London Markets: Recovery plays slump in London after Austria lockdown
It was a classic rotation away from recovery plays into defensive and stay-at-home stocks after Austria announced a lockdown and Germany said it was contemplating such a move.
The FTSE 100
fell 0.6% to 7,211.56. .
British Airways owner International Airlines Group
was the worst decliner, shedding 5%. Engine maker Rolls-Royce
and catering group Compass
also lost ground.
Airport restaurant operator SSP
was the worst FTSE 250 component, followed closely by easyJet
Food delivery companies however rose, with Ocado Group
and Just Eat Takeaway.com
which has been buoyed by deliveries, and Lysol maker Reckitt Benckiser
So far there’s little indication the U.K. government will join the lockdown moves, though the infection rate in the U.K. is slightly higher than Germany’s. Prime Minister Boris Johnson is counting on the rollout of boosters to slow the tide.