The FTSE 100 looks set for a subdued start to the trading week, resisting the pull of Asia’s main markets, which were hit by recurrent coronavirus jitters.
Japan’s Nikkei 225 led the decline with a 3.5% tumble amid worries the economic impact of the outbreak could be far more damaging that currently predicted.
Fears the global recession could be longer and deeper than thought pushed US oil prices below US$20 a barrel for the first time in 18 years.
The decline has been exacerbated by the supply war between Saudi Arabia and Russia, which has flooded the market with cheap crude.
This will have a significant impact on the marginal American shale producers in areas such as Texas, while closer to home UK giants Shell (LON:RDSA) and BP (LON:BP.) are expected to come under pressure.
This week is looks set to be a quiet one terms of scheduled market news with budget carrier Wizz Air (LON:WIZZ), engineer Smiths (LON:SMIN) and water firm Pennon (LON:PNN) among those updating the market.
Of course, it is the “unknown, unknowns” in the form of COVID-19 alerts and the profit warnings that will likely make the headlines on the financial pages.
There’s also raft of data from both sides of the Atlantic in the form of monthly purchasing managers’ data here in the UK and US non-farm payroll data later this week that will give an early guide to health of the two major economies.
Around the market: Pound down 0.6% at US$1.2384; gold worth US$1,642.10 an ounce, down US$12 an ounce; Brent crude US$23.49 a barrel, down US$1.44
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- Big hedge funds raise money to capitalise on market chaos
- China’s effort to end coronavirus lockdown meets local opposition
- Britain faces six months of curbs
- Stop bank dividend payouts, Andrew Bailey told
- Intu’s plea for help runs into criticism
- Loan defaults on car PCPs threaten £110bn finance sector
- Small pharmacies facing closure as drug prices rise
- ‘Bolder’ global rescue needed amid fears recession will last until 2021
- Rolls-Royce faces cash crisis as coronavirus decimates global aviation
- The Centre for Retail Research said more than 20,000 shops could close this year
- Taxpayers to shoulder £8bn railway pensions black hole
- Coronavirus forecast to cut UK economic output by 15%
- Morrisons gives food banks £10m during coronavirus outbreak
- Philip Green urged not to use coronavirus as ‘excuse’ over pensions