London’s FTSE 100 fell sharply on Friday to its lowest levels in nearly a month, as financial and commodity-related stocks fell, following the selloff triggered by the US Federal Reserve’s decision this week.
The blue chip index fell 136 points or 1.9% to 7,017, well below pre-pandemic levels it reached this week. The domestically focused FTSE 250 also crashed by almost 1%.
Meanwhile, data from the UK also showed retail sales slumped in May, following restaurants reopening as pandemic restrictions were lifted.
In the forex market, the US dollar hit a 10-week high, while the pound fell to $ 1.38, its lowest level since early May.
The companies leading the losses on the FTSE 100 were engineering firm Melrose and mining giant Anglo American, which each lost 5% as commodity prices fell.
UK investors are also awaiting the Bank of England meeting next week where policymakers are expected to react to inflation levels above 2%, above the BoE’s target. The US Fed’s hawkish turn last week worried investors.
Across the Atlantic, US stocks also fell sharply following comments from Fed official James Bullard about the earlier-than-expected interest rate hike.
The Dow Jones Industrial Average and the S&P 500 posted their worst weekly performance in weeks, both falling around 1.5% on Friday. The tech-rich Nasdaq Composite also fell nearly 1%.
Asian stocks fell on Monday following their global peers, with Japan’s Nikkei 225 collapsing more than 1,000 points or 3.5% at noon. Hong Kong’s Hang Seng Index fell 1.4% and mainland Chinese stocks fell in the first half of trading as the Shanghai composite fell 0.2%.
Indian indices also opened lower, reflecting global markets. Sensex opened 487 points lower, recouping a few losses after the opening minutes. The NSE Nifty is less than 15,500.
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Source: www.independent.co.uk
This notice was published: 2021-06-21 05:25:41
