London’s FTSE 100 index closed down 1.86% at 7,148.5 with the FTSE 250 down 2.99% at 18,943.7: it was the FTSE 100’s largest one-day decline in more than a month, topping out a four-day streak where the index was down for four consecutive days, driven largely by fears over the global economy.
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Losses in the mining, financial services and travel sectors helped to propel shares downwards, amid a global sell-off.
British house prices rose faster in August than in July, although analysts fear the market will cool in coming months as the impact of surging energy prices hits household budgets and the Bank of England raises interest rates still further. Lender Nationwide said the average house price rose 0.8% in August, and is 10% higher year-on-year.
Robert Gardner, Nationwide’s chief economist said, “There are signs that the housing market is losing some momentum, with surveyors reporting fewer new buyer enquiries in recent months and the number of mortgage approvals for house purchases falling below pre-pandemic levels.”
Mining stocks fell yesterday thanks to news about the Chinese economy which sparked fears of a drop in demand for commodities: Covid-19 lockdowns have been reintroduced in several large cities including tech hub Shenzhen.
In the wake of the news, stock such as Glencore (GB:0IVW) plunged by 6.6%.
British business news today
Sterling posts worst monthly fall since 2016 Brexit referendum (FT)
Wall Street bear sees warnings of 1929-style crash (The Times)
Blue chips turn red as recession fears mount (Daily Mail)
