FTSE 100 posts biggest fall in two months as Covid-19 worries hit markets – as it happened

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FTSE 100 posts biggest fall in two months as Covid-19 worries hit markets – as it happened

Tobacco, travel and hospitality stocks lead fallers on the FTSE 100 index, as European markets have worst day this yearLatest: FTSE 100 dives 2%Europe-wide Stoxx 600 fell 1.9%, worst fall since last DecemberShares in travel and hospitality firms down amid Covid-19 worriesJapan’s Nikkei fell 2% today as cases riseWSJ: US considering cutting nicotine levels in cigarettesEarlier:Vacancies up 16% in March, ONS sayUK jobless rate falls to 4.9% in December-FebruaryNewbie traderer workers have suffered most job losses 9.26pm BST A late PS: The US stock market ended the day rather lower too, as anxiety over Covid-19 weighed on shares in New York.Airlines, energy firms, chemical producers, financial stocks and were manufacturers among the fallers. United Airlines lost 8.5%, making it the top S&P 500 faller.U.S. stocks fell for a second day as strong corporate earnings failed to boost the market, while an alarming rise in global Covid cases raised concerns about the recovery.The Dow fell 0.75%. The S&P 500 was down 0.68%. The Nasdaq tumbled 0.92%. https://t.co/ZnKZHAItFn pic.twitter.com/MlEKc8r1fMNetflix shares fell as much as 11% in after-hours trading after reporting a large miss in subscriber numbers in its first-quarter earnings report. The company also said it only expects to add about 1 million subscribers in the current quarter.The company’s revenue still grew 24% year over year and was in line with its beginning of quarter forecast, Netflix said. It also delivered a strong beat on earnings compared to Street estimateEARNINGS: Netflix posts Q1 earnings that beat expectations, but reports a dramatic slowdown in subscribers.-EPS: $3.75, vs. $2.97 expected-Revenue: $7.16 billion, vs. $7.13 billion expected@JBoorstin has the numbers. https://t.co/Unc1y54WW2 pic.twitter.com/9SDPgeHsYX 7.39pm BST The FTSE 100 fell sharply on Tuesday, taking it back below 7,000, as global markets were dragged lower by growing investor concern over the Indian variant of Covid-19 and sliding tobacco shares.The blue-chip index dropped by 2% or 140 points to close the day at 6,860, led by the British Airways owner, IAG, amid fears over renewed travel restrictions and as shares in major tobacco firms fell on the prospect of tougher rules being introduced by the Biden administration. Related: FTSE 100 falls sharply amid fears for travel due to India Covid variant  Related: UK unemployment rate falls to 4.9% despite Covid restrictions  Related: MPs urge Cameron to make public Greensill lobbying texts to Sunak  Related: Primark owner to hand back £72m in furlough funds after record sales  Related: Next boss received 28% pay rise last year  Related: Rishi Sunak urged to end hostility to green spending or miss net zero target  Related: Asda takeover by Issa brothers could lead to higher fuel prices, says CMA  Related: Hair by Amazon? Tech giant to open hi-tech salon in London  7.07pm BST The City regulator has warned social media sites that it may take action if they continue to promote risky and sometimes fraudulent investments to often inexperienced consumers.The Financial Conduct Authority is concerned about the growing influence that sites such as YouTube, Instagram and TikTok are having on a new breed of mainly Newbie traderer DIY investors, whom it believes are taking big financial risks when investing in cryptocurrencies, foreign exchange trading and other high-risk products.“If needed, we will take action.” Related: Social media sites warned over risky investment offers  6.42pm BST On the issue of travel....Ministers have urged Heathrow airport to dedicate a terminal to processing passengers arriving from “red list” countries, my colleagues Aubrey Allegretti and Gwyn Topham write.It comes amid fears that the number of people coming from India could swell and create a more dangerous environment for Covid variants to spread.The Guardian understands the Home Office has suggested Terminal 4 be used to separate those who have travelled from places where entry is banned for all apart from UK citizens and residents, and avoid them mixing with people coming from safer countries. Additional Border Force staff would also be provided to help deal with incoming passengers. Related: Ministers urge Heathrow to dedicate terminal for ‘red list’ arrivals  6.22pm BST Wall Street’s main indexes are still in the red, with the Dow Jones industrial average now down 256 points or 0.75% at 33,821 points.Reuters has more details on the selloff:Shares of airline operators and cruiseliners including JetBlue Airways, American Airlines, Norwegian Cruise Line and Carnival Corp, which were hammered last year as widespread lockdowns led to a halt in global travel, fell between 5% and 9%.“Rising COVID-19 cases around the world is a risk,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. 