London stocks slip as second virus wave fears build

UK shares fell on Thursday as a surge in coronavirus cases in the United States and China fanned fears of a second wave of infections, with investors also awaiting a Bank of England policy meeting later in the day.

UK shares fell on Thursday as a surge in coronavirus cases in the United States and China fanned fears of a second wave of infections, with investors also awaiting a Bank of England policy meeting later in the day. The blue-chip FTSE 100 was down 0.6% following its strongest two-day percentage gain in two weeks on Wednesday, as the resurgence in cases overshadowed optimism about a swift economic recovery from the pandemic-driven slump.

Expectations are now running high for the Bank of England to announce an increase of at least 100 billion pounds ($125 billion) in its bond-buying program to further boost liquidity. The mid-cap FTSE 250 fell 0.4%, with auto, travel, and mining stocks leading declines.

Homebuilder Taylor Wimpey tumbled 7.4% to the bottom of the FTSE 100 after raising 522 million pounds ($655 million) in a discounted share sale, representing about 11% of its existing share capital.