Mining and oil stocks pull FTSE100 lower on concerns over rising Covid-19 cases in China

Euro Stoxx 50 index down as Russian-Ukrainian peace talks failed to yield results – Photo: Shutterstock

British stocks fell on Tuesday morning. The FTSE 100 index was weighed down by mining and oil stocks, on concerns about rising Covid-19 cases in China. China is a major consumer of mining products.

European equities reflected the same pessimistic sentiment. The Euro Stoxx 50 index is down on fears that the Russian-Ukrainian conflict could last longer than expected, as the peace talks did not yield much results.

Overnight in Asia, Hong Kong’s Hang Seng Index (HK50) fell.

US S&P 500 (US500) futures are pointing to a higher open.

What is interesting today: AstraZeneca (AZN) has announced that the US Food and Drug Administration (FDA) has requested more data as it considers approval of Fasenra for the treatment of a chronic nasal condition.

British American Tobacco (BATS) has revised its forecast for 2022 after announcing that it will leave Russia. BATS now expects revenue growth of 2% to 4% in constant currency and growth in adjusted diluted earnings per share in the constant currency averages.

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Why are stocks down today?

Mining and oil stocks fall: The FTSE 100 index was dragged lower by mining and oil stocks on Tuesday morning.

  • What does that mean: The mining industry has been one of the hardest hit by the Russian-Ukrainian conflict. Russia is a major producer of gold, palladium and nickel. Investors worry that supply chain constraints could delay exports as multinational sanctions on Russia increase and Russian products lose credibility in global markets.

Stock markets: highlights

  • The FTSE 100 (UK100) index fell 0.91% to 7127.9 points
  • The Euro Stoxx 50 (EU50) index fell by 1.10% to 3699.1 points
  • The German DAX index (DE40) lost 1.10% to 13,775.6 points
  • The French CAC 40 index (FR40) fell slightly by 1.15% to 6296.4 points
  • The main sectors were consumer services and finance while min
  • The US S&P 500 futures index rose 0.22% to $4172.5

Market sentiment

  • The CBOE Volatility Index, or VIX (VIX), a measure of expected fluctuations in US equities edged up 32.16
  • The US dollar index fell to $98.82
  • The index of US 10-year bond yields fell to 2.126%

Main buyers: United Kingdom and Europe

  • The main UK equity gainers were Pearson (PSON), London Stock Exchange Group (LSE) and M&G (MNG)
  • Pearson shares were acquired after the group turned down a takeover bid of 854.2p per share from private equity firm Apollo
  • Shares of the London Stock Exchange Group are down. UK markets infrastructure business recently halted all services in Russia
  • M&G shares rose slightly. The global investment manager has named Edward Braham as its new chairman of the board.
  • The best performing companies in Europe were Deutsche Borse (DB1), Volkswagen (VOW3) and ING Group (ING)
  • Deutsche Borse shares rallied after BNP Paribas raised its outlook
  • Shares of Volkswagen rose slightly as the company announced it would seek to expand beyond Europe in the event the Russian-Ukrainian conflict continues
  • ING Group shares gained. Last month, the band announced their the result for the year 2021 before tax increased by 78%

Main losers in equities: UK and Europe

  • The worst performing companies in the UK were Polymetal International (POLY), ITV (ITV) and Flutter Entertainment
  • Shares of Polymetal International fell. The company drops from the FTSE 100 index at the end of the month
  • Flutter Entertainment shares fell. The sports betting group released its annual report after announcing worse-than-expected results earlier this month.
  • The main stock market losers in Europe were Ab InBev (BUD, SAFRAN (SAF) and Adidas (ADSGN)
  • Ab InBev shares fell. Beverage maker to stop Budweiser sales in Russia
  • SAFRAN shares down following the signing of a memorandum of understanding to extend cooperation with HAL Aerospace on helicopter engines
  • Adidas shares have fallen despite the company’s recent announcement of strong 2021 results

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James T. Quintero