BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - U.K. stocks were moving lower on Wednesday after official data showed the U.K. economy contracted the most since the global financial crisis in 2008, due to the measures adopted to reduce the transmission of the coronavirus.
GDP fell 2 percent sequentially in the first quarter, which was the largest decline since the fourth quarter of 2008. Economists had forecast a fall of 2.5 percent.
On a yearly basis, GDP decreased 1.6 percent, marking the biggest contraction since late 2009. This was also slower than the expected decline of 2.1 percent.
Separately, data published the British Retail Consortium revealed that U.K. retail sales declined the most since records began in 1995 due to coronavirus lockdown.
Total retail sales plunged 19.1 percent year-on-year in April compared to a 2.4 percent rise in April 2019. This was the worst decline recorded since the BRC started monitoring in January 1995.
The benchmark FTSE 100 dropped 68 points, or 1.14 percent, to 5,926 after climbing 0.9 percent in the previous session.
Travel and tourism-related stocks were coming under selling pressure after U.K. Health Secretary Matt Hancock warned Tuesday that summer holidays are likely to be cancelled this year.
Carnival and InterContinental Hotels Group lost over 7 percent while easyJet tumbled 4.4 percent.
TUI gave up 3.6 percent after the travel group reported widening losses and warned of 8.000 job losses, as it strives to cut costs by 30 percent in a major restructuring.
Software group Sage rallied 3.8 percent after it reported a 39 percent rise in first half profits.
Offshore wind jackets fabricator Lamprell plunged 12 percent after reporting a wider net loss last year and withdrawing its 2020 revenue guidance.
Copyright RTT News/dpa-AFX