LONDON: London’s FTSE 100 fell on Wednesday on concerns that a recent jump in coronavirus infections could hinder the pace of economic growth, taking the shine off the fifth straight monthly gain for the blue-chip index.
The FTSE 100 eased 0.7%, but clocked its best monthly winning streak since 2016.
Heavyweight financials led declines, down 0.7%, followed by base and precious metal miners which were down 1.2% and 0.8% respectively.
The index has gained 8.9% so far this year to stand just under 12% away from its record high. However, it has significantly underperformed its European peers with the STOXX 600 hovering near its all-time high, as inflation concerns and rising Covid-19 infections hinder the recovery process.
Retailers slipped 0.4% after an industry group said growing costs linked to Covid-19 and Brexit might add to the rise in broader inflation soon.
Automakers fell 1.1% after car dealership Pendragon warned that vehicle orders were being delayed due to a global chip shortage and flagged further supply constraints in the second half.
Opioid addiction treatment maker Indivior Plc rose 6.4% to the top of the FTSE 250 index after it said its 2021 revenue and profit would be significantly above its previous outlook.
Non-Standard Finance slid 23%, after the British sub-prime lender said it plans to close its guarantor loans division.
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