logo
Plus   Neg
Share
Email

FTSE 100 Falls As Banks Cancel Dividends

U.K. stocks fell sharply on Wednesday after the Trump administration warned of weeks of pain still ahead and a survey showed U.K. manufacturing output fell at the fastest rate since 2012 in March.

U.S. President Donald Trump warned that the coronavirus pandemic could kill 250,000 Americans and that the next two weeks will be "very painful".

The IHS Markit/Cips purchasing managers' index (PMI) fell to a three-month low of 47.8 in March from 51.7 in February, as the coronavirus pandemic broke up supply chains and caused demand to slump.

The benchmark FTSE 100 tumbled 212 points, or 3.74 percent, to 5,460 after rallying 2 percent on Tuesday.

HSBC plunged 8.4 percent and Lloyds declined 5.4 percent after suspending dividend payments to shore up liquidity.

Barclays dropped nearly 6 percent, Royal Bank of Scotland gave up 5.5 percent and Standard Chartered plummeted 7.5 percent.

Commodities miner Glencore tumbled 4.3 percent. The company deferred a decision on its dividend payout for this year, warning of material disruption to production.

Residential developer Taylor Wimpey fell over 5 percent. The company announced a pay cut to Executive Directors to conserve cash due to the coronavirus or Covid-19 crisis.

For comments and feedback contact: editorial@rttnews.com

Follow RTT