Stocks slide as Jpmorgan’s grim prognosis adds to G20’s warning

GLOOMY growth warnings from G20 finance chiefs sent global stocks sliding back into the red as investors succumbed to trade war woes after racking up three weeks of gains.

Edgy markets were put under pressure by G20 countries arguing that growth had become “less synchronised recently” while risks had been increased by “heightened trade and geopolitical tensions” and “rising financial vulnerabilities”.

Meanwhile, Jpmorgan gave the UK market a grim prognosis, declaring that “there is no blue-sky scenario” for London-listed equities. Delivering an “underweight” rating to the whole UK market, the Wall Street bank warned that a decline in oil prices would hit London stocks hard and Brexit turmoil could drag down both the pound and stocks simultaneously.

With Donald Trump’s all-caps Twitter attack on Iran highlighting the geopolitical risk causing tremors in the oil market, the FTSE 100 pulled back 23 points to 7,655.79.

Elsewhere,

Glaxosmithkline inched up 14.8p to £15.65 despite City analysts pouring cold water on reported discussions to break up Britain’s largest drugmaker. UBS told clients that spinning off the consumer healthcare division could impact its dividend cover while Liberum argued that management’s focus should be on its research and development pipeline rather than shaking up the company’s structure.

Plastics packaging company RPC rallied 13.6p to 778p after its top shareholder, Standard Life Aberdeen, warned in The Sunday Telegraph of possible bid interest from US rival Berry Global and private equity firms following its recent share price slump. Troubled outsourcer

Capita nosedived 4.1p to 160.9p after the Ministry of Defence confirmed that it had suspended a hotlycontested contract to run the military’s fire and rescue services following a legal challenge from rival Segro.

The Sunday Telegraph reporting that estate agent

Countrywide is lining up a £100m cashcall weakened it 1.1p to 48.9p. The rights issue to slash debt is expected to be delayed beyond its interim results this week, reports claimed.

Investment firm Prime Opportunities pulling out of the race to snap up IWG knocked the £2.7bn office space provider 2.8p to 298.8p. Airline shares endured a turbulent ride after Ryanair’s profits decline spooked investors. Arch-rival easyjet tumbled 27p to £15.88 while British Airways owner IAG dipped 10.6p to 676.6p.

Petra Diamonds lost some of its shine after cutting production forecasts, weakening its shares 5.3p to 44.7p, a three-year low.