FTSE-100 plunges more than 1% as GDP figures show deep recession

The FTSE-100 Index plunged more than 1% today after data on the UK's dismal economic growth in the first quarter gave rise to fears about the bloodbath in GDP since March.

The gradual reopening of the economy helped the index rise yesterday although much of the gains were also due to a fall in the pound, which boosts the value of overseas earnings from UK multinationals.

But those gains were reversed today as the FTSE slumped 84.29 points to 5910.48, mirroring similar predicted falls in Germany and France.

Economists had been expecting a 2.5% fall in GDP quarter-on-quarter and it "only" came in at 2%, but the picture painted was still horrible. And investors bore in mind that this was for the three months to the end of March, before the main impact of coronavirus started to bite.

Much of the direction of the markets today will come from the US, where economic data is emerging at lunchtime, following the extremely weak data on inflation yesterday. Oil will also be a feature as new figures show how much US demand there has been for energy lately - a good measure of the economic activity.

The travel sector had another grim session, with Carival cruise liners, EasyJet and Intercontinental Hotels Group all falling 5% in early trading. Tour operator TUI warned of heavy job cuts and a prolonged slump in holiday bookings.

Builders fared better as the govenrment eased up the lockdown on housing purchases. FTSE titans Berkeley, Barratt and Taylor Wimpey all gained around 1% but the clear winner was mid-cap agent Foxtons , up nearly 10%.

Vodafone had another strong day, possibly benefiting from warm commentary in the Evening Standard yesterday. Adding to the previous session's gains, Voda rose another 1%.