London stocks were still firmly in the red by midday on Thursday after minutes from the latest Federal Reserve meeting signalled that tapering was on the cards this year, with miners pacing the decline.
The FTSE 100 was down 1.8% at 7,039.31.
Richard Hunter, head of markets at Interactive Investor, said: “Markets took another glancing blow as the Federal Reserve minutes revealed that tapering is edging ever nearer.
“While no date has yet been confirmed, there is an increasing split within its members and it appears increasingly likely that the taper will begin before the end of the year. Alongside some mixed retailer results, the unrest in Afghanistan and an apparently weakening Chinese economy, this has been a week to test the mettle of investors.
“US investors have an increasing list of concerns to contend with, as the Delta variant persists in parts of the country, unemployment still remains above pre-pandemic levels and the spectre of inflation looms.”
In equity markets, miners were the biggest drag as commodity prices fell, with Anglo American, Antofagasta, Rio and Glencore all weaker.
Anglo American was also hit by the fact that it went ex-dividend, along with Abrdn, M&G, Phoenix Group and Dixons, among others.
Telecommunications infrastructure company Helios Towers slid as it said revenue rose in the first half of the year, but operating profit fell, partly due to increased deal costs.
Gambling operator Rank Group was also down as it reported a £93m operating loss as Covid restrictions closed its venues. The company said annual net gaming revenue almost halved to £329.6m, from £629.7m. Losses compared with a profits of £21.5m a year ago the owner of Mecca bingo halls said.
Ultra Electronics lost ground after UK Business Secretary Kwasi Kwarteng ordered an inquiry into the proposed takeover of the company by Cobham.
On the upside, OSB pushed higher after it said pre-tax profits had more than doubled in the six months ended 30 June.
Landscape products company Marshalls rallied after it lifted its expectations for 2021 and 2022 as it reported strong growth in the first half amid supportive market conditions.
Market Movers
FTSE 100 (UKX) 7,039.31 -1.81%
FTSE 250 (MCX) 23,632.75 -0.85%
techMARK (TASX) 4,768.49 -1.03%
FTSE 100 – Risers
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,729.00p 1.34%
Polymetal International (POLY) 1,498.50p 0.50%
Ocado Group (OCDO) 1,889.00p 0.45%
National Grid (NG.) 971.00p 0.23%
Bunzl (BNZL) 2,663.00p 0.15%
Avast (AVST) 593.60p 0.03%
Weir Group (WEIR) 1,634.00p -0.03%
Smith & Nephew (SN.) 1,393.50p -0.14%
SSE (SSE) 1,634.00p -0.34%
Rightmove (RMV) 704.40p -0.37%
FTSE 100 – Fallers
Anglo American (AAL) 2,900.50p -10.35%
Phoenix Group Holdings (PHNX) 634.60p -4.94%
M&G (MNG) 211.40p -4.60%
Imperial Brands (IMB) 1,518.00p -4.47%
Antofagasta (ANTO) 1,407.00p -4.32%
Abrdn (ABDN) 263.10p -4.29%
BP (BP.) 289.80p -4.25%
Burberry Group (BRBY) 1,865.50p -3.89%
Royal Dutch Shell ‘B’ (RDSB) 1,381.40p -3.49%
Royal Dutch Shell ‘A’ (RDSA) 1,394.20p -3.27%
FTSE 250 – Risers
OSB Group (OSB) 515.50p 4.99%
Marshalls (MSLH) 779.00p 2.97%
Savills (SVS) 1,411.00p 1.66%
Genuit Group (GEN) 687.00p 1.63%
Indivior (INDV) 188.90p 1.56%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,729.00p 1.34%
Mitie Group (MTO) 71.80p 1.27%
Domino’s Pizza Group (DOM) 413.00p 0.93%
SSP Group (SSPG) 265.70p 0.91%
Just Group (JUST) 94.05p 0.86%
FTSE 250 – Fallers
Harbour Energy (HBR) 323.00p -4.78%
Helios Towers (HTWS) 162.20p -4.70%
Petropavlovsk (POG) 18.89p -3.62%
Rotork (ROR) 326.80p -3.54%
CMC Markets (CMCX) 407.50p -3.44%
Liontrust Asset Management (LIO) 2,205.00p -3.08%
National Express Group (NEX) 261.60p -3.04%
BlackRock World Mining Trust (BRWM) 576.00p -3.03%
Carnival (CCL) 1,447.40p -2.83%
Trustpilot Group (TRST) 384.40p -2.73%