6.10pm BST CNBC have a good take on today’s European markets selloff - here’s a flavour:The pan-European Stoxx 600 ended the session down by 1.9%, with with travel and bank shares both dropping 3.7% to lead losses as all sectors and major bourses declined.European markets are following a pattern of uncertain sentiment around the world as rising Covid-19 cases in multiple countries resurface concerns about stock valuations. India, which has seen a resurgence in cases of late, reported more than 200,000 infections for the sixth consecutive day Tuesday.At the bottom of the European blue chip index, Austrian chipmaker AMS plunged 12.9% after a media report that it lost some business from U.S. tech giant Apple, while Swiss Re slid 7.5% after entering into a partnership with Veoneer to advance assessment and development of ADAS technology.On the opposite end of the pan-European benchmark, Czech antivirus software maker Avast rose 1.3% after a promising first-quarter trading update. 5.40pm BST Here’s Danni Hewson, AJ Bell financial analyst, on the market selloff today: “Whilst last week investors were rushing to drink the Kool-Aid, or a pint of whatever brew was handy to toast reopening, this week that optimism is giving way to a sort of grudging gloom.In the UK the FTSE 100’s hurtled back below the 7,000 mark. The 2% fall wiping around £37 billion off the value of shares fuelled by a mixed bag of economic news. Big tobacco’s concern about potential caps on nicotine levels from Joe Biden’s administration delivered two of the biggest slides of the day but there was also further to go for Primark owner, Associated British Foods. 5.36pm BST The Europe-wide Stoxx 600 share index fell by 1.9% by the close of play today, hit by Covid-19 worries.That’s its biggest one-day loss since last December, after a strong rally which saw the index hit a new all-time high last week. 5.04pm BST Here’s Reuters explaining how oil prices have been hit by Covid-19 concerns:Oil fell by $1 on Tuesday, pulling back from one-month highs, on fears that India, the world’s third-biggest oil importer, may impose restrictions as coronavirus infections and deaths soar in that country.Oil prices have risen steadily this year on expectations of a recovery in demand but while the United States and China are rebounding, numerous other countries are not.  5.00pm BST Overall, European markets have suffered their worst day this year (as measured by the Stoxx 600 index, which has closed down 1.9%)Stoxx 600 biggest drop this yearFTSE 100 biggest drop in 2 monthsDAX biggest drop since late-JanCAC biggest drop this yearIBEX biggest fall this year 4.57pm BST Ouch. The UK’s blue-chip FTSE 100 index has racked up its biggest one-day fall in almost two months. 4.26pm BST Travel stocks are also sharply down on Wall Street.United Airlines (-9.3%) and American Airlines (-7%) are among the top fallers on the S&P 500 index (which has now dropped around 0.9% today). 4.19pm BST The oil price, another gauge of economic optimism, is also dropping.Brent crude is down around 2% at $65.71 per barrel, a drop of $1.34 today. 4.09pm BST The Europe-wide Stoxx 600 share index is also sharply lower, down 2% in late trading.That puts it on track for its biggest one-day drop since last December.*STOXX EUROPE 600 INDEX FALLS 2%, SET FOR BIGGEST DROP SINCE DEC 3.47pm BST Back in London, the FTSE 100 has dropped further into the red, as worries about the pandemic weigh on stocks.The blue-chip share index is now down 127 points, or 1.8%, at 6874 points in late trading.Airline stocks are also getting a bit of a pounding after the UK put India on the red list for flights, while there is also rising concern about increasing cases across Asia, with Japan a particular concern.With the French government also increasing its stake in Air France KLM, and the airline raising another €1bn, it would appear that this has also spooked the markets, in a sign that any recovery in this sector is likely to take a lot longer than had originally been anticipated. 3.33pm BST Reminder: Japan’s Nikkei 225 index fell almost 2% today (it closed hours ago!) which the AFP newswire says was partly due to worries about rising Covid-19 cases.The key index opened lower on profit-taking following a three-day winning streak, with investors disheartened by falls in US shares, brokers said. “Selling then spread nearly across the board on concerns over another virus state of emergency,” said Daiwa Securities chief technical analyst Eiji Kinouchi. 3.02pm BST In New York, stocks have opened a little lower.The Dow Jones industrial average is down 103 points, or 0.3%, at 33,974 points, dipping further from Friday’s record high. 2.37pm BST We’d like to hear from those under 25 who have been made unemployed, or are struggling to get a job, due to coronavirus. If that’s you, please click here and tell us your story. Related: Newbie trader people in the UK: have you been made unemployed during the pandemic?  2.23pm BST Back in the City, shares in some travel and hospitality companies are also falling today, Airline group IAG is down 5%, pushing the FTSE 100 index a little deeper into the red (although the tobacco firms are still doing the most damage). Jet engine maker/servicer Rolls-Royce is also lower (-2.6%). Related: What do we know about the Indian coronavirus variant? “Investors seem to be struggling to make up their minds on where we are with the Covid-19 pandemic, unsurprisingly as this is a global picture with plenty of moving parts.