FTSE 100 Declines On US Recession Worries

U.K. stocks fell sharply on Monday as discouraging U.S. labor market data sparked worries of a recession.

Investors ignored the results of a survey showing that activity in the United Kingdom’s private sector increased for the third consecutive month in July, albeit at a moderate pace.

The benchmark FTSE 100 dropped 178 points, or 2.2 percent, to 7,996 after declining 1.3 percent on Friday.

Selling was seen across the board, with miners Anglo American, Antofagasta and Glencore falling 2-4 percent.

Energy giant BP Plc tumbled 3.3 percent and Shell lost 4 percent as crude prices hovered near eight-month lows despite heightened Middle East tensions.

Engineering firm Senior plummeted 5.5 percent despite posting a 10 percent rise in first-half profit.

Ship broker Clarkson slumped 8.5 percent after reporting lower sales and profit in the first half of the year.