UPDATE 2-London stocks dip as global virus cases rise; Glencore slides

  • Reuters
  • Stock Market News
UPDATE 2-London stocks dip as global virus cases rise; Glencore slides
Credit: © Reuters.

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* Miner Glencore tumbles on disclosing criminal probe

* Consumer stocks, energy, travel stocks lead declines

* Capita jumps on deal to sell legal process software product

* FTSE 100 off 0.8%, FTSE 250 down 0.6% (Adds comment, updates prices to close)

By Susan Mathew

June 22 (Reuters) - UK shares retreated on Monday as a surge in global coronavirus cases sparked fears of more lockdowns and economic damage, while Glencore slipped after disclosing a criminal investigation into the company.

The blue-chip FTSE 100 .FTSE lost 0.8% while the mid-cap FTSE 250 .FTMC slipped 0.6% for its worst drop in over a week.

London shares of Glencore GLEN.L touched a three-week low after Switzerland opened a criminal probe against the miner over allegations it had failed to have measures in place to prevent corruption in the Democratic Republic of Congo. decliners included consumer shares such as Diageo DGE.L and Unilever ULVR.L , and battered energy .FTNMX0530 and travel and leisure .FTNMX5750 stocks. the FTSE 250, outsourcing group Capita Plc CPI.L jumped 13.2% on a deal to sell its legal process software product. At the other end of the scale was Carnival (NYSE: CCL ) PLC CCL.L , down 10.2% after its cruise line extended an operational pause in North America until the end of September. stock markets have rebounded since a pandemic-driven crash in March and are on course to rise for a third straight month, supported by stimulus measures and a gradual restart of as businesses.

"Recovery will hinge on the confidence of involuntary savers to spend post-lockdown. One section of the population is flush with cash having experienced a forced rise in savings," said Neil Shearing, group chief economist at Capital Economics.

This will determine if the recovery underway is sustained, stalled or even reversed, he added.

The FTSE 100 still remains about 18% below its January record high and concerns are growing that a second wave of infections could cause more disruption to businesses.

A survey on Monday showed British industrial output recorded its biggest quarterly fall on record during the three months to June, and a further decline is likely in the months to come.

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