Ftse 100 Dragged Down By Mining And Energy Stocks

last updated on

Ftse 100 Dragged Down By Mining And Energy Stocks

FTSE 100 Dragged Down By Mining And Energy Stocks

FTSE 100 is a major export-oriented stock market index of the United Kingdom and thus can help us understand the current situation of UK equities. Since the start of this week, the FTSE 100 has been under pressure due to the poor performance of mining and energy stocks.

Furthermore, China has restated that it will continue its zero-COVID policy, which has further dampened the demand for commodities. As a result of these negative events, FTSE 100 index, which tracks blue chip stocks, fell by 0.5% during the Monday trading session.

As for the FTSE 250 (mid-cap stocks index), it only decreased by 0.1%, which tells us that it was less affected by the fundamental outlook.

The main reason for the pressure on the FTSE 100 is mainly due to the mining and energy stocks, which are a part of the index. Energy stocks, in particular, slid by 1.1%, while the mining stocks were down by 0.2%. Furthermore, the comments from China have sent the commodities lower once again, which is also weighing heavily on the FTSE 100.

The British House Prices, which tells us about the health of the real estate sector, also fell during October. According to experts, the BHP fell at such a fast rate that it was only seen last time during February 2021. And since the construction industry is also closely related, it also slid by 0.4%.

GSK Plc, which is a leading pharmaceutical company in the UK, also saw its shares drop by 2% after reports that its latest cancer drug has failed the final stage studies.

Similarly, the British fashion retailer 'Joules Group' saw a decline of 34.4% after it disclosed that it is in discussions for a cornerstone investment.

Overall, the situation of UK equities is not looking good, and if we look ahead, further economic trouble is ahead all over the world, including the UK. And since the FTSE 100 contains export-oriented stocks, it will also suffer from a decreased global demand.

Trending Stories