LONDON SHARES DOWN

REUTERS - JUNE 25, 2020 - London-listed shares dropped on Thursday as a surge in global coronavirus cases and mounting corporate damage from the pandemic dented hopes of a speedy economic recovery, while Non-Standard Finance crashed after warning of going concern risks.

The company tumbled 26.1% to a record low after saying the coronavirus crisis had halted lending, compounding its woes after a failed attempt to buy rival Provident Financial Plc.

The mid-cap FTSE 250 shed 0.9%, tracking a slide in global equity markets on fears that the spike in COVID-19 cases would lead to more lockdowns. The blue-chip FTSE 100 was down 0.2% after earlier falling as much as 1.5%.

"A huge problem for investors is that volatility is too expensive to buy right now, so they are finding it easier just to cut and run from their stock market positions," said Stephen Innes, markets strategist at AxiCorp.

Battered travel and leisure stocks slid 1.5% to a one-month low, while banking stocks tracked a decline in gilt yields.

Focus is also returning to the UK's trade negotiations following its exit from the European Union. Trade minister Liz Truss on Wednesday criticised the U.S. administration for talking a good game on free trade while restricting import access.

"Trade issues (are) a major downward factor for markets going ahead, considering the FTSE is highly export-driven," said Roland Kaloyan, equity strategist at SocGen.

Low-budget air carrier eazyJet shed 5.3% a day after reporting a bigger loss for the first half of the year due to the COVID-19 pandemic. It said on Thursday it had raised $520 million through a share placing to shore up liquidity.

Mitie Group jumped 6.3% after saying it would buy rival Interserve's facilities management arm for 271 million pounds ($336.64 million), using its financial muscle to gain scale in Britain's huge outsourcing industry at a time when others are struggling with the coronavirus fallout.

-----