LONDON: Britain's main share index fell for a fifth straight day on Monday, weighed down by energy stocks as investors continued to cut their exposure to assets relying on global economic growth.
Energy shares knocked most points off the FTSE 100 as Brent crude hit a fresh four-year low. Worries about weakening demand were coumpounded by prospects of ample supply from Saudi Arabia and Kuwait.
Shares in oil major Royal Dutch Shell fell more than 1 percent.
A string of weak European economic data, lingering worries about an economic slowdown in China and other emerging markets, and the impending end of the Federal Reserve's monetary stimulus programme have pummelled global equities over the past week.
The International Monetary Fund's member countries said on Saturday bold action was needed to bolster the global economic recovery, but Germany poured cold water on the idea of a new global "crisis".
Further underscoring the fragile nature of the European economy, credit rating agency Standard & Poor's on Friday lowered its outlook on France to "negative" from "stable".
At 0747 GMT, Britain's FTSE was down 38.62 points, or 0.6 percent, at 6,301.35 points, taking its fall over the past five days to 4 percent, the steepest since January.
Charts showed the FTSE's next support level was 6,023 points, its low in June 2013 after the index broke out of an ascending trend started last year.
"There was a channel up from late last year which we now sold out from," said Anders S?derberg, chief technical analyst at SEB Bank. "The next natural target to look at is ... 6,023."
A surge in the price of gold, seen as a safer asset at times of economic uncertainty, boosted precious metal miners such as Randgold, providing some support to the broader market.
Miner Anglo American also got reprieve from the latest commodity-led selloff in mining stocks following a broker upgrade and more reports of potential asset sales in Chile.
Rio Tinto was boosted by a report in Barron's financial newspaper suggesting the stock of the mining company could rise as much as 20 percent in the next year, even with its recent rejection of Glencore Plc's takeover approach.
Comments
Comments are closed.