It was a classic rotation away from recovery plays into defensive and stay-at-home stocks after Austria announced a lockdown and Germany said it was contemplating such a move.
The FTSE 100
UKX,
fell 0.6% to 7,211.56. .
British Airways owner International Airlines Group
IAG,
was the worst decliner, shedding 5%. Engine maker Rolls-Royce
RR,
and catering group Compass
CPG,
also lost ground.
Airport restaurant operator SSP
SSPG,
was the worst FTSE 250 component, followed closely by easyJet
EZJ,
Food delivery companies however rose, with Ocado Group
OCDO,
and Just Eat Takeaway.com
JET,
Royal Mail
RMG,
which has been buoyed by deliveries, and Lysol maker Reckitt Benckiser
RKT,
advanced.
So far there’s little indication the U.K. government will join the lockdown moves, though the infection rate in the U.K. is slightly higher than Germany’s. Prime Minister Boris Johnson is counting on the rollout of boosters to slow the tide.
This post was originally published on Market Watch
