LONDON, March 25 — British shares slipped as fears of a recession in the United States sparked a sell-off in global markets and uncertainty over Brexit kept investors on the sidelines. Satellite operator Inmarsat jumped after agreeing to be bought out.
The FTSE 100 was down 0.4 per cent by 0940 GMT, recovering some initial losses after a survey on Monday showed that German business morale improved in March.
The FTSE 250 was down 0.6 per cent to its lowest since mid-February.
“Having seen a decent recovery from the lows at the end of last year, global stocks appear to have run out of steam, if Friday’s sharp declines are anything to go by,” said CMC Markets analyst Michael Hewson.
Last week’s cautious remarks from the US Federal Reserve and weak manufacturing data from Germany and the United States once again raised concerns about the world economy, making stocks, generally considered riskier assets, less appealing.
Stocks fell across the board. The dollar also weakened, dragging down internationally exposed components.
The next steps on Britain’s departure from the European Union were also up in the air. Prime Minister Theresa May spoke to some lawmakers on Sunday to muster support for her proposed Brexit deal, which they had already rejected twice. Reports circulated that her cabinet was plotting to oust her.
Uncertainty was compounded by an ITV report that May told Brexit-supporting lawmakers she would quit if they voted for her deal.
But a survey showing that German business morale improved unexpectedly in March after six consecutive declines suggested that Europe’s largest economy is likely to pick up in the coming months.
Stocks on the mid-cap index were also pummelled, but Inmarsat jumped 8.3 per cent to its highest since early September, after a private equity-led consortium agreed to buy the satellite operator for about US$3.4 billion (RM13.8 billion).
Medical devices maker ConvaTec added 4 per cent after naming Genus’s top boss Karim Bitar as its CEO. Genus shares shed 5 per cent.
Oilfield and engineering services provider Wood Group skidded 5 per cent after Jefferies cut its rating and flagged upcoming dividend risk.
AIM-listed Majestic Wine tanked 10.5 per cent and headed for its worst day since November after it said it would review its dividend policy as it looks to focus on its online retail business, Naked Wines. — Reuters
