Housebuilders lead FTSE 100 bounce as China virus fears ease

Many global markets held firm as Chinese authorities ramped up efforts to control the outbreak of the coronavirus.
22 Jan, 2020
  • Many global markets held firm as Chinese authorities ramped up efforts to control the outbreak of the coronavirus.
  • The drop came after Boeing warned of a further delay in winning approval to return its 737 MAX jets to service.
  • He also suggested that there could be a hint of profit-taking, given the recent rally in shares.

The main index edged up 0.1pc, with Berkeley jumping 5pc to a record high and an index of homebuilders  hitting its highest level since October 2017. The FTSE 250 was flat by 0915 GMT.

Many global markets held firm as Chinese authorities ramped up efforts to control the outbreak of the coronavirus, which is being likened to the 2002-2003 spread of Severe Acute Respiratory Syndrome (SARS) and has already led to nine deaths.

Sage Group rose 4.4pc and also supported the main bourse as the software provider reported higher quarterly revenue and affirmed its annual forecast.

However, Burberry slid 3.3pc to lag the blue-chips, despite a solid performance through the Christmas quarter.

"The reminder of how closely the company's fortunes are tied to China may have provoked some nervousness given the deadly virus which is currently afflicting the country," AJ Bell investment director Russ Mould said.

He also suggested that there could be a hint of profit-taking, given the recent rally in shares.

Further restricting gains was a dip in Shell and BP  as oil prices fell, and miner Antofagasta which dipped 2.4pc after its copper production was hit by civil unrest in Chile.

London-listed shares of German travel firm TUI skidded 6.4pc to its lowest since September 2019.

The drop came after Boeing warned of a further delay in winning approval to return its 737 MAX jets to service.

Small-cap fashion retailer Ted Baker sank as much as 10pc after it more than doubled its preliminary estimate of an overstatement in inventory.

A combination of multiple profit warnings, subdued consumer sentiment and a slew of management changes after allegations of misconduct against founder Ray Kelvin had knocked more than 70pc off the stock's value last year.

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