MARKET REPORT

THE London markets slumped after new figures suggested the UK is on the path to a recession.

Traders were unnerved after the latest IHS Markit/ CIPS services purchasing managers’ index delivered its worst ever reading, highlighting a dramatic slowdown for the services sector.

Economists said the figures, which came days after a major decline in manufacturing was revealed, point towards a steep contraction in the UK economy.

The FTSE 100 closed 64.72 points lower at 5,415.5 at the end of trading yesterday.

The pound was also weakened by the PMI figures, which were worse than analysts’ expectations, bringing to an end the currency’s recent rebound.

The value of the pound fell 1.2% versus the US dollar at 1.224 and was down 0.6% against the euro at 1.134.

Europe’s largest markets also slumped as traders reacted badly to PMI figures which were largely worse than the UK’s set of statistics.

The German Dax decreased by 0.47%, while the French Cac moved 1.57% lower.

Global markets were also knocked by the latest set of disappointing US labour figures, although analysts said traders once again took the data in their stride.

The Dow Jones slid lower at start of trading as fears over the economic impact of the lockdown were exacerbated by Friday’s job figures.

UK supermarket stocks pushed higher as traders continued to bank on high demand for essential items and online deliveries.

The price of oil surged again on the speculation there will be a large production cut in the near future, driven by reports that President Donald Trump is meeting leaders in the US oil industry.

The price of a barrel of Brent crude oil increased 11.69% to 33.06 US dollars.

The biggest risers on the FTSE 100 were up 464p at 7,200p, up 101p at 2,279p, up 8.6p at 213.4p, and

up 232p at 6,372p.

The biggest fallers of the day were down 17.85p at 159.7p, down 26.7p at 251.6p,

down 47.2p at 477.8p, and down 237p at 2,471p.