US markets pummelled as storm clouds gather
US stock markets took another beating last night as the global sell-off accelerated.
After the FTSE 100 closed down 2.3pc, or 171.36 points at 7216.58 in London, the S&P 500 index of major American firms slid 3.2pc – falling below 4,000 points for the first time in more than a year.
The tech-heavy Nasdaq tumbled 4pc, and the Dow Jones slid 2pc.
Shares in technology companies were hit once again with electric car-maker Tesla down 9pc, Facebook owner Meta off 3.7pc and Apple 3.3pc lower.
The downturn came after several of the world’s key central banks hiked interest rates in recent weeks, in an attempt to fight soaring inflation.
But if they bump up rates too fast, they risk depressing the Covid recovery.
This is a worry for high-growth companies such as Meta and Tesla.
The latest market slide came after data showed Chinese exports grew at the slowest rate in two years – up just 3.9pc in April – as the world’s second largest economy was battered by Covid lockdowns and weak global demand.
Victoria Scholar, head of investment at online service Interactive Investor, said Beijing’s ‘draconian’ strategy to contain a growing Covid-19 outbreak was putting supply chains ‘under pressure’ as the measures forced factories to close and clogged up transport hubs.
In London, concerns that a slowdown in China will hit demand for raw materials sent shares in Glencore down 6pc, or 29.05p, to 458.55p.
Rio Tinto dropped 4.6pc, or 252p, to 5188p, Anglo American slumped 5.4pc, or 188.5p, to 3300p, Antofagasta fell 6.5pc, or 95p, to 1362p and BHP shed 4.4pc, or 118p, to 2539.5p.
Oil prices also took a hit with Brent crude tumblin 7pc to $105 a barrel, although the prospect of a European ban on Russian oil continued to provide a bedrock of support.
BP dipped 5.1pc, or 21.85p, to 404.8p as crude prices dropped and rival Shell slipped 3.2pc, or 74.5p, to 2225p.
Housebuilders were on the slide after analysts at Deutsche Bank slashed their target prices across the sector as they counted the cost of fire safety works to repair dangerous cladding.
Barratt Developments fell 2.3pc, or 11p, to 459.1p, Taylor Wimpey lost 2.6pc, or 3.2p, to 120.25p, Vistry dropped 2.9pc, or 23p, to 760.5p, Redrow shed 2.6pc, or 13.5p, to 500p, Bellway slumped 2.5pc, or 58p, to 2232p and Crest Nicholson slipped 2.7pc, or 6.4p, to 233p.
FTSE250 insurer Beazley bounced 32.7pc, or 11.6p, to 441.8p after analysts at both Jefferies and Berenberg hiked their target prices on the stock.
Irish conglomerate NCC Group rose 3.7pc, or 6.8p, to 191.8p after unveiling its next chief executive.
Mike Maddison, head of cybersecurity for Europe, the Middle East and Africa at accountancy group EY, will take over the top job at the start of August replacing outgoing boss Adam Palser.
The group also issued a brief trading update, predicting that revenues in the second half will be ‘substantially higher’ than both the first half and year-on-year.
Victrex dropped 6.8pc, or 123p, to 1675p following a disappointing set of half-year results.
The polymer maker reported a pre-tax profit of £43.6m for the six months to the end of March, down 6pc year-on-year despite a 6pc rise in revenues to £160.1m.
The profit dip was blamed on costs relating to the firm’s implementation of a new software system.
The FTSE 250, meanwhile, fell 2.6pc, or 512.95 points, to 19306.72.