FTSE 100 Live 09 May: Economic growth worries fuelled by China data, Bitcoin price slides

Miners send FTSE 100 lower, Rightmove off 5%

Mining stocks and cryptocurrencies were among the casualties today as softer China trade figures ensured no let up in the recent flight from risk.

China’s latest economic data heightened fears over its zero-Covid lockdown policies after factory shutdowns and port disruption contributed to exports growth slowing to 3.9% from the 14.7% increase in March.

Commodity prices weakened as a result, causing 4% falls for iron ore-exposed shares in Anglo American and Rio Tinto and Chilean copper miner Antofagasta.

Their performances meant the FTSE 100 lost 0.9% or 67.25 points to 7320.69, with tech companies again in the firing line after last week’s US interest rate rise worries.

There was also no respite for holders of cryptocurrencies after the Bitcoin price fell to a three-month low at less than $34,000.

In London trading, Rightmove shares slumped by 6% to their lowest since June 2020 after the property portal announced that chief executive Peter Brooks-Johnson is to step down in 2023 after 16 years with the company and five as its boss.

Despite reassurance that trading has been as expected, the leadership uncertainty weakened the FTSE 100-listed shares by 29.6p to 529.2p. Other growth-focused stocks Entain and Scottish Mortgage Investment Trust were down by around 5%.

Investors took shelter in food retail, tobacco and utility stocks as shares in Sainsbury’s rose 1%, followed by British American Tobacco and National Grid.

The selling pressure was greater in the FTSE 250 index, where Aston Martin Lagonda slumped 7% on fears over China demand and Baillie Gifford’s US Growth Trust fell 9%. Ferrexpo, the Ukraine-based iron ore pellet producer, also tumbled 9% or 14.3p to 137.9p.

Only 16 stocks were in positive territory as the FTSE 250 weakened more than 2%, or 394.63 points to 19,425.04. They included MoD technology supplier Qinetiq with a gain of 5%, while cyber security specialist NCC edged up 0.4p to 185.4p after forecasting increased revenues momentum into the new financial year.

It also announced Mike Maddison, EY’s head of cyber security, will replace Adam Palser as chief executive. Analysts at Jefferies welcomed the “neat CEO changeover” with a price target of 300p.

Source link

Leave a Reply

Your email address will not be published.