The downed British property market and investor concerns over Donald Trump threatening new tariffs against China have hit major UK listed stocks.
The leading FTSE 100 index fell another 2.3% after suffering its worst loss in a day Thursday for a month because the effects of COVID-19[female[femininethe bottlenecks of the global economy have become clearer.
It canceled gains seen earlier in the week after signs from several countries eased coronavirus restrictions.
The slide continued after the President further intensified anti-Chinese rhetoric as he warned of retaliatory tariffs against Beijing as a punishment for not containing the epidemic.
Trump said he saw evidence that coronavirus is from a laboratory in Wuhan, but declined to give details.
Meanwhile, at home, new data has shown that the number of mortgages approved by home buyers plunged to a seven-year low in March.
The sharp fall occurred amid signs that households are tightening their belts and getting their finances in order by making large payments on other types of loans such as credit cards.
The figures of bank of england show that 56,161 mortgages were approved for the purchase of a home in March.
This is almost a quarter (24%) lower than the previous month, and the lowest monthly total since 54,341 approvals was recorded in March 2013.
Households also repaid a total of £ 3.8 billion of consumer credit in March, including personal loans, overdrafts and credit cards, which represented the largest net repayment recorded by the Bank in credit and money matters.
Separate data indicates that manufacturers suffered the largest decline in production and orders in at least three decades in April.
The closely watched purchasing managers’ index (PMI) for the sector fell to 32.6 last month, with anything below 50 being seen as a sign of a shrinking industry.
The drop, from 47.8 in March, is one of the largest since the first IHS Markit / CIPS surveys conducted 28 years ago, according to those who compiled it.
It also beats the previous lowest score of 34.5, which was recorded in February 2009 during the financial crisis, and means that manufacturing in the UK has been down for 10 of the past 12 months.
:: Listen to the Daily podcast on Apple Podcasts, Google Podcasts, Spotify, Spreaker
Rob Dobson, director at IHS Markit, which compiles the survey, said: “Manufacturing in the UK suffered its worst month in recent history in April as production, order books and employment fell all dropped at rates far exceeding anything seen in the 28 years of the PMI survey. history. “
He added: “The outstanding question remains how long the current restrictions will have to stay in place and which areas can safely start to reopen.
“The pressure is mounting as the more the global economy remains stuck, the higher the cost to industry and the more likely more jobs will be lost. “