“The markets are bouncing from reopening optimism to concerns over mounting infections in parts of the world as the rollout of vaccines proves patchy. Related: Coronavirus live news: EU to rule on J&J vaccine safety; India records nearly 1.6m cases in a week  1.36pm BST ING Developed Markets Economist James Smith has dug into the ONS’s data, and found more signs that the labour market is turning a corner:The UK jobs market has proved fairly resilient through the latest lockdowns. The latest unemployment rate covering the three-month period to February dipped to 4.9% - and new weekly data suggests it has gone as low as 4.6% during that time. More timely payroll data dipped back slightly in March but also suggests that – outside of the hard-hit consumer services sector – other parts of the jobs market are beginning to turn a corner.“The small rise in employment recorded in February during a period of national lockdown, is proof of the increased resilience of the UK economy to lockdowns.The improved optimism that the worst of the pandemic may be over should be tempered by the fact that employers generally wait until the end of a lockdown period to reassess their business plans and we may still see a rise in redundancies later on if business activity doesn’t recover quickly to pre-pandemic levels.” Our latest #NIESRwage Tracker suggests the #economy created more #jobs than it lost during the third national #lockdownIt also forecasts that average weekly earnings will grow at 5.2% in the second quarter of 2021Read here our analysis in full https://t.co/lha6z1SSQ4 12.59pm BST On the competition concerns over the Asda takeover, a spokesperson for the Issa brothers and TDR Capital says:“We will be working constructively with the CMA over the course of the next 10 days in order to arrive at a satisfactory outcome for all parties within Phase 1.This would provide welcome certainty for our colleagues, suppliers and customers, and allow us to move forward with our exciting plans for investment and growth at Asda.” 12.32pm BST The jump in vacancies last month is an encouraging sign that employment levels will rise again once the lockdown is lifted, says Josie Dent, managing economist at the CEBR: Single-month figures suggest that job vacancies began to grow again in March 2021, rising from 562,000 in February to 650,000.This 16% increase was likely in anticipation of lockdown restrictions lifting. Last month’s rise in vacancies came after a 3% contraction in February, and takes the number of vacancies to its highest level since March 2020.“While the labour market continues to battle with the pandemic, there are signs it is turning a corner.“The Job Retention Scheme is doing a lot of heavy lifting and is helping to keep a lid on jobs losses. Over 2021 the unemployment rate will creep upward as firms tend to weak balance sheets and furlough support ends in September. Nonetheless, the green shoots of a recovery in the jobs market are emerging. As more of the economy reopens over the coming months, businesses will look to take on more staff to meet pent-up demand.  12.10pm BST Encouragingly, the number of vacancies jumped last month, as companies prepared to reopen from the lockdown.The Office for National Statistics says that vacancies jumped by 16% month-on-month in March alone, compared with February.The online job advert estimates estimates also provide an early insight into a possible strengthening of vacancies in March and into the first two weeks of April 2021.According to the KPMG and REC, UK Report on Jobs published in April 2021, the number of permanent and temporary vacancies grew rapidly in March 2021 compared with February 2021. Demand for permanent workers rose at the quickest rate in six years, reflecting the anticipated easing of lockdown restrictions. “There are some further positive signs, with the ONS reporting a marked rise in job vacancies in March 2021, coinciding with the lifting of restrictions. With the vaccination programme on target and producing good levels of protection against COVID-19 and businesses working diligently to re-open, we can expect to see the labour market figures remain steady and continue to improve in the short to medium term. The continued success of the vaccination programme will prove critical for the UK job market in advance of the furlough scheme expiring in September. Although ONS describes the labour market as “subdued”, these figures give cause to be cautiously optimistic and there is certainly an element of anticipation as we watch the government’s four-point plan unfold.”  