FTSE 100 LIVE: Second coronavirus wave fears strike markets as FTSE opens down

3 min

12 shares, 82 points
FTSE 100 LIVE: Second coronavirus wave fears strike markets as FTSE opens down

11.50am update: Factory output slumps

UK factory output suffered its worst quarter on record, as the economic effects of lockdown played out across the economy. 

CBI reported in its monthly industrial trends survey that output dropped in 15 out of 17 sub-sectors. It also projected potential falls ahead, as the hope for a rapid recovery in some parts of the economy dwindles. 

11.30am update: FTSE makes slight recovery, US futures rally

The FTSE regained lost ground, making a slight recovery to trade just above its opening levels. 

US stock futures ticked up further, on investors hopes that the economic recovery would happen faster than has been predicted. 

Jobs figures coming out of the US last week were slightly better than feared, a measure that has buoyed markets in the past. 

11am update: London Stock Exchange chief named head of UK’s top financial regulator

The Treasury has announced that Nikhil Rathi has been named chief exec of the FCA. 

Mr Rathi has been at the LSE since 2015, having previously served 11 years in the treasury. 

Chancellor Rishi Sunak welcomed the appointment.

10.20am update: Wirecard slides further

Stocks of the beleaguered German financial services provider Wirecard slid further today, as it admitted that it was likely that €1.9bn in missing cash that it has been trying to locate does not exist.

Shares opened 46 percent lower today, as a confidence-related sell off continued. 

The company withdrew its financial results for 2019 and Q1 of 2020 amid an accounting scandal. 

9.30am update: Glencore slides in London

London-listed shares of Swiss commodity miner Glencore fell as much as 5.8 percent to a three-week low after it said the Office of the Attorney General of Switzerland was investigating it for failure to have measures in place to prevent alleged corruption in the Democratic Republic of Congo.

Across Europe, stocks rebounded slightly from their opening retreat, but were still trading lower. 

“The market is caught between fears of a second COVID-19 wave and improving (economic) data,” Stephen Innes, markets strategist at AxiCorp told Reuters.

“Financial conditions are easing and the early-June surveys have improved markedly, but with U.S. case counts on the rise, investors remain jittery and probably will until a vaccine is in hand.”

8.40am update: European stocks dip

European stocks dipped pretty much across the board this morning, with France’s CAC leading losses at nearly 0.9 percent lower. 

The FTSE moved 0.7 percent lower mirroring the Europe-wide Stoxx 600 index.

8.30am update: Flock to havens

Gold futures prices reached their highest point in more than a month this morning as investors fled to safe haven assets. The delay in economic recovery is spooking investors, as new virus cases continue to appear. 

Investors tend to buy gold, as riskier assets become more volatile. 

Silver futures and the Japanese yen also rose. 

“General risk aversion is helping the market, we are seeing pressure on growth exposed currencies and on share markets. Overall, there are concerns about increasing infection rates,” said Michael McCarthy, chief strategist at CMC Markets told Reuters. 

7.50am update: US stock futures edge up

US stock futures tentatively edged up this morning, as investors waited for indications of the severity of new virus cases. 

Dow futures rose 0.2 percent, while S&P 500 futures were up 0.3 percent ahead of market open at 2.30. 

7.10am update: FX outlook

Against a basket of currencies, the dollar retreated from last weeks gains, falling 0.2% to 97.501.

The Pound enters the new week at 1.1044 against the euro, but analysts say it will be held back this week due to uncertainty surrounding Brexit talks, and investor scepticism about whether the Bank of England has done enough to support the UK economy. 

This is Lucy Harley-McKeown taking over from Grace McRae. 

6.11am update: US home prices to defy economic downturn

According to the June 9-19 poll of over 40 housing strategists, house prices will rise 3.0% this year and next, reuters reports.

Three months ago prices were expected to rise 3.4% and 3.2% respectively, making the forecast appear remarkably stable, given the economy is taking its worst hit on record due to the pandemic.

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