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* FTSE 100 drops 1.73%, FTSE 250 down 3.7%
* Rolls Royce, Meggitt fall to bottom of FTSE 100
* easyJet tumbles on grounding its fleet, furloughing
employees
* Banks, consumer staples and industrials drags FTSE 100
(Adds comment, updates share prices)
By Devik Jain and Sruthi Shankar
March 30 (Reuters) - UK shares slipped on Monday as another
wave of stimulus measures failed to calm investors worried by
the possibility of a prolonged coronavirus-led shutdown in
Britain.
The internationally focused FTSE 100 index slipped
1.7%, with shares in aerospace suppliers Rolls-Royce,
Meggitt and Senior plunging between 13% and 15%
after another bearish call from JPMorgan.
The U.S. bank, which assumes a 38% drop in global air
traffic in 2020, cut earnings estimates for the sector, and
expects credit rating firms including the S&P to downgrade
Rolls-Royce to non-investment grade.
Oil majors BP Plc and Royal Dutch Shell Plc
fell as oil prices tumbled on fears about the economic hit from
the pandemic as well as a price war between Russia and Saudi
Arabia.
Global stock markets breathed a bit last week amid a brutal
selloff as policymakers rolled out unprecedented stimulus
measures, but the FTSE 100 is still headed for its worst month
in more than three decades with losses of more than 17%.
Markets were still not inspired even after China's central
bank on Monday unexpectedly cut the reverse repo rate by 20
basis points, the largest in nearly five years.
"I think the markets want to have hope, but the reality is
there is still more pain to come in the short-term," said Louise
Kernohan, investment director for UK Equities at Aberdeen
Standard Investments.
Travel stocks have taken a beating, as the fast-spreading
coronavirus triggered lockdowns globally, forcing airlines,
cruises and travel operators to scramble for cash to survive.
A senior medical officer said on Sunday some lockdown in
Britain could last months and only be gradually lifted, raising
fears of a deep slump in the economy.
The wider travel and leisure index fell 4.4%,
with low-cost airline easyJet sliding 9.1% after
revealing it had grounded its entire fleet and furloughed cabin
crew employees for two months under a government job retention
scheme.
"Within each sector, there will be relative winners and
relative losers. The investors' job now is to choose the ones
that will survive and hopefully will come out stronger after
this - based on liquidity and balance sheet," said Aberdeen's
Kernohan.
The domestically focused midcaps fell 3.8%, led by
declines in Cineworld and Dixons Carphone.
Public sector contractor Kier Group fell 3.6% after
announcing pay cuts for about 6,500 employees, including
executives and board members.
(Reporting by Devik Jain in Bengaluru; Editing by Bernard Orr)
