FTSE 100 falls on COVID-19 risks

The FTSE 100 dropped on Monday as rising coronavirus cases across Europe stoked worries about its near-term economic impact, while Signature Aviation jumped on reaching an agreement for a takeover deal with Global Infrastructure Partners.

The blue-chip FTSE 100 index fell 0.5%, after gaining for five consecutive sessions, with auto and healthcare stocks leading the declines.

Britain’s chief medical adviser Chris Witty warned that the next few weeks of the COVID-19 pandemic will be the worst as the new, highly-infectious variants of the virus rampage across the country.

“COVID-19 risks have taken centerstage again after last week’s rally and the only reason why the FTSE 100 has not fallen further today is because the pound has taken most of the heat,” said Connor Campbell, a financial analyst at SpreadEx.

The British pound dropped 0.5% against the U.S. dollar to its lowest level since Dec. 29 due to concerns about the spread of the virus in the country.