FTSE 100 falls as Trump admits pandemic will ‘get worse before it gets better’

European stock markets have fallen after a notable change in tone from US president Donald Trump.

Amid a spike in virus cases across the Pond, Trump admitted the coronavirus pandemic will "get worse before it gets better". Despite not wearing a mask at a press briefing, the president changed his approach – now asking Americans to wear face coverings.

The downbeat signs for the world’s largest economy will not go down well in markets, which have been broadly positive this week on positive news over a potential Covid-19 vaccine and yesterday’s sealed EU fiscal rescue package.

The dollar is sliding while gold and silver – traditional safe havens for nervy investors – have enjoyed a spike in their prices. Gold is near highs not seen since 2011 - hitting $1861 per ounce today - and analyst reckon it could break $2000 as a lack of options for investors elsewhere, amid ultra-low interest rates, pushed them to gold.

US traders arealso closely watching discussions over a new stimulus bill in Washington to prop up the ailing economy, although senators have indicated it is unlikely to be passed this week denting sentiment.

CMC Markets’ chief market analyst Michael Hewson said: “The US dollar has had a disappointing 24 hours, losing ground across the board with the Australian dollar the main beneficiary, as a result of a strong move higher in commodity prices, with gold, silver and copper all pushing higher. Gold prices hit a new nine year high, while silver prices hit a fresh six year high. The greenback also slid against the euro pushing below its June lows, and heading back towards the lows last seen in March.”

CMC called the FTSE 100 fell 53.55 points to 6216.05, along with slides for Germany’s DAX and France’s CAC40.

On a busy day for UK corporate updates, London bus operator Stagecoach reported profits had halved but that passenger numbers are improving, and the share rose 6% to 54p and B&Q owner Kingfisher was the FTSE 100's biggest riser after posting a surge in sales during lockdown.