FTSE slips back on growing virus fears

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UK stocks traded lower on Monday, giving in to fears of a second wave of global coronavirus infections as the number of cases rose in Germany, China and the US.

In a seesaw session the FTSE 100 lost 47 points of 0.8% shortly after the opening then recovered gradually to trade flat at lunchtime, but gave those gains back over the afternoon to end the session down 47 points or 0.8% again at 6,245.

There were heavy losses for travel firms Carnival and IAG, owner of British Airways, which gave up 10% to £11.15 and 5% to 258p respectively.

Other large-cap losers included aircraft engine maker Rolls-Royce, down 4.3% to 320p, drinks group Diageo down 3.5% to £28.00 and HSBC down 2.7% to 381p.

Sportswear retailer JD Sports Fashion was another faller, losing 2.7% to 630p after announcing that it was looking at a number of 'strategic options' for camping and outdoor clothing retailer Go Outdoors.

The update came in the wake of media speculation that Go Outdoors was on the brink of administration.

Saga, a services provider for the over-50s, drifted 0.9% lower to 18.3p despite securing a debt repayment holiday for two cruise ship loans until the end of March 2021.

Saga said no dividends could be paid while the debt remained outstanding. The company had refunded £44m of advance receipts to customers, as cruise ships remained idled.

Cinema group Cineworld shed 1% to 76.6p, even as it beefed up its credit lines by securing a $250m secured debt facility with a 2023 maturity.

Infant merchandise retailer Mothercare fell 12.5% to 7p despite the news that around two-thirds of its partners' global retail locations were now open following an easing of government lockdowns.

Mothercare also revealed that it had shortlisted chief executive candidates, and remained in talks with a number of prospective debt providers.

Guarantor loan firm Amigo Holdings was an even bigger losing, crashing 28% to 7.1p as it warned of a material hit to its earnings ollowing a wave of customer complaints.

Real estate investor Segro gained 2.2% to 899p after it sold an Austrian property to to Nuveen Real Estate for €65m, marking its exit from that market.

AIM-listed videogame developer and publisher Codemasters rose 1.7% to 336p as it reported a sharp rise in profit thanks to people entertaining themselves during lockdown.

One of the day's standout performers was aviation services group John Menzies, which soared 7% to 155p on announcing that it had a better than hoped second quarter and it had enough liquidity to see it through the end of this year and into 2021.