Connect with us


London stocks slid as China growth concerns dent global risk appetite

London stocks slid as China growth concerns dent global risk appetite 1

By Bansari Mayur Kamdar

(Reuters) – UK shares tracked Asian and European markets lower on Monday, as tightening lockdowns in China added to investors’ concerns about a recession amid the Bank of England’s dour economic outlook last week.

The commodity-heavy FTSE 100 index fell 0.7% in early trade, with miners leading losses as metal prices dropped on demand concerns. [MET/L]

Industrial metal miners including Rio Tinto, Glencore and Anglo American fell about 2.5% each.

“The biggest concern that markets have at the moment about UK is that we’re likely to see fewer rate hikes over the course of the next 12-18 months and much slower growth, but I don’t think we’re going to be unique in that,” said Michael Hewson, chief market analyst at CMC Markets, UK.

The FTSE 100 index has outperformed its European peers so far this year but a weakness in mining stocks in the last few weeks is starting to weigh on the commodity-heavy index.


Investors were already rattled after the British central bank sent a stark warning on Thursday that Britain risks a double-whammy of a recession and inflation above 10%.

The pound declined 0.4%, limiting some losses on the export-heavy FTSE 100, compared to the domestically focussed mid-cap index falling 1.7%.

Capital & Counties Properties and Shaftesbury Plc slid 4.3% and 2.9%, respectively, after the real estate firms said they were in advanced talks on a merger that would bring such London tourist destinations as Covent Garden and Soho under one umbrella.

Ideagen Plc jumped 46.1% on agreeing to a takeover by private equity firm Hg Pooled Management in an all-cash deal valuing the British software firm at 1.09 billion pounds ($1.34 billion).

(Reporting by Bansari Mayur Kamdar in Bengaluru; editing by Uttaresh.V and Rashmi Aich)

Editorial & Advertiser disclosure
Our website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
Global Banking and Finance Review Awards Nominations 2022
2022 Awards now open. Click Here to Nominate


Newsletters with Secrets & Analysis. Subscribe Now