UK stocks have fallen as major UK and US stimulus plans failed to quell worries about the coronavirus pandemic. The FTSE 100 index of top UK companies fell more than 4.7% in early trading, with aerospace firms, travel companies and housing firms leading the declines.
It came after Wall Street’s main indexes rebounded by more than 5% on Tuesday following Monday’s steep falls. In the US, the Trump administration outlined a $1 trillion (£830bn) package to support the world’s biggest economy.
And on Tuesday UK Chancellor Rishi Sunak revealed more stimulus measures for UK firms, including £330bn of business loans. It includes £20bn in other aid, a business rates holiday, and grants for retailers and pubs. Help for airlines is also being considered.
Mr Sunak told a news conference that it was an “economic emergency. Never in peacetime have we faced an economic fight like this one.”