BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - U.K. stocks gave up early gains to turn lower on Tuesday, with travel-related stocks bearing the brunt of the selling, amid signs that the country will extend the lockdown by another three weeks to May 7th.
Foreign minister Dominic Raab, deputizing for Prime Minister Boris Johnson who is recovering from Covid-19, is likely to extend the lockdown until at least May 7, the Times reported.
British finance minister told colleagues the U.K. economy could shrink by up to 30 percent this quarter due to the coronavirus lockdown that has shuttered businesses.
The benchmark FTSE 100 was down 29 points, or half a percent, at 5,813, giving up early gains.
Cruise ships operator Carnival slumped 7 percent while hotelier InterContinental Hotels Group lost 6.3 percent.
American Tobacco fell over 5 percent on reports of a U.S. criminal probe.
AstraZeneca tumbled 5 percent. The pharmaceutical company said a phase III trial for its Tagrisso drug showed 'overwhelming efficacy.'
Sirius Real Estate, an operator of branded business parks in Germany, dropped 1.3 percent. The company said its board is unable to provide future financial performance guidance due to Covid-19 pandemic.
Energy and services company Centrica declined 3.5 percent after announcing the appointment of Chris O'Shea as Group Chief Executive on a permanent basis with immediate effect.
In economic releases, U.K. financial services optimism deteriorated in the first quarter as firms see a sharp decline in business in months ahead amid coronavirus pandemic, survey data from the Confederation of British Industry and PricewaterhouseCoopers showed.
A balance of -41 percent was less optimistic about the business situation in the first three months of 2020. Moreover, a balance of 30 percent forecast a fall in business volumes in the June quarter.
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