FTSE 100 dragged lower by miners

A bruising session on global stock markets left London’s investors with a headache yesterday as a drop was led by gambling companies and miners.

The FTSE 100 ended the day down 2.3%, a fall of 171.36 points to 7,216.58, after a rough session of trading as US and European shares traded down partly in anticipation of new inflation figures from several countries.

Danni Hewson, an analyst at AJ Bell, said: “Talk of recession is rife as markets really begin to price in a series of interest rate rises as central banks remain under pressure to help people out of the costof-living crisis they’ve found themselves slap bang in the middle of.”

CMC Markets analyst Michael Hewson said that the natural resources sector had been badly hit by new trade data from China which showed a collapse in imports to the country.

“The stubborn pursuit by Chinese authorities of a zeroCovid policy is raising concerns that it will have a chilling effect on the Chinese economy in the months ahead, and with Beijing and Shanghai tightening curbs on residents of those cities, we appear to be seeing a realisation that supply chain issues may still have some way to go as far as downside risk is concerned, with dire consequences for growth prospects,” he said.

Miners Antofagasta, Glencore and Anglo American were among the worst-hit stocks on a poor day for the FTSE.

In Europe the German Dax closed down 2.2% while Paris’s Cac 40 dropped 2.4%. Their Wall Street cousin the S&P 500 was down 2.8% around market close in Europe while the Dow Jones lost 1.6%.

On currency markets the pound would buy 1.2323 dollars, a rise of 0.14%, or 1.1686 euros, down 0.03%.