11.19am BST Britain’s competition regulator is worried the £6.8bn takeover of Asda by the billionaire Issa brothers and private equity group TDR Capital could push up fuel prices for motorists in parts of the UK.The Competition and Markets Authority says it has concerns about the takeover of the supermarket chain. That’s because Mohsin and Zuber Issa and TDR also own EG Group, which operates 395 petrol stations in the UK, while Asda owns 323. Our job is to protect consumers by making sure there continues to be strong competition between petrol stations, which leads to lower prices at the pump. These are two key players in the market, and it’s important that we thoroughly analyse the deal to make sure that people don’t end up paying over the odds.Right now, we’re concerned the merger could lead to higher prices for motorists in certain parts of the UK. However, if the companies can provide a clear-cut solution to address our concerns, we won’t carry out an in-depth Phase 2 investigation.  Related: New Asda owners snap up fast food chain Leon  10.42am BST Shares in UK-listed tobacco giants are sliding this morning, following a report that the US government is considering whether to cap nicotine levels in cigarettes.According to the Wall Street Journal, the Biden administration is considering requiring tobacco companies to lower the nicotine in all cigarettes sold in the U.S. to levels at which they are no longer addictive.Administration officials are considering the policy as they approach a deadline for declaring the administration’s intentions on another tobacco question: whether or not to ban menthol cigarettes.The Food and Drug Administration must respond in court by April 29 to a citizens’ petition to ban menthols by disclosing whether the agency intends to pursue such a policy. The Biden administration is weighing whether to move forward on a menthol ban or a nicotine reduction in all cigarettes—or both, the people familiar with the matter said.SCOOP: The Biden administration is considering requiring tobacco companies to reduce the nicotine levels in all cigarettes sold in the U.S. to levels at which they are no longer addictive. https://t.co/kZTew0Vq17 10.24am BST Sterling hit the $1.40 mark against the US dollar for the first time in over a month this morning, amid signs that the UK economy is picking up.The pound traded as high as $1.4009, its highest since early March, adding to strong gains yesterday when the US dollar was broadly weaker. Retail footfall and consumer spending is picking up rapidly.Of course, all this data is massively skewed by interventions – furlough masks the true employment situation, arbitrary reopening dates skew spending to the first few days and weeks as the pent-up demand is let out. Related: Footfall in England up by almost 200% as Covid controls ease “The improvement in the unemployment rate provides further evidence the UK economy is on the road to recovery.The better than forecast data will add fuel to the recent GBPUSD rally, however expect a flurry of profit taking within the FX market while GBPUSD sits above the 1.40 handle as participants de-risk their sterling balances”  9.57am BST Primark reported record sales last week when non-essential retailers were allowed to reopen in England and Wales, with shoppers eager to buy spring and summer clothes, as well as stay-at-home staples. Related: Primark reports record sales as Covid lockdown eases in England and Wales  9.52am BST Britain’s unions say the government must do more to help people back into work, and provide more support for the unemployed.Particularly Newbie traderer people (as under-25s suffered over half the job losses in the last year).“Now that Covid-19 restrictions are easing we need urgent action to support the recovery. “Newbie trader workers are bearing the brunt of this pandemic. Many of them working in badly-hit industries like retail, hospitality and the arts have lost their jobs and are at risk of long-term unemployment.  Related: 'Families are struggling': Britons react to Rishi Sunak's 2021 budget Researchers said government could help change public perceptions of benefits by treating claimants with dignity and ensuring that the Department for Work and Pensions and ministers spoke respectfully about them.Ben Baumberg Geiger, lead author of the report and a senior lecturer at the University of Kent, said: “Some of these people say they don’t need benefits – but others don’t claim because they don’t understand that they are eligible, hope that things will get better soon, or are put off by the perceived ‘hassle’ or stigma of claiming.” Related: Tens of thousands in UK avoided universal credit during Covid over stigma  9.21am BST The British Chambers of Commerce’s head of economics, Suren Thiru, warns that the long-term damage caused by the pandemic means the government must provide more support, once the furlough scheme ends.In particular, Newbie trader people will need help, even once the economy is recovering.“The latest data confirms that the UK labour market remains subdued. While there was a marginal fall in the unemployment rate, the squeeze on activity from ongoing restrictions helped drive a decline in payroll employment in March.“Unemployment remains on course to peak towards the end of 2021, once the furlough scheme expires and those who stopped job hunting during the pandemic look to return to the workforce as restrictions ease.