London’s main stock index fell to its lowest close in three months this afternoon amid a global market sell-off.
Commodity stocks were among the biggest losers, with Anglo American, Glencore, and Antofagasta declining due to falling metal prices. Vodafone and Shell also weighed heavily on the FTSE 100, which ended the session down 1.2% at 8,025.77.
Kathleen Brooks, research director at XTB, commented: “The stock market rally has hit a pause. European stocks suffered significant losses, and even U.S. stocks are seeing their gains slow.”
In continental Europe, major indexes declined on worries about the Chinese economy and a muted reaction to its latest fiscal stimulus measures. France’s CAC 40 dropped 2.7%, while Germany’s DAX fell 2.1%.
On Wall Street, the main indexes opened lower as the recent rally lost steam, although tech stocks remained broadly positive.
Meanwhile, sterling weakened further after new labor market data from the Office for National Statistics indicated that wage growth had slowed to its lowest level in over two years. The pound fell 1.09% against the U.S. dollar to $1.273 and declined 0.5% against the euro to €1.200.
