FTSE 100 slides as China reports a resurge in COVID-19 cases

The UK blue-chip FTSE 100 index remained under pressure on Monday as China reported a significant increase in new COVID-19 cases again.

The FTSE 100 opened at 6,105.18 but closed less than 1% down at 6,059.33 after posting a three-week low of 5,957.49 in the morning session. On the year to date basis, the blue-chip index is still more than 25% down.

FTSE 250 ended flat on Monday

The midcap FTSE 250 also remained weighed as Beijing reported underwhelming factory data on Monday. Opening at 17,077.34, the index dropped sharply to 16,743.38 in the morning session but recovered the entire loss later in the day to close at 17,081.37. On the year to date basis, the domestically focused index is currently a little under 25% down. Learn more about different stock exchanges and stock indices.

The FTSE 250 listed consumer and mining stocks were under pressure on Monday, but the decline was offset by the optimism of the utilities and real estate stocks. The pandemic related restrictions have resulted in an 82% year over year decline in footprint at the British shopping centres.

Investors are now interested in the monetary decisions that the Bank of England announces in its meeting scheduled for Thursday. According to the vice president Peder Beck-Friis of PIMCO:

“We expect them to leave the policy rate unchanged at 0.1% and to add 100 billion of quantitative easing purchases.”

London-listed stocks have been on the rise in the past two months. Last week, however, the rally was hindered as Coronavirus cases resurged and threatened the UK’s plans of lifting Coronavirus restrictions.

British Petroleum (LON: BP) contributed the most to the blue-chip index’s decline on Monday as the oil major estimated up to £13.9 billion of write-downs in the second quarter resulting in a 2.2% slide in its stock.

Other prominent price actions on Monday

Other prominent price actions on Monday included a 9.8% increase in Bunzl (LON: BNZL) as the business supplies distributor estimated its revenue to grow by 6% in the first half of the current financial year. The British-Swedish multinational pharmaceutical company, AstraZeneca, also printed a 1% intraday gain in the stock market on Monday.  

Travel stocks (.FTNMX5750) were down 1.3% as Coronavirus continues to weigh on demand. EasyJet resumed flying after more than two months but the British low-cost airline was still reported 4.6% down in the stock market on Monday.