TUESDAY MARKET CLOSE: FTSE slumps 2.5% on China data miss

There was speculation that the Fed will soon start raising US rates. Picture: AP

The FTSE 100 was hit by a “perfect storm” as weak oil prices sent the drillers tumbling and limp data from China hit the diggers.

With analysts issuing a flurry of speculation that the US Federal Reserve will soon start raising rates, the index posted its worst one-day fall in points term since last October, down 173.63 points at 6,702.84.

Tony Cross, market analyst at Trustnet Direct, said: “Losses are eye-catchingly broad-based as a perfect storm builds – that data from China overnight showed a worryingly sharp dip in factory gate prices – whilst the focus is very much on the US tightening monetary policy sooner rather than later.”

With a recent note from Goldman Sachs speculating that oil is headed for $40 a barrel gaining both exposure and credence, Tullow and BG Group both slumped more than 7 per cent. Tullow Oil was down 24.3p at 321.8p and BG dropped 68p to 851.2p. Heavyweight Royal Dutch Shell was 103.5p lower at 2,037.5p.

Among the miners, Anglo American was 5 per cent lower at 1,081.5p and Antofagasta shed 5.5 per cent to 711p.

Elsewhere, the departure of Prudential’s highly respected boss gave a jolt to the insurer’s share price, leaving it 51.5p lower at 1,612p. The disclosure of Tidjane Thiam’s planned switch to Credit Suisse later this year came as the blue-chip insurer posted a 14 per cent rise in annual operating profits to £3.2 billion.

Supermarket Sainsbury’s was under pressure - off 9.6p to 265.9p - after till-roll figures from Kantar Worldpanel showed its sales fell 0.5 per cent in the 12 weeks to 1 March.

Tesco shares were also down, slipping 5p to 235.3p, even though the figures offered more signs of revival with its strongest performance in 18 months.