Commodity stocks drag FTSE 100 lower as slowdown concerns bite

By Devik Jain

-London’s FTSE 100 slid 2% on Monday, dragged down by commodity and monetary shares, as issues over world financial slowdown clouded traders’ threat urge for food forward of a barrage of company earnings experiences due this week.

The blue-chip index, which fell 2% to the touch an over five-week low, is about for its worst day since March 4.

The domestically centered midcap FTSE 250 index declined 1.7% to hit its lowest degree since March 16.

Oil majors BP and Shell had been down 4.7% and three.8%, respectively, whereas the economic mining sub-index misplaced 6.1%, monitoring decrease crude and steel costs as prospects of extended COVID-19 lockdowns in China stoked demand fears. [O/R][MET/L]

Broadly, Asian shares had their worst session in 1-1/2 months as issues about fast and aggressive U.S. charge hikes and slowing progress momentum rattled sentiment. [GLOB/MKTS]

Banks dropped 1.8%, with Asia-focused lenders HSBC Holdings and Commonplace Chartered slipping forward of their outcomes due this week.

“Having spent many of the previous couple of weeks making an attempt to place to 1 facet issues about occasions in japanese Europe, a slowdown in China, and the growing dangers of what inflation may do to firm earnings, in addition to shopper incomes, the ultimate straw seems to be a priority concerning the prospect of a coverage mistake by central banks, and a doable recession by the tip of the 12 months,” Michael Hewson, chief market analyst at CMC Markets UK stated in a notice.

Financial institution of England Governor Andrew Bailey stated on Friday the central financial institution may cope with the quick rise in inflation with out damaging the economic system, however the path was a slender one.

McColl’s Retail Group slumped 55.5% because the British comfort retailer chain forecast tepid annual core revenue after a weaker-than-expected Easter efficiency, dented by decrease shopper spending and provide chain disruptions.

Bucking the sombre temper, shares of Polymetal climbed 5.1% after the Russian gold and silver producer stated its first-quarter income grew by 4% year-on-year to $616 million attributable to greater gold costs.