Left Menu
Development News Edition

London stocks rebound from worst day since 1987 crash

Reuters | Updated: 13-03-2020 15:46 IST | Created: 13-03-2020 15:46 IST
London stocks rebound from worst day since 1987 crash

London stocks rose on Friday as a recovery in oil prices and moves by policymakers to limit the economic hit from the coronavirus helped them rebound from their worst selloff since the 1987 "Black Monday" crash a day earlier.

The blue-chip FTSE 100 rose 3.2%, but was still on course to post its worst week since the global financial crisis in 2008. Helping the slight move up on Friday were miners, supermarket chains and oil & gas producers.

"It was perhaps inevitable, given that the FTSE suffered its second worst session ever yesterday and it's probably some people deciding to buy at those lows," said Connor Campbell, analyst at financial spread better Spreadex. Global equities were hammered on Thursday after U.S. President Donald Trump shocked investors with a move to restrict travel from Europe, with the ECB's decision to hold off on interest rate cuts adding to panic about a liquidity crunch.

Emergency actions including the Bank of England's 50 basis point interest rate cut and the UK government's 30 billion-pound ($39 billion) stimulus plan have also failed to reassure investors about economic growth. Traders are now hoping that U.S. lawmakers and the White House will agree on a stimulus package, expected to be announced on Friday.

Travel stocks continued to be the worst hit, with Carnival Corp tumbling 7.9% to its lowest level since 2009 after its unit, Princess Cruises, said it would suspend the voyages of all its 18 ships for two months. Shares in holiday company TUI dropped 9.5%, while travel group Saga fell 3.9% after suspending its cruise operations until early May in response to the coronavirus crisis.

The domestically focussed FTSE mid-cap index was up just 0.5%. Oil producer Premier Oil surged 56.1% and was on course for its best day in over four years, after eyeing at least $100 million in potential savings on its annual capital spending plans to adjust to the plunge in global crude price.

BP Plc and Royal Dutch Shell Plc rose between 6% and 7%, tracking higher oil prices. Miners Rio Tinto, BHP group and Anglo American jumped more than 6% and were the top gainers on the main index.


TRENDING

OPINION / BLOG / INTERVIEW

Rethinking Rural Livelihoods in the Times of COVID-19

The reverse migration caused by COVID 19 pandemic has put an additional burden of about one crore people on Indian villages particularly in the states of Uttar Pradesh, Bihar, Bengal and Odisha. Besides increasing the risk of spreading the ...

‘Discounted Deaths’ and COVID 19: Anthropology of Death and Emotions

Death is a social event rather than the mere cessation of biological functions. As seen by anthropologists, death is not just physical but intensely social, cultural, and political....

Indigenous knowledge of communities a must for maximizing impact of community work

Generally, it has been observed that the majority of the academicians in higher education institutions neglect the wisdom of community people and throw their weight around thinking that they know everything and the community knows nothing. ...

In rebuking FBR, Pakistan’s courts take a stand for public health

The system, if implemented effectively, will allow Pakistans revenue service to combat the illicit trade in tobacco products and potentially add hundreds of millions of dollars to the states budget each year. ...

Videos

Latest News

Babri demolition: BJP leader Vinay Katiyar, five others appear before CBI court

BJP leader Vinay Katiyar, former MP Ram Vilas Vedanti and four other accused appeared before a special CBI court in the Babri demolition case here on Thursday. The court, however, recorded the statement of only Vijay Bahadur Singh for want ...

Basu Chatterjee: A legacy of slice of life films celebrating life in middle class lane

Basu Chatterjees cinematic world was a lived one, most of his films distilling the little joys and struggles that are the stuff of everyday life in the middle class lane and still relatable decades after they were made. His men were not ang...

Complete cyclone damage reports in 2 days, restore power: CM

Maharashtra Chief Minister Uddhav Thackeray on Thursday asked officials to complete panchnamas or inspection reports of losses due to cyclone Nisarga in Raigad district within two days. Speaking at a video conference to take a stock of dama...

Generational shift? Historian sees virus encouraging new values

The coronavirus pandemic could encourage a generation to turn away from a culture of selfishness, with young people now wanting to do jobs where they can help others, Dutch historian Rutger Bregman believes. Bregman, 32, whose latest book H...

Give Feedback