.

At the same time, default rates for total unsecured lending decreased in the third quarter but were forecast to climb in the quarter ahead.

This post was originally published on this site