London open: Stocks slump amid Fed taper worries; miners under the cosh

London stocks fell sharply in early trade on Thursday after minutes from the latest Federal Reserve meeting signalled that tapering was on the cards this year, with miners pacing the decline

At 0855 BST, the FTSE 100 was down 1.8% at 7,043.12.

Richard Hunter, head of markets at Interactive Investor, said: "Markets took another glancing blow as the Federal Reserve minutes revealed that tapering is edging ever nearer.

"While no date has yet been confirmed, there is an increasing split within its members and it appears increasingly likely that the taper will begin before the end of the year. Alongside some mixed retailer results, the unrest in Afghanistan and an apparently weakening Chinese economy, this has been a week to test the mettle of investors.

"US investors have an increasing list of concerns to contend with, as the Delta variant persists in parts of the country, unemployment still remains above pre-pandemic levels and the spectre of inflation looms."

In equity markets, miners were the biggest drag as commodity prices fell, with Anglo American, Antofagasta, Rio and Glencore all weaker.

Anglo American was also hit by the fact that it went ex-dividend, along with Abrdn, M&G, Phoenix Group and Dixons, among others.

Telecommunications infrastructure company Helios Towers slid as it said revenue rose in the first half of the year, but operating profit fell, partly due to increased deal costs.

Gambling operator Rank Group was also in the red as it reported a £93m operating loss as Covid restrictions closed its venues. The company said annual net gaming revenue almost halved to £329.6m, from £629.7m. Losses compared with a profits of £21.5m a year ago, the owner of Mecca bingo halls said.

On the upside, landscape products company Marshalls rallied after it lifted its expectations for 2021 and 2022 as it reported strong growth in the first half amid supportive market conditions.

Market Movers

FTSE 100 (UKX) 7,043.12 -1.76%
FTSE 250 (MCX) 23,570.53 -1.12%
techMARK (TASX) 4,762.16 -1.16%

FTSE 100 - Risers

Weir Group (WEIR) 1,650.00p 0.95%
Ocado Group (OCDO) 1,893.50p 0.69%
National Grid (NG.) 973.80p 0.52%
Intertek Group (ITRK) 5,258.00p 0.31%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,658.00p 0.27%
Bunzl (BNZL) 2,663.00p 0.15%
United Utilities Group (UU.) 1,075.00p 0.14%
Avast (AVST) 593.60p 0.03%
Rentokil Initial (RTO) 572.40p -0.03%
Severn Trent (SVT) 2,861.00p -0.17%

FTSE 100 - Fallers

Anglo American (AAL) 2,895.50p -10.51%
Antofagasta (ANTO) 1,400.00p -4.79%
BP (BP.) 289.70p -4.28%
M&G (MNG) 212.20p -4.24%
Abrdn (ABDN) 263.50p -4.15%
Phoenix Group Holdings (PHNX) 642.80p -3.71%
Burberry Group (BRBY) 1,870.00p -3.66%
Rio Tinto (RIO) 5,150.00p -3.52%
Glencore (GLEN) 307.80p -3.28%
Imperial Brands (IMB) 1,538.50p -3.18%

FTSE 250 - Risers

Marshalls (MSLH) 778.00p 2.84%
OSB Group (OSB) 502.00p 2.24%
Future (FUTR) 3,904.00p 0.62%
Genuit Group (GEN) 679.00p 0.44%
VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 470.00p 0.43%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,658.00p 0.27%
Volution Group (FAN) 512.00p 0.20%
Countryside Properties (CSP) 560.00p 0.18%
Avon Protection (AVON) 1,978.00p 0.15%
Vectura Group (VEC) 163.80p 0.12%

FTSE 250 - Fallers

Helios Towers (HTWS) 157.20p -7.64%
Rank Group (RNK) 170.60p -6.88%
Harbour Energy (HBR) 323.80p -4.54%
Ferrexpo (FXPO) 362.20p -3.62%
Dixons Carphone (DC.) 135.90p -3.55%
Tullow Oil (TLW) 42.72p -3.46%
Liontrust Asset Management (LIO) 2,200.00p -3.30%
Micro Focus International (MCRO) 411.30p -3.29%
Network International Holdings (NETW) 380.00p -3.14%
Trainline (TRN) 344.20p -3.10%