Risk aversion saw the mining, personal goods and banking sectors fall on Monday as concerns over the global economic outlook saw investors flee for safety.
Mining peers Kazakhmys, Randgold, Vedanta Resources and Polymetal were among the worst performers on London’s benchmark index after Chinese Premier Wen Jiabao had some worrying words about the economy just a few days after China registered its sixth straight quarterly slowdown in growth.
‘It should be clearly understood that the momentum for a stable rebound in the economy has not yet been established,’ he warned according to a report from the state-run Xinhua news agency.
The comments also dented luxury brand Burberry as the business is heavily exposed to this high-growth region in the East.
The risk-off environment also saw banking stocks sold off with Lloyds and RBS heading south in afternoon trade. Sector peer Barclays was a sharper faller though as the Treasury Select Committee and the lender’s former Chief Operating Officer Jerry del Missier meet to discuss the LIBOR-fixing scandal.
Top performing sectors so far today
Construction & Materials 3,422.50 +1.66%
Forestry & Paper 6,015.80 +1.27%
Real Estate Investment Trusts 2,082.91 +1.08%
General Industrials 3,116.72 +1.05%
Food & Drug Retailers 3,940.06 +0.90%
Bottom performing sectors so far today
Industrial Metals & Mining 2,666.42 -1.53%
Personal Goods 18,839.73 -1.39%
Mining 17,392.65 -1.01%
Banks 3,592.85 -0.86%
Software & Computer Services 848.00 -0.82%