London’s miners have had another weak day, but this time did not drag the FTSE 100 below the performance of its global peers during a rough day on international markets.
The FTSE 100 closed down sharply, and was likely saved from an even more devastating drop by a rapidly falling pound. It ended at 7,521, 1.4pc lower.
Several miners have reported weaker-than-expected results this week, and earnings are being hit by increased costs. But London was at the mercy of global headwinds as its banks, including HSBC and Barclays were caught up in a sell-off caused by comments from the US Federal Reserve.
CMC Markets analyst Michael Hewson said: “It’s been a disappointing end to the week for markets in Europe, after Fed chairman Jay Powell signaled that the Federal Reserve could go much harder, and a lot quicker when the central bank pulls the trigger on the first of what might be several 50 basis points rate hikes, starting next month.
“Financials appear to be taking the biggest hit, after a narrowing of yield differentials, prompted concern about the prospect of a policy mistake by central banks, and a possible recession by the end of the year.”