London stocks drop as containment measures bite

London's stock markets sank deep into the red again on Tuesday as shares in pub operators and catering giant Compass Group dived on the back of the latest measures taken to contain the coronavirus, both domestically and globally.

Shares of the world's biggest catering firm slumped 22.2% to their lowest since June 2013 after the company forecast half-yearly operating profit would come in way below expectations due to steps taken in Europe and North America to contain the spread of the virus. Prime Minister Boris Johnson on Monday ordered the most vulnerable to isolate for 12 weeks and asked people to avoid pubs, clubs, restaurants, cinemas and theatres, stopping short of ordering them to close.

The domestically focussed FTSE MID250 index gave up early gains to trade down 3.0% in its ninth straight session of losses, with pub operators JD Weatherspoon and Marston's sliding 10% and 28% respectively. The blue-chip FTSE 100 fell 2.0% as the mood turned grim after trying to stabilise earlier in the session.

"People come in sniffing for bargains, they bid it up, and then any rally at the moment, it's just getting sold," said Neil Wilson, an analyst at online trading platform Markets.com. Wall Street witnessed historic falls on Monday, with the S&P 500 posting its worst day since the 1987 "Black Monday" rout after a series of emergency interest rate cuts and cash injections from central banks failed to reassure investors that the economic damage from the virus can be curtailed.

Through Monday, the number of confirmed coronavirus cases in the United Kingdom rose to 1,543, up from 1,372 the day before, while the UK death toll rose to 55. British Finance Minister Rishi Sunak is expected to outline more support for businesses hurt by the outbreak, after he unveiled 30 billion pounds ($37 billion) in stimulus package last week.

Meanwhile, the Group of Seven finance leaders are expected to hold a conference call later in the day. There was no respite for travel stocks, with British Airways parent IAG, easyJet and Wizz Air falling between 4.4% and 10% as airlines made unprecedented cuts to flights, costs and staffing and stepped up calls for emergency aid.

Among the gainers, Chilean copper producer Antofagasta jumped 13.9% after posting higher annual profit aided by higher sales and lower costs, but flagged review of its spending plans due to the tough global economy. British electricals retailer Dixons Carphone rose 5.8% after it saying it would axe 2,900 jobs as it closes all 531 UK standalone Carphone Warehouse.

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