MARKET REPORT: Global markets tumble on health of economy


Global markets fell amid growing fears about the health of the global economy.

As the mini-budget sent ripples across town, the FTSE 100 fell 1.97%, or 140.92 points, to 7018.60 and the FTSE 250 fell 1.96%, or 359 points, at 17,972.69. Germany’s main benchmark fell 1.97% while France’s CAC fell 2.28%.

On Wall Street, the Dow Jones Industrial Average, S&P 500 and tech-heavy Nasdaq all fell. Markets continue to be rattled by the prospect of aggressive U.S. interest rate hikes as central banks rush to rein in runaway inflation.

On the slide: As the mini-budget rippled across town, the FTSE 100 fell 1.97%, or 140.92 points, to 7,018.60.

In London, as the price of Brent crude oil hovered above $86 a barrel, Shell fell 5.3%, or 124p, to 2214.5p, while BP fell 5.5%, or 25.15p, to 433.1p, and Harbor Energy sank 6.1p. cent, or 29.5p, to 452.6p.

Despite this, broker City Jefferies issued positive ratings. Shell’s target price was raised 2700p to 3300p while BP’s was raised 70p to 490p. Mining stocks took a hit as metal prices reversed, dropping Fresnillo 5.6%, or 41.2p, to 690.2p and Antofagasta 5.9%, or 65.5p, to 1042, 5p.

There was more good news for AstraZeneca just a day after a drug to treat ovarian cancer was approved by Chinese regulators.

The pharmaceutical giant said ultomiris has been approved in Europe to treat adults with myasthenia gravis, a rare condition that prevents muscles from working properly. Despite this, it fell 1.9%, or 82p, to 10,016p.

Some real estate developers have been affected by a downgrading of a broker’s rating and the prospect of higher interest rates. Jefferies analysts cut Landsec’s target price to 641p from 672p, pushing it down 5.9%, or 33.8p, to 535.8p.

British Land suffered the same fate, with its target price reduced from 459p to 420p. It fell 4.4%, or 16.8p, to 361.9p.

Prudential fared better after JP Morgan raised the insurer’s target price to 1450p from 1380p, saying new boss Anil Wadhwani could offer a chance to broaden his financial and strategic goals. It rose 0.7%, or 6.4p, to 927.8p.

Burberry also announced board changes after its chief operating and finance officer announced she would step down next April. Julie Brown, who has worked for the luxury fashion brand for six years, is leaving the industry. It slipped 4.6%, or 79p, to 1639p.

Smiths Group beat market expectations to report a 3.8% rise in revenue to £2.56bn for the year to the end of July, and climbed 1.3%, or 19 .5p, at 1490p.

Moonpig was among the victims of broker downgrades after Citigroup and Jefferies slashed the online greeting card company’s target price, sending it plunging 8.1%, or 14.8p, ​​to 168.9p.

Similarly, owner Tritax Big Box fell 5.8%, or 8.6p, to 139.4p after Barclays cut the target price by 200p to 155p.

Royal Mail has taken a further hit on the back of its dispute with unions. Liberum analyst Gerald Khoo issued a ‘sell’ note on the stock, saying his decision to propose negotiations be taken to Acas, the dispute resolution service, is likely to infuriate investors. unions. It fell 4%, or 8.15p, to 196.45p.

The outgoing boss of the magazine publisher behind Country Life and Four Four Two has scooped up nearly £20,000 worth of shares just days after announcing she will retire within the next 18 months. Zillah Byng-Thorne bought 1,276 shares of Future for 1,435 pence each, as it fell 1.2%, or 16 pence, to 1,365 pence.

Longboat Energy rose 1.2%, or 0.5p, to 43p after the North Sea oil group said it may have made a major gas find in Norway. Stifel analysts said this could prove to be Longboat’s most impressive result to date.

Some links in this article may be affiliate links. If you click on it, we may earn a small commission. This helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow any business relationship to affect our editorial independence.

Previous Europe is foolishly spending money to help companies in the worsening energy crisis
Next Company Highlights: Dow's Low 2022, UK Tax Cuts