FTSE 100 Declines On Slowdown Worries

(RTTNews) - U.K. stocks fell on Thursday and were on course for their first quarterly drop since September 2020 amid worries about prolonged inflation leading to a global economic downturn.

The U.K. economy grew in the first quarter, as initially estimated, underpinned by household spending and investment, revised data from the Office for National Statistics showed earlier today.

GDP rose 0.8 percent from the fourth quarter, in line with the estimate published on May 12. This was slower than the 1.3 percent expansion seen in the fourth quarter.

Separate data from the Nationwide Building Society revealed that U.K. house price inflation eased more than expected to a six-month low in June.

The house price index logged a double-digit growth of 10.7 percent year-over-year in June, slightly slower than an 11.2 percent rise in May. That was just below the 10.8 percent increase expected by economists.

Moreover, this was the weakest house price inflation since December last year, when prices had climbed 10.4 percent.

The benchmark FTSE 100 was down 115 points, or 1.6 percent, at 7,197- on course for its biggest monthly decline since March 2020.

Mining and energy stocks fell across the board, tracking declines in metal and oil prices. Anglo American, Antofagasta, Glencore, BP Plc and Shell were down 1-2 percent.

Business supplies distributor Bunzl edged up slightly after upgrading its guidance for the year.

Clydesdale Bank parent company Virgin Money UK rallied 3.2 percent after it launched a share buyback program.