European markets slide after sell-off in US tech stocks

4 September 2020, 17:34

Japan Financial Markets
Japan Financial Markets. Picture: PA

The FTSE 100 closed 51.78 points lower at 5,799.08 at the end of trading on Friday.

Markets across Europe slumped into the red after a sell-off in US tech stocks drove a widespread decline in sentiment.

The London markets were slightly protected by stronger mining stocks but nevertheless finished lower as declining confidence in Silicon Valley firms continued.

The FTSE 100 closed 51.78 points lower at 5,799.08 at the end of trading on Friday.

David Madden, market analyst at CMC Markets UK, said: “Like Thursday, European equity markets have been pulled into the red by the tech-led declines in the US.

“Stocks were showing modest gains on the back of the US non-farm payrolls report, but the bearish moves in the US rocked confidence over here.

“The FTSE 100 is holding up better than it continental counterparts as the rally in copper has helped mining stocks like Anglo American, Glencore and Antofagasta.”

Europe’s other major markets followed for a second consecutive day of broad decline across the global markets.

The German Dax decreased by 1.65%, while the French Cac moved 0.89% lower.

Across the Atlantic, the Dow Jones opened higher after the latest US jobs figure were in line with expectations before slumping later in the session.

Meanwhile, a strong trading period for the dollar hit sterling, wiping out some of its recent gains after a bullish week for the UK currency.

The pound fell by 0.92% versus the US dollar at 1.322 and was down 0.61% against the euro at 1.119.

A raft of major housing stocks dropped into the red after the UK competition regulator said it was investigating four of the sector’s largest firms over allegations of unfair practices in relation to leasehold agreements.

Barratt Developments, Countryside Properties, Persimmon Homes and Taylor Wimpey all saw their shares dive after the Competition and Markets Authority (CMA) said it found evidence that they had mistreated home-buyers.

Elsewhere in company news, Ryanair shares bucked the wider negative trend after the budget airline secured a 400 million euro fundraiser.

The Ireland-based company tapped investors to help position the firm to “move quickly” should opportunities in the sector be thrown up.

It closed 0.41p higher at 12.075p as a result.

Property developer Berkeley slipped after it told investors production continues to be “impacted” by the need for modified working practices and increased supervision on its sites.

It said that disruption on sites has been “minimised” and construction levels are “now at around 90% of normal”.

Shares closed down 173p at 4,475p on Friday.

Shopping centre owner Capital & Regional moved higher despite saying losses widened in the first half of the year.

The company, which owns seven UK shopping centres, closed 1.4p higher 70p after it posted a £115.5 million pre-tax loss after its property valuations tumbled 16%.

The price of oil tumbled again as traders were still worried that US demand for petrol tumbled last week

The price of a barrel of Brent crude oil decreased by 1.54% to 42.88 US dollars.

The biggest risers on the FTSE 100 were Anglo American, up 63.8p at 1,832.6p, Glencore, up 4.7p at 171.44p, Antofagasta, up 29p at 1083.5p, and Imperial Brands, up 34p at 1,304p.

The biggest fallers of the day were Barratt, down 37.6p at 501.8p, Scottish Mortgage Investment Trust, down 58.5p at 849p, Persimmon, down 138p at 2,503p, and Taylor Wimpey, down 6p at 114.85p.

By Press Association