<p>UK blue-chip stocks fell to a near three-week low on Monday as a fast-spreading new strain of the coronavirus prompted tougher restrictions, while a fresh ban on travellers from Britain hammered airline and oil stocks.</p>.<p>The FTSE 100 touched its lowest since Dec. 2 in early trading, but clawed back some of its losses to trade down 1.2 per cent as the pound's 2 per cent drop limited a fall in the exporter-heavy index.</p>.<p>BP and Royal Dutch Shell were the biggest drags on the index as oil prices fell more than 3 per cent on the latest round of European restrictions.</p>.<p>Shell also took a hit from its move to write down the value of its oil and gas assets by $3.5 billion to $4.5 billion following a string of impairments this year.</p>.<p>British Airways-owner IAG and easyJet fell about 8 per cent, while InterContinental Hotels Group dropped 4 per cent after its European neighbours and other countries cut transport ties due to fears about the new coronavirus strain.</p>.<p>"We are in the middle of a perfect storm of both Covid-19 and Brexit," said Stefan Koopman, senior market economist at Rabobank. "It is catastrophic as the entire island is cutoff from the continent and that has repercussions on the market."</p>.<p>The FTSE 100 has lost 14.3 per cent so far this year and is on course for the worst year since the global financial crisis in 2008-09 as pandemic-driven lockdowns battered the economy and led to mass layoffs.</p>.<p>The domestically focused FTSE 250, considered a barometer for Brexit sentiment, shed 1.9 per cent with no Brexit trade deal in sight and just days to go until a transition period expires at the end of the year.</p>.<p>Pub groups JD Wetherspoon and Mitchells & Butlers were also a drag on the index due to worries about the latest restrictions. </p>
<p>UK blue-chip stocks fell to a near three-week low on Monday as a fast-spreading new strain of the coronavirus prompted tougher restrictions, while a fresh ban on travellers from Britain hammered airline and oil stocks.</p>.<p>The FTSE 100 touched its lowest since Dec. 2 in early trading, but clawed back some of its losses to trade down 1.2 per cent as the pound's 2 per cent drop limited a fall in the exporter-heavy index.</p>.<p>BP and Royal Dutch Shell were the biggest drags on the index as oil prices fell more than 3 per cent on the latest round of European restrictions.</p>.<p>Shell also took a hit from its move to write down the value of its oil and gas assets by $3.5 billion to $4.5 billion following a string of impairments this year.</p>.<p>British Airways-owner IAG and easyJet fell about 8 per cent, while InterContinental Hotels Group dropped 4 per cent after its European neighbours and other countries cut transport ties due to fears about the new coronavirus strain.</p>.<p>"We are in the middle of a perfect storm of both Covid-19 and Brexit," said Stefan Koopman, senior market economist at Rabobank. "It is catastrophic as the entire island is cutoff from the continent and that has repercussions on the market."</p>.<p>The FTSE 100 has lost 14.3 per cent so far this year and is on course for the worst year since the global financial crisis in 2008-09 as pandemic-driven lockdowns battered the economy and led to mass layoffs.</p>.<p>The domestically focused FTSE 250, considered a barometer for Brexit sentiment, shed 1.9 per cent with no Brexit trade deal in sight and just days to go until a transition period expires at the end of the year.</p>.<p>Pub groups JD Wetherspoon and Mitchells & Butlers were also a drag on the index due to worries about the latest restrictions. </p>