FTSE 100 falls deep in the red as global sell weighs in Business News

London’s FTSE 100 fell deep into the red on Thursday, hitting less than 7,000 at the day’s low, as sales strengthened in most major global indices as fears of an economic recovery were in focus death as Covid cases increase.

The UK blue chip index rallied slightly from the day’s lows of 6,981 and ended at 7,030, around 1.7% or 120 points lower. Mining and financial stocks were the hardest hit, with the mid-level capital group falling more than 5%.

Bank stocks like Lloyds, Barclays and NatWest also remain weak amid falling global yields, particularly in the United States. Anglo American mining company fell more than 4 percent.

The domestically-focused FTSE 250 fell 1.4% or 318 points as investors fear an increase in Covid cases in the UK has scared investors.

Indices in the rest of Europe also remained lower on Thursday, as concerns about the economic recovery weighed in, recording their worst session in two months. The pan-European STOXX 600 index fell 1.8 percent, while the German DAX fell 1.7 percent and France’s CAC fell more than 2 percent.

Across the pond, US stocks fell from record highs, reflecting falling bond yields and similar concerns about the global economic recovery. The S&P 500 fell 0.9%, with tech, financial and industrial companies taking some of the biggest losses. The Dow Jones Industrial Average fell 0.7%. The tech-rich Nasdaq composite fell 0.7%.

Asia-Pacific stocks also reflected fears of an overnight shutdown among their global peers on Friday morning, as the release of Chinese inflation data continues to worry investors, as indices are trading deep in the red. Japan’s Nikkei was down more than 500 points around 1 p.m. local time, while the Shanghai Composite traded down 0.7%.

The Hong Kong Hang Seng has shown some recovery after falling sharply in early morning trading and manages to stay in the green with gains of around 0.6% by noon.

Indian indices also opened lower as global peers continue to trade under pressure. Sensex opened 250 points lower while Nifty fell below the 15,700 level. Banking and financial stocks were the biggest drag.