inferior. The index still managed to post its best quarter since 2010, despite falling 0.9% on the last day of June – it has climbed 9% since early April.
The UK economy also experienced its deepest recession since 1979, with gross domestic product falling 2.2% between January and March, according to data from the Office for National Statistics released on Tuesday.
In an attempt to stem the tide of gloomy news, Prime Minister Boris Johnson unveiled a £ 5 billion ($ 6.15 billion) postcoronavirus stimulus package to build homes and infrastructure. The FTSE 100 fell 0.9%, while the more domestic-oriented FTSE 250 fell 0.5%.
stocks fell 3.9% after oil major said it would depreciate between $ 15-22 billion in the second quarter and lowered its medium and long-term outlook for oil and prices because of the pandemic. The update has dragged BP counterpart
2.5% less. BP announced earlier this month that it will also cut up to $ 17.5 billion, in part due to the coronavirus crisis.
“In a world where demand for oil is declining and where renewable energies are more advanced, these energy titans are more and more like creatures of another era, which should prompt investors to think about it,” a said Chris Beauchamp, chief market analyst at IG.
“While neither Shell nor BP will go anywhere soon, their importance as dividend payers will likely diminish compared to other sectors,” he added.
Smiths Group Engineering Firm
was the largest increase in the index, up 8% as it reported that revenues since the start of the year had jumped 6%. The company also announced a restructuring program to ensure it “will emerge stronger” from the coronavirus crisis.