U.K. stocks fell sharply on Thursday amid a global sell-off on concerns that rising inflationary expectations could impact the economic recovery from COVID-19.
The benchmark FTSE 100 dropped 145 points, or over 2 percent, to 6,860 after climbing 0.8 percent on Wednesday.
BP Plc fell 3.4 percent and Royal Dutch Shell lost 3.8 percent as oil snapped a four-day gain on news the largest U.S. gasoline pipeline has resumed service.
Weak iron ore prices weighed on the mining sector, with Anglo American, BHP, Antofagasta, Rio Tinto and Glencore falling 3-5 percent.
Insurance company Prudential slumped 5 percent after announcing business and Jackson demerger update in advance of its Annual General Meeting.
Burberry shares plummeted 9 percent as the luxury brand reported a 10 percent drop in sales for the year to end-March.
U.K.’s biggest broadband and mobile provider, BT Group, fell 4.4 percent after reporting a fall in revenue and profit for the full year.
In economic releases, U.K. house prices climbed notably in April as the increase in demand increasingly outstripped supply, monthly survey results from the Royal Institution of Chartered Surveyors, or RICS, showed.
The house price balance rose to 75 percent in April from 62 percent in March. All regions showed sharp pick-up in house price inflation.
A headline net balance of +44 percent of contributors cited a pick-up in buyer enquiries in April, which was virtually unchanged from a reading of +43 percent a month ago.
Market Analysis
FTSE 100 Slides As Inflation Fears Rise
2021-05-13 09:36:26
