London Stocks Plummet As Covid-19 Vaccine Is Delayed

September 17, 2020

FTSE 100 stocks are plummeting due to the coronavirus vaccine having to be put on hold. The vaccine, led by Oxford University, has resulted in an unprecedented illness in one of the volunteers.

Global trials and later-stage trials have been paused, allowing time for the data to be reviewed thoroughly and safely. However, this has weakened the pound following AstraZeneca Plc declining 1.1%.

Analyst Reaction

Russ Mould, AJ Bell investment director, said:

This news won’t help investor sentiment given a vaccine is the most likely route to some sort of normality, although Astra’s effort is just one of several being trialled globally and some hiccups are to be expected in the development of any new medicine.”

As well as the vaccine being put on hold, social distancing rules have been changed once again, causing a fall in UK leisure and travel stocks.

A huge blow to the FTSE 250 could be identified on Thursday morning, with the JD Wetherspoon pub chain taking one of the biggest hits.

London Stocks Are Plummeting Across Many Different Markets.

Investors in tech companies such as Apple and Facebook who were beginning to sell sales experienced a reprise on Monday, only to see share prices continue to drop into Tuesday. These sell-offs will inevitably have an effect on the FTSE 100.

As of Wednesday, the London market could already be seen to be suffering following these sell-offs, and the Index was down 0.1%.

One of the latest blows to high streets across Britain is the closure of 29 Pizza Hut restaurants. These closures will put approximately 450 jobs at risk.

A spokeswoman for the company said: “We are committed to doing the right thing, and in order to secure as many jobs as possible and continue serving our communities, we are working to reach an agreement with our creditors.”

Pizza Hut has suggested that while the 29 closures will cause a hit to jobs across those restaurants, the company will aim to protect a further 5,000 jobs within their remaining restaurants, of which there are 215 across the UK. They also aim to maintain the longevity of the Pizza Hut business.