FTSE 100 falls as China’s COVID-19 curbs hit commodity stocks

  • FTSE 100 down 0.9%, FTSE 250 off 1%

Oct 28 (Reuters) – UK’s blue-chip shares fell on Friday, dragged down by commodity-linked stocks on worries over widening COVID-19 curbs in China, and on reports that the UK’s new government was looking to raise windfall tax on oil and gas producers.

Prime Minister Rishi Sunak and Chancellor Jeremy Hunt were exploring additional tax increases and public spending cuts, including an increase in windfall taxes on oil and gas producers, to fill a hole in public finances, the Financial Times reported. read more

The export oriented FTSE 100 (.FTSE) fell 0.9% by 0707 GMT, but was on track for weekly gains.

Energy stocks (.FTNMX601010) dropped 0.7% after the index touched an over two-year high on Thursday following Shell’s (SHEL.L) bumper results.

Oil and metal prices fell on demand concerns after China, the world’s top consumer of the raw materials, widened its COVID-19 curbs.

Miners (.FTNMX551020) dropped 3.1% after Glencore (GLEN.L) forecast a drop in second-half adjusted core earnings for its trading unit, as operations were hit by extreme weather conditions in Australia and supply chain snags in Kazakhstan. The Swiss-based miner was down 3.3%. read more

The domestically oriented FTSE 250 (.FTMC) declined 1%, but was also set to end the week sharply higher.

Reporting by Johann M Cherian in Bengaluru; Editing by Neha Arora

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