Stocks suffer on global growth fears
Stocks have fallen this morning on a hangover from weak US employment data on Friday, and falls in Asian markets overnight.
US non-farm payroll data showing just 54,000 new jobs were created in May shocked the markets, leaving the Nasdaq 1.5 per cent lower.
In Asia, the Nikkei fell to an 11-week closing low today as investors reacted to the US data and speculation that power utility Tepco could be nationalised to manage its nuclear crisis losses.
Tepco’s share price fell 25 per cent on the press comments, made by the Tokyo stock exchange’s head.
In London, fears that the global economic recovery is faltering have hit investor sentiment.
Banks lead the fallers, with government-backed Lloyds down 1.5 per cent to its lowest level in more than a year as details of the sale of 600 of its branches were outlined.
Barclays has fallen 1.4 per cent and Royal Bank of Scotland is down 0.9 per cent.
Travel companies are also suffering, with cruise operator Carnival off by 1.4 per cent and British Airways owner International Consolidated Airlines Group down 1.25 per cent.
Insurer Aviva has lost 1.4 per cent, extending recent weakness, as it undergoes changes in its senior management.
Topping the risers is commodities giant Glencore, which has recovered 2.2 per cent to 516p in high volume as Deutsche Bank launched its coverage of the stock with a ‘buy’ rating.
Miner Antofagasta is providing some support to the FTSE, gaining 0.6 per cent, while oilfield services suppliers Petrofac and John Wood Group have each risen 0.7 per cent.
Also in demand are engineering group IMI, up 1.7 per cent, and wealth manager Hargreaves Lansdown, up one per cent.
Standard Chartered Bank is among the most-traded stocks this morning. It is bucking the downward trend on banks to gain 0.5 per cent.
This week brings little economic data likely to upset markets, but UK and European authorities will report interest rate decisions on Thursday.