Britain's FTSE 100 pulled back on Wednesday, as a rising global death toll crushed hopes that the coronavirus crisis was subsiding, while insurers took a hit over halts in dividend payments and Tesco warned of a surge in costs.
The blue-chip FTSE 100 index ended 0.5% lower after closing at a near two-week high on Tuesday. It is still up 4.8% for the week.
Shares of Aviva Plc and Direct Line, RSA and Lloyds of London-member Hiscox fell between 3.8% and 7.9% after saying they were cancelling 2019 investor payouts.
Both EU and British regulators had urged restraint on dividend payments and payment of bonuses as a buffer against potential losses from the pandemic.
Legal & General, which said last week it remained committed to distributing its own dividend, was down 3.8%.
Tesco, Britain's biggest retailer, fell 0.6% as it forecast costs from the pandemic of up to 925 million pounds ($1.1 billion) and warned it was unable to give a profit forecast for the current year.
However, it defended its decision to pay dividend. Fellow retailers Sainsbury and Morrison fell 4% and 0.8%, respectively.
Companies listed on the pan-European STOXX 600 are expected to post a 30.2% slump in second-quarter earnings, according to Refinitiv data, versus a 21.9% decline forecast just a week ago.
Online fashion retailer ASOS Plc soared 28% after saying it had raised 247 million pounds ($304 million) via a placing, to help it shore up its finances against any prolonged business downturn.
Recruiter PageGroup rose 5.7% after it said it would shed another 250 staff in April and cut directors' pay by 20% in efforts to ride out the health crisis.