Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
London midday: Stocks stay down as miners take a hit
(Sharecast News) - London stocks were off earlier lows but still in the red by midday on Monday, with miners under the cosh after China reimposed Covid curbs. The FTSE 100 was down 0.6% at 7,155.91, amid expectations of more aggressive rate hikes by the US Federal Reserve after last week's better-than-expected payrolls report, and as investors looked ahead to the start of the second-quarter US earnings season.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: "The uncertain outlook is keeping stock markets volatile as worries wax and wane about scorching inflation and a global slowdown while Covid fears rear up again. Nerves are also frayed given that earnings season is also kicking off this week and US multinationals will be giving updates about how slowing consumer and businesses sentiment and rising costs may be affecting the bottom line.
"Signs that the Covid horror story is still not quite over are rattling nerves. China has re-imposed strict rules with 30 million people back in lockdown in six cities and region, including parts of Shanghai."
"The central worry affecting stock markets right now is that as central banks around the world take more aggressive steps to dampen down inflation, it will cause demand to fall rapidly pushing economies into reverse.
"A recession warning light is blinking with the two-year bond yields, commanding higher yields than ten-year bonds, given that this inversion is often seen as a sign that recession could be looming."
In equity markets, miners were under pressure, with Anglo American, Antofagasta, Glencore and Rio Tinto all lower.
Streeter said: "Worries are ratcheting up about the global downturn hitting demand for commodities. Iron ore prices have fallen to levels not seen since December, as stockpiles of steel build up following a slump in the Chinese property sector, while companies tread water impatient for Beijing's promised infrastructure boost to materialise."
BA and Iberia parent IAG was down amid ongoing travel chaos, with budget airlines Wizz and easyJet also on the back foot.
Wizz said on Monday that it was cutting its summer capacity by 5% due to staff shortages, as it reported a €285m operating loss for the first quarter. However, the airline also said it was expecting a "material" operational profit in the second quarter as revenue and pricing momentum continue to improve.
Danni Hewson, investment analyst at AJ Bell, said: "Despite its best efforts to aggressively grow its position in the low-cost airline market, Wizz Air's latest trading update doesn't paint a picture of a company flying high.
"While aircraft capacity is up compared with the period just before the pandemic, the percentage of bums on available seats has fallen.
"Wizz Air's ticket fares were down in the quarter and there has been a big jump in fuel costs. All in all, the airline was loss-making in its first quarter, meaning the considerable effort put into making it a winner in the industry hasn't actually generated any extra money in its pocket."
Other travel-related shares fell, with Carnival, Tui and SPP all weaker.
Market Movers
FTSE 100 (UKX) 7,155.91 -0.56% FTSE 250 (MCX) 18,850.97 -0.33% techMARK (TASX) 4,336.93 -0.13%
FTSE 100 - Risers
Melrose Industries (MRO) 158.75p 1.89% Aveva Group (AVV) 2,380.00p 0.93% Coca-Cola HBC AG (CDI) (CCH) 1,863.50p 0.92% Compass Group (CPG) 1,776.00p 0.91% Airtel Africa (AAF) 149.00p 0.88% Next (NXT) 6,328.00p 0.73% Harbour Energy (HBR) 327.50p 0.55% Reckitt Benckiser Group (RKT) 6,272.00p 0.42% Standard Chartered (STAN) 581.00p 0.28% BAE Systems (BA.) 812.00p 0.27%
FTSE 100 - Fallers
Anglo American (AAL) 2,701.00p -4.37% Antofagasta (ANTO) 1,074.50p -3.46% Endeavour Mining (EDV) 1,627.00p -3.04% International Consolidated Airlines Group SA (CDI) (IAG) 107.20p -2.65% Smurfit Kappa Group (CDI) (SKG) 2,714.00p -2.58% WPP (WPP) 784.00p -2.07% Fresnillo (FRES) 669.20p -2.05% Abrdn (ABDN) 160.40p -2.02% Informa (INF) 535.20p -1.47% Shell (SHEL) 2,014.00p -1.44%
FTSE 250 - Risers
CMC Markets (CMCX) 290.50p 3.75% Computacenter (CCC) 2,488.00p 2.89% Darktrace (DARK) 323.50p 2.70% Games Workshop Group (GAW) 7,210.00p 2.41% Trainline (TRN) 360.70p 2.38% JTC (JTC) 638.00p 2.24% Mitie Group (MTO) 60.50p 2.20% Wetherspoon (J.D.) (JDW) 630.00p 2.19% Future (FUTR) 1,887.00p 1.73% BH Macro Ltd. GBP Shares (BHMG) 4,625.00p 1.65%
FTSE 250 - Fallers
888 Holdings (DI) (888) 151.10p -5.09% Chrysalis Investments Limited NPV (CHRY) 98.40p -5.02% Wizz Air Holdings (WIZZ) 1,790.50p -3.66% Ferrexpo (FXPO) 116.10p -3.57% Genuit Group (GEN) 378.50p -2.95% Helios Towers (HTWS) 124.40p -2.81% SSP Group (SSPG) 231.40p -2.77% ITV (ITV) 66.22p -2.47% Bridgepoint Group (Reg S) (BPT) 213.20p -2.47% Carnival (CCL) 673.20p -2.43%
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.