UK stocks fell on Tuesday as Royal Dutch Shell’s warning that it could take a $ 22 billion redemption dragged down the FTSE 100 UKX,
lower.
The UK economy also suffered its worst decline since 1979, as gross domestic product fell 2.2% between January and March, according to the Office for National Statistics.
The negative sentiment was compounded by a coronavirus outbreak located in the city of Leicester, which has now re-implemented some blocking measures.
In a bid to stem the flow of grim news, UK Prime Minister Boris Johnson unveiled a £ 5 billion ($ 6.15 billion) post-slag virus recovery plan to build homes and infrastructure.
The FTSE 100 fell 1%, while the more focused FTSE 250 nationwide fell 0.4%. Before today, the FTSE 100 was on its way to its best quarter since 2010, having risen 9.76% in the past three months.
RDSB shell,
RDSA
Shares fell more than 3%, after the main oil company said it would cut between $ 15 billion and $ 22 billion in the second quarter and reduced its medium and long-term outlook for prices and oil due to the pandemic. The update dragged BP BP BP,
2% lower. BP announced earlier this month that it would amortize up to $ 17.5 billion as well, in part as a result of the coronavirus crisis.
“In a world of falling oil demand and a stronger push for renewables, these energy titans are looking like more and more creatures from another era, something that should make investors think,” said IG’s chief analyst Chris Beauchamp.
“While neither Shell nor BP will go anywhere soon, their importance as dividend payers is likely to diminish relative to other sectors,” he added.
Smiths Group SMIN engineering company,
It was the largest increase in the index, rising 8% as it reported that revenue for the year to date had increased 6%. The company also announced a restructuring program to ensure it “emerges stronger” from the coronavirus crisis.
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