Rolls Royce share price slumps, dragging FTSE 100 lower
The UK engineering company saw its shares fall 17% in early morning trading, with the stock leading the FTSE 100 lower on Wednesday as coronavirus fears drive further panic selling.
Rolls-Royce shares have fallen 17% in early morning trading, with the stock leading the FTSE 100 lower on Wednesday as coronavirus fears drive further panic selling of UK equities.
In its full-year results in February, Rolls-Royce admitted then that Covid-19 represented a macro risk that would have a significant impact on air traffic growth in the near term but said that long term growth trends remain intact.
However, a recent report by aviation consultancy CAPA forecast that many global airlines are at risk of going bust as early as June unless they are provided government aid.
Rolls-Royce is trading at 323p a share as of 08:55 (GMT) on Wednesday, down from £6.81 at the start of the year, representing a 53% decline.
FTSE 100 falls further despite £330 billion stimulus
Earlier this week, UK Chancellor Rishi Sunak unveiled plans to offer £330 billion in government-backed loans to British businesses struggling to cope with the economic impact of the Covid-19 outbreak.
Despite emergency action being taken, UK equities continue to fall, with the FTSE 100 and the more domestically-focused FTSE 250 both tumbling 4% on Wednesday.
UK asks Rolls-Royce for ventilators to fight Covid-19
British Prime Minister Boris Johnson said that he would talk to manufacturers and request their support in making ‘essential medical equipment’ for the National Health Service (NHS), a spokesman for his Downing Street office said.
‘He will stress the vital role of Britain's manufacturers in preparing the country for a significant spread of coronavirus and call on them to step up and support the nationwide effort to fight the virus,’ the spokesman said.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
React to global volatility
Market volatility continues as coronavirus concerns amplify. Trade with IG and take advantage of:
- Tight spreads – from just 1 point on major indices, and 2.8 on US crude
- Guaranteed stops – they’re free to use, and only incur a fee when triggered
- Round-the-clock assistance – our highly skilled team are available when you need support
Live prices on most popular markets
You might be interested in…
Find out what charges your trades could incur with our transparent fee structure.
Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.
Stay on top of upcoming market-moving events with our customisable economic calendar.