Market analysts pointed to a series of negative value moves that pushed the FTSE lower as it plunged 3% in the early hours of trading on Monday.
191 points were traded – 3.2% less – at 5,817 at 10 a.m., with companies exposed to new COVID-19[feminine[feminine restrictions, including travel agencies and home builders, have seen their actions face a new risk race.
Only five constituents of the FTSE 100 were in positive territory.
British Airways owner IAG was the biggest feller, down 14%, leaving shares 77% weaker since the start of the year,
Also among the losers were the banks – hit by the release of a report alleging that a number of global lenders had transferred large sums of illicit funds for nearly two decades despite concerns over the origin of the money.
the money laundering the claims, which spread to UK-listed HSBC and Standard Chartered, caused their respective stock prices to fall by more than 3%, pushing HSBC’s market value to a lowest in 25 years.
Rolls-Royce also said on Monday morning it was looking to raise up to £ 2.5 billion to bolster its balance sheet.
The prospect of a rights issue helped push his shares down by more than 10%.
It was a similar story for stocks across Europe after Asia started the week on the foot.
German DAX and CAC in Paris were more than 2.5% lower.
In the case of the pound, analysts pointed to further foreclosure risk pressure on the UK economy, which fell 0.5% against the dollar to trade at $ 1.2844.
The currency – a barometer of the progress of Brexit negotiations since the vote to leave the EU in 2016 – has already seen weeks of hardship due to the difficulties of trade negotiations.
Investors are asking for an agreement to follow the Brexit transition period on January 1.
Neil Wilson, chief market analyst at Markets.com, said the stock falls were based on the “September blues” of recent weeks that saw the death knell for US tech stocks disappear.
“European markets fell in early trading on Monday after US stocks fell for a third week in a row – the first such sustained decline in a year.
“The FTSE 100 fell below 5,900 and the DAX dropped the handle of 13,000 as risk aversion spread through the stock markets. ”
He said of the link between the virus and the declines: “Stricter rules are almost certain as authorities are floundering and appear unable to get a clear and consistent approach to the pandemic.
“Travel and recreation has been hit hard as new lockdowns and travel restrictions are almost acquired mid-term. “