London's FTSE extends losses, broader Europe recovers

London's blue chips fell on Tuesday as a fast-spreading new coronavirus strain in the UK pushed more countries to shut their borders, while broader European markets recovered following the approval of a long-awaited U.S. aid package. London's FTSE 100 dropped 0.2% to hover near their three-week lows, with materials and energy shares leading declines. The U.S. Congress on Monday approved an $892 billion fiscal stimulus following days of furious negotiation.

London's blue chips fell on Tuesday as a fast-spreading new coronavirus strain in the UK pushed more countries to shut their borders, while broader European markets recovered following the approval of a long-awaited U.S. aid package.

London's FTSE 100 dropped 0.2% to hover near their three-week lows, with materials and energy shares leading declines. Strict lockdowns went into effect in Britain to curb the spread of the new strain said to be up to 70% more transmissible than the original, triggering border bans and travel restrictions from several countries.

The pan-European STOXX 600 index, meanwhile, rose 0.6%, recovering from its biggest one-day loss in nearly two months on Monday. The U.S. Congress on Monday approved an $892 billion fiscal stimulus following days of furious negotiation. President Donald trump is expected to sign it into law, keeping hopes of an economic recovery alive.