Footsie slumps amid worries on rates
A WAVE of selling swept through European markets today as risk-averse traders took no chances in the face of interest rate and geopolitical worries.
Having flirted with record territory only last week, the FTSE 100 index slumped 1.5% or 122.61 points to stand near to a one-month low at 7842.92.
The performance was mirrored in Paris and Frankfurt following last night’s slide for Wall Street technology stocks on signs that interest rates may not fall until December.
Middle East tensions and a mixed US earning season also impacted sentiment, while China’s robust first quarter GDP figure of 5.3% today kept Brent Crude near $90 a barrel in a further sign of inflation pressure.
There was no hiding place for London investors amid a broad-based reverse that left Anglo American down 78.5p to 2090.5p and Ladbrokes owner
Entain off 22.7p to 794.5p.
The mood towards UK-focused stocks wasn’t helped by official figures showing a surprise jump in the unemployment rate to 4.2% alongside continued wage strength.
Mortgage lender Lloyds Banking Group was among the hardest hit after a decline of 3% or 1.4p to 49.8p, while Marks & Spencer dropped 7.7p to 246.5p.
Other big FTSE 100 fallers included
Scottish Mortgage Investment Trust, which lost 3% or 29.6p to 836.6p after the value of its holding in Tesla slid last night.
The FTSE 250 index gave up 1.5% or 295.78 points to 19,403.11, with Auction Technology Group down 13% or 82p to 541p after an otherwise robust trading update was blotted by tougher market conditions for US-based Proxibid.
Recruitment firm Hays weakened 4.1p to 88.4p as its third quarter update reflected today’s jobs report with a 16% drop in UK like-for-like net fees. Its biggest division of Germany fell 13% in a continuation of recent trends.
Other mid-cap fallers included defence firm Qinetiq and Royal Mail owner IDS, off 21p to 336.8p and 8p to 219.2p respectively.
Miner Centamin was among a handful of risers, up 2.7p to 129p as the gold price stayed near a record at $2371 an ounce.