The FTSE 250 index fell 1.9% to 20,476.4 points, and the AIM index fell 1.6% to 1,031.9 points in early trading on Monday, after… Fears of closure in the Chinese capital, Beijing Investors’ fears of an economic slowdown increased as it appeared that production would stop in the “factory of the world.”
The combination of a potential lockdown in China and rising inflation rates to 7% in the UK and 8.5% in the US had investors’ teeth on edