December 4, 2022

Global markets collapsed amid growing concerns about the health of the global economy.

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As the mini-budget spread across the city, the FTSE 100 dropped 1.97%, or 140.92 points, to 7,018.60 and the FTSE 250 dropped 1.96%, or 359 points, to 17,972. .69. The main benchmark in Germany fell 1.97%, while the CAC in France fell 2.28%.

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On Wall Street, the Dow Jones Industrial Average, the S&P 500 and the high-tech Nasdaq fell. Markets remain worried about the prospect of aggressive US interest rate hikes as central banks seek to rein in red-hot inflation.

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On the slide: When the mini-budget caused a stir in the city, the FTSE 100 fell 1.97%, or 140.92 points, to 7018.60.

In London, as Brent oil hovered above $86 a barrel, Shell fell 5.3%, or 124p, to 2,214.5p, while BP fell 5.5%, or 25.15p. , to 433.1 pence, while Harbor Energy fell 6.1 pence. cents, or 29.5 pence, to 452.6 pence.

Despite this, the city’s broker Jefferies gave positive ratings. Shell’s target price was raised to 3,300p from 2,700p, while BP was raised 70p to 490p. Mining stocks were hit by a reversal in metals prices, sending Fresnillo shares down 5.6%, or 41.2 pence, to 690.2 pence, while Antofagasta fell 5.9%, or 65.5 pence. pence, up to 1042.5 pence.

The good news for AstraZeneca comes a day after Chinese regulators approved a drug to treat ovarian cancer.

The pharmaceutical giant said Ultomiris has been approved in Europe for the treatment of adults with myasthenia gravis, a rare condition that interferes with normal muscle function. Despite this, it fell 1.9%, or 82 pence, to 10,016 pence.

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Some developers have been hit by the downgrade of the broker and the prospect of higher interest rates. Analysts at Jefferies cut Landsec’s target price to 641p from 672p, cutting it 5.9%, or 33.8p, to 535.8p.

The same fate befell British Land as its target price was cut from 459p to 420p. It fell 4.4%, or 16.8 pence, to 361.9 pence.

Prudential fared better after JP Morgan raised the insurer’s price target to 1,450p from 1,380p, saying new boss Anil Wadhwani could offer a chance to expand its financial and strategic targets. It rose 0.7%, or 6.4 pence, to 927.8 pence.

Burberry also announced some changes to its board of directors after its chief operating and financial officer said she would step down next April. Julie Brown, who has worked for a luxury fashion brand for six years, is leaving the industry. It fell 4.6%, or 79 pence, to 1,639 pence.

Smiths Group beat market expectations, reporting revenue growth of 3.8% to £2.56bn for the year to the end of July and rising 1.3%, or 19.5p, to 1,490p.

Moonpig was hit by broker downgrades after Citigroup and Jefferies slashed the online greeting card company’s target price, causing it to fall 8.1%, or 14.8p, ​​to 168.9p.

Similarly, shares in landlord Tritax Big Box fell 5.8%, or 8.6p, to 139.4p after Barclays cut its target price to 155p from 200p.

The Royal Mail has taken another hit due to a dispute with unions. Liberum analyst Gerald Khoo gave the stock a sell rating, saying his decision to offer to negotiate with Acas, a dispute resolution service, is likely to infuriate unions. It fell 4 percent, or 8.15 pence, to 196.45 pence.

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The outgoing boss of publisher Country Life and Four Four Two bought nearly £20,000 worth of shares just days after saying he would retire within the next 18 months. Zilla Bing-Thorn bought 1,276 shares of Future at 1,435p each as they fell 1.2%, or 16p, to 1,365p.

Shares in Longboat Energy rose 1.2%, or 0.5 pence, to 43 pence after the North Sea oil group said it may have discovered a significant gas field in Norway. Stifel analysts say this could be Longboat’s most impressive performance to date.