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| Version 2 | Version 3 |
|---|---|
| Lockdown fears hit travel, hotel and pub shares | Lockdown fears hit travel, hotel and pub shares |
| (32 minutes later) | |
| Leading shares across Europe have fallen sharply in morning trading amid fears that a renewed rise in coronavirus cases will blight economic prospects. | Leading shares across Europe have fallen sharply in morning trading amid fears that a renewed rise in coronavirus cases will blight economic prospects. |
| In London, the benchmark FTSE 100 share index was down more than 3%, with airlines, travel firms, hotel groups and pubs leading the rout. | In London, the benchmark FTSE 100 share index was down more than 3%, with airlines, travel firms, hotel groups and pubs leading the rout. |
| Worst hit was British Airways owner IAG, which slumped more than 12%. | Worst hit was British Airways owner IAG, which slumped more than 12%. |
| Similar falls were seen on markets in Paris, Frankfurt and Madrid. | Similar falls were seen on markets in Paris, Frankfurt and Madrid. |
| Banking shares were affected by an extra set of concerns as allegations of money-laundering surfaced in leaked secret files. | Banking shares were affected by an extra set of concerns as allegations of money-laundering surfaced in leaked secret files. |
| HSBC, the bank at the centre of the scandal, saw its share price fall more than 5% in London, but the revelations dragged down the entire sector, with Barclays, Lloyds and NatWest all dropping about the same amount. | |
| The downward trend affected all but a handful of stocks on the UK's 100-share index. Only online delivery service Just Eat, supermarkets Tesco and Morrisons and miner Fresnillo made it into positive territory. | |
| The FTSE 250 index, seen as a better reflection of the health of the UK economy, was down 4% by lunchtime. | The FTSE 250 index, seen as a better reflection of the health of the UK economy, was down 4% by lunchtime. |
| One of its biggest fallers was pub and restaurant owner Mitchells & Butlers, which dropped more than 15% as concerns grow that the hospitality industry would have most to lose from a fresh lockdown. | |
| The pound also lost ground against the dollar, falling 0.47% to $1.2863 by lunchtime. It fell marginally against the euro to €1.0910. | |
| Why does all this matter to me? | |
| Many people are more affected by stock market falls than they might think. | |
| There are millions of people with a pension - either private or through work - who will see their savings (in what is known as a defined contribution pension) invested by pension schemes. The value of their savings pot is influenced by the performance of these investments. | |
| Pension savers mostly let experts choose where to invest this money to help it grow and a proportion will be in shares. | |
| Widespread falls in share prices are likely to be bad news for these investments, although pension investors stress these are long-term investments and are designed to ride out bouts of weakness. | |
| 'Bitter pill' | 'Bitter pill' |
| Coronavirus cases have been surging in many European countries, as governments strive to avoid another round of national lockdowns. | Coronavirus cases have been surging in many European countries, as governments strive to avoid another round of national lockdowns. |
| In the UK, top scientists are warning that the country is at a "critical point" in the pandemic and "heading in the wrong direction". | In the UK, top scientists are warning that the country is at a "critical point" in the pandemic and "heading in the wrong direction". |
| Prime Minister Boris Johnson is understood to be considering a two-week mini-lockdown in England - being referred to as a "circuit-breaker" - in an effort to stem widespread growth of the virus. | Prime Minister Boris Johnson is understood to be considering a two-week mini-lockdown in England - being referred to as a "circuit-breaker" - in an effort to stem widespread growth of the virus. |
| Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: ''The FTSE 100 is worst hit among its European peers with a storm of pessimistic news swirling, affecting sectors across the board." | Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: ''The FTSE 100 is worst hit among its European peers with a storm of pessimistic news swirling, affecting sectors across the board." |
| She added that concerns for the travel industry had had a "domino effect", with aircraft engine manufacturer Rolls Royce hit, as investors saw no end to the falling demand for new planes. | She added that concerns for the travel industry had had a "domino effect", with aircraft engine manufacturer Rolls Royce hit, as investors saw no end to the falling demand for new planes. |
| At the same time, the prospect of evening coronavirus curfews, after a summer of recovering sales, was "a bitter pill to swallow" for the hospitality industry, | At the same time, the prospect of evening coronavirus curfews, after a summer of recovering sales, was "a bitter pill to swallow" for the hospitality industry, |
| If you add the prospect of a no-deal Brexit into the murky mix, there is little surprise so many investors seem to have caught a severe case of the jitters today.'' | If you add the prospect of a no-deal Brexit into the murky mix, there is little surprise so many investors seem to have caught a severe case of the jitters today.'' |