️ @Suren_Thiru: "The latest data confirms the UK labour market remains subdued. While there was a marginal fall in the unemployment rate, ongoing restrictions helped drive a decline in payroll employment."Our reaction to latest Labour Market stats https://t.co/CRnQ0UFBha 9.16am BST Minister for Employment Mims Davies MP says: “Another drop in unemployment, vacancies on the rise, and over half a million people joining payrolls in the last month is welcome news as we continue on our roadmap to recovery with key sectors of our economy reopening.“This is still a challenging time, but right across the country our Plan for Jobs is helping people of all ages to get back on their feet and giving employers the confidence to recruit as we push to build back better.”Today we see another drop in unemployment, vacancies on the rise & over half a million people people joining payrolls in the last month. But it remains a challenging time for many. Our roadmap is key to our recovery as sectors reopen safely-we are determined to #BuildBackBetter https://t.co/VxwBxRjMCsThere are a million ways to cut the UK labour market stats. But perhaps the most unusual is the employment minister Mims Davies' approach: "over half a million people joining payrolls in the last month"The ONS: "56,000 fewer people were in payrolled employment in March" 1/2There is an answer to this. DWP clarifies Davies is referring to gross payroll inflows. 613,334 versus 669,449 outflow... net -56,115. "highlighting that opportunities are out there and people are finding employment."But you have to go to tab 6 of an excel sheet to find it. 2/2By the same data, there were 443,998 jobs created in April 2020... Great news! But 907,032 lost in the single worst month of the pandemic. Net -463,034. 8.53am BST The slight fall in the unemployment rate from 5.0% in January to 4.9% in February suggests that the government’s job furlough scheme is still insulating the labour market from the worst effects of the pandemic, says Thomas Pugh of Capital Economics.We still expect the unemployment rate to rise to a peak of 6.0% by early 2022, but that would be a much better result than most feared only a few months ago.  8.52am BST Average pay rose by 4.4% per year in December-February... but that doesn’t tell the whole story.The jump in pay growth is parrly because so many lower-paid jobs have been lost in the pandemic - creating a compositional effect. 8.16am BST The number of vacancies at UK firms has risen slightly, but remains much lower than before the pandemic.In January 2021 to March 2021, there were an estimated 607,000 job opportunities at UK businesses.The increase in vacancies over the latest quarter was 17,000, which is a six-month consecutive slowdown in the quarterly figures from the 165,000 increase seen in September 2020.  8.05am BST Newbie traderer workers have born the brunt of the jobs lost in the pandemic.More than half of those losing their jobs in the last year were aged below 25, with another quarter in the 25-34 bracket.Official jobs stats show a quarterly dip in unemployment below 5% - broader trend is stable, more than would have been expected in second lockdown - again confirmation that of 813,000 lost payrolls in a year436k (53.7%) were under 25635k (78.2%) were under 35 pic.twitter.com/h2Ua8uUPFr 7.59am BST Around 813,000 workers have been cut from company payrolls in the last 12 months, as the pandemic has hit the jobs market hard.That’s based on company payroll data from tax office HMRC, released with the ONS this morning.Early estimates for March 2021 indicate that there were 28.2 million payrolled employees a fall of 2.8% compared with the same period of the previous year and a decline of 813,000 people over the 12-month period. Compared with the previous month, the number of payrolled employees decreased by 0.2% in March 2021 – equivalent to 56,000 people.  7.37am BST Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.The UK jobless rate has fallen for the second month in a row, but more workers have left company payrolls in March as the pandemic continues to grip the economy.#Breaking The number of UK workers on payrolls dropped by 56,000 last month and has fallen by 813,000 since March 2020 due to the impact of the pandemic, according to the Office for National Statistics (ONS)Commenting on today’s labour market data, ONS Director of Economic Statistics Darren Morgan said (1/3) pic.twitter.com/2C6SjI3gHdContinuing, Darren Morgan said: (2/3) pic.twitter.com/KLVzuVSBD8Darren Morgan added: (3/3) pic.twitter.com/jPsWK8I3pDEuropean stocks started the week in a subdued fashion, with the FTSE100 only just managing to close above the 7,000 level, while the DAX also slipped back from its record highs of last week.US markets also finished the day on the back foot, weighed down largely by weakness in tech stocks, which may well have been prompted by a large fall in Bitcoin over the weekend.Wall Street slipped from last week’s record highs as the Dow fell 123 points, the S&P 500 lost 22 points and the Nasdaq dropped 137 points https://t.co/GrBZn8yl01 pic.twitter.com/izyV5Ruu3H Continue reading...

Source: FTSE 100 posts biggest fall in two months as Covid-19 worries hit markets – as it happened