London’s FTSE 100 dropped to a two-week low on Tuesday amid a near 7% drop in HSBC as traders sold stocks globally on the back of an earnings warning from Apple
London’s FTSE 100 slid to a two-week low on Tuesday, weighed down by a near 7% drop in financial heavyweight HSBC as traders sold stocks globally on the back of an earnings warning from tech giant Apple due to the coronavirus epidemic.
The main index shed 0.9%, with HSBC dragging a sub-index of banks over 4% lower after its annual profit declined and it laid out plans for a major strategic overhaul that included 35,000 job cuts and the halting of share buybacks.
The losses followed modest rises in the previous session when China introduced more stimulus measures to shore up its economy and as many investors were observing a U.S. holiday.
Holiday Inn-owner InterContinental Hotels outshined, though, gaining 1.6% despite it saying it would take a hit from the virus after a fall in revenue per room due to the impact of the past year’s protests in Hong Kong.
Utilities Severn Trent and United Utilities also outperformed the broader market, climbing about 2% each after JPMorgan sounded bullish on the sector following a recent price control published by Britain’s water regulator.
NMC Health advanced for the second straight session climbing 5.4%, a day after its founder BR Shetty resigned as co-chairman of the healthcare company amid doubts about the shareholdings of its major investors. The company is still worth less than half of what it was three months ago.
But AIM-listed engineering firm Tekmar sank 25% after it warned results would now be worse than previously thought thanks to a halt in shipments to and from China.