LONDON: London stocks closed sharply lower for the second straight session on Tuesday as worries about fresh Covid-19 curbs across parts of England offset the impact of progress in Brexit talks and of positive results from Europe's biggest bank HSBC.
The blue-chip FTSE 100 index slipped 1.1% in choppy trading, dragged lower by mining, energy and insurance stocks. The domestically-focussed FTSE 250 index slid 1.5% with shares in online trading platform Plus500 Ltd falling 8.2% to the bottom of the index on a dour outlook.
The Bank of England is expected to ramp up the size of its asset purchase programme by a further 100 billion pounds on Nov. 5 to support a struggling economy, a Reuters poll of economists found. Meanwhile, the European Commission said the European Union and Britain are engaging intensively to clinch a Brexit deal on their future relationship.
In a bright spot, Asia-focussed HSBC Holdings Plc jumped 3.4% after it signalled a pandemic-induced overhaul of its business model. Bloomsbury Publishing Plc gained 18.1% after the Harry Potter publisher posted higher first-half profit and resumed dividend payments.
Uncertainty over a Brexit trade deal and concerns about the financial fallout from coronavirus-related restrictions have pressured British markets this month, with data also pointing towards a faltering economic recovery. The latest industry survey showed Britain's retail sales this month fell to the lowest level since June, after hitting an 18-month high in September.
In the latest round of restrictions, Warrington in northwest England was placed on the highest Tier 3 alert level, while Nottingham in central England and three nearby towns would have similar restrictions from Thursday.
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