October 29, 2020

Coronavirus: UK and US stocks dive despite stimulus plans

Financial markets tumbled again on Wednesday as major stimulus plans failed to quell worries about the economic impact of the coronavirus.

The Dow led the declines in the US, falling more than 4%, while the S&P 500 and Nasdaq dropped more than 3%.

The FTSE 100 index of top UK firms fell more than 3%, with aerospace, travel and housing firm among the hardest hit.

The pound meanwhile fell to its lowest level against the dollar in over three decades, trading at $1.18.

The US on Tuesday outlined a $1tn (£830bn) package to support the world’s biggest economy.

UK chancellor Rishi Sunak also revealed a £350bn stimulus package for UK firms, including £330bn of business loan guarantees.

It also included aid to cover a business rates holiday and grants for retailers and pubs. Help for airlines is also being considered.

Mr Sunak told a news conference: “Never in peacetime have we faced an economic fight like this one.”

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