Share prices take a hit after stark warning on UK economic growth

London’s top shares finished the day in negative territory after experts warned UK economic growth could grind to a halt next year.

Trading sentiment took a downturn after the Organisation for Economic Co-operation and Development (OECD) said growth will slow more than expected over the rest of this year before flatlining in 2023.

Other European markets also slid after the body warned global growth would stall further following the impact of Russia’s invasion of Ukraine.

The FTSE 100 ended the day down 5.93 points, or 0.08%, at 7,593, after recovering some ground later in the day.

The German Dax decreased by 0.8% by the end of the session while the French Cac fell 0.94%.

Michael Hewson, chief market analyst at CMC Markets UK, said: “It’s been another day of weakness for markets in Europe after the OECD followed up Tuesday’s World Bank global growth downgrade with one of its own.”

US stocks were also dented by the gloomy economic outlook, stepping backwards after two previous sessions of gains.

Meanwhile, sterling was treading water after the OECD also raised concerns over elevated inflation levels in the UK and worker shortages.

The pound was flat against the dollar at $1.255 and dropped 0.06% against the euro to 1.168.

In company news, manufacturing firm Melrose Industries was one of the top performers after it unveiled proposals to launch a £500 million share buyback programme.

The announcement came two days after it revealed plans to sell its Ergotron business to private equity firm Sterling Group for £520 million.

Shares increased by 15.6p to 157.7p as a result.

The price of oil moved towards the highs seen last week as comments from the UAE oil minister that prices are not near their peak helped drive another increase. Brent crude increased by 1.68% to $122.6 per barrel when the London markets closed.

“It’s been another day of weakness for markets in Europe