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

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

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.”

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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.

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