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MARKET REPORT: Global markets tumble over health of economy

On the slide: As the mini-budget spread across the city, the FTSE 100 fell 1.97%, or 140.92 points, to 7,018.60

World markets tumbled amid growing fears about the health of the global economy.

As the mini-budget rippled through the city, the FTSE 100 fell 1.97%, or 140.92 points, to 7,018.60 and the FTSE 250 fell 1.96%, or 359 points, to 17,972.69. The main benchmark in Germany fell 1.97 percent, while France’s CAC fell 2.28 percent.

On Wall Street, the Dow Jones Industrial Average, the S&P 500 and the tech-heavy Nasdaq all tanked. Markets continue to be shaken by the prospect of aggressive interest rate hikes in the US as central banks scramble to rein in red-hot inflation.

On the slide: As the mini-budget spread across the city, the FTSE 100 fell 1.97%, or 140.92 points, to 7,018.60

On the slide: As the mini-budget spread across the city, the FTSE 100 fell 1.97%, or 140.92 points, to 7,018.60

In London, as the price of Brent crude hovered around $86 a barrel, Shell fell 5.3%, or 124 pence, to 2,214.5 pence, while BP fell 5.5 percent, or 25.15 pence. , at 433.1 pence, and Harbor Energy sank 6.1 percent. cent, or 29.5 pence, to 452.6 pence.

Despite this, the city’s broker, Jefferies, issued positive ratings. Shell’s price target was raised to 3,300 pence from 2,700 pence, while BP’s increased 70 pence to 490 pence. Mining shares took a hit as metal prices reversed, sending Fresnillo down 5.6 percent, or 41.2 pence, to 690.2 pence and Antofagasta down 5.9 percent, or 65 pence. .5 pence, to 1042.5 pence.

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There was more good news for AstraZeneca just a day after Chinese regulators approved a drug to treat ovarian cancer.

The pharmaceutical giant said ultomiris has been approved in Europe to treat adults who have myasthenia gravis, a rare disorder that prevents muscles from working properly. Despite this, it fell 1.9 percent, or 82 pence, to 10,016 pence.

Some real estate developers were hurt by a broker’s downgrade and the prospect of higher interest rates. Analysts at Jefferies cut Landsec’s price target to 641 pence from 672 pence, sending it down 5.9 percent, or 33.8 pence, to 535.8 pence.

British Land faced the same fate as its target price was lowered to 420 pence from 459 pence. It fell 4.4 percent, or 16.8 pence, to 361.9 pence.

Prudential fared better after JP Morgan raised the insurer’s price target to 1,450 pence from 1,380 pence, saying incoming boss Anil Wadhwani could provide an opportunity to broaden its financial and strategic goals. It rose 0.7 percent, or 6.4 pence, to 927.8 pence.

Burberry also announced some boardroom changes after its chief operating and finance officer said she would step down next April. Julie Brown, who has been with the luxury fashion brand for six years, is stepping away from the industry. She slid 4.6 per cent, or 79p, to 1,639p.

Smiths Group beat market expectations by posting a 3.8% rise in revenue to £2.56bn for the year to the end of July, and rose 1.3%, or 19.5 pence, to 1490 pence.

Moonpig was one of the victims of broker cuts after Citigroup and Jefferies cut the online greeting card company’s price target, sending it down 8.1 percent, or 14.8 pence. at 168.9 pence.

Similarly, owner Tritax Big Box sank 5.8 percent, or 8.6 pence, to 139.4 pence after Barclays cut its price target from 200 pence to 155 pence.

Royal Mail took another hit on the back of its dispute with the unions. Liberum analyst Gerald Khoo issued a “sell” rating on the shares, saying his decision to propose taking negotiations to Acas, the dispute resolution service, is likely to anger unions. It fell 4 percent, or 8.15 pence, to 196.45 pence.

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The outgoing head of the magazine publisher behind Country Life and Four Four Two snapped up almost £20,000 worth of shares just days after saying she would retire within the next 18 months. Zillah Byng-Thorne bought 1,276 shares in Future for 1,435 pence each as she fell 1.2 percent, or 16 pence, to 1,365 pence.

Longboat Energy rose 1.2 percent, or 0.5 pence, to 43 pence after the North Sea oil group said it may have made a major gas discovery in Norway. Stifel analysts said this could become Longboat’s most impressive result to date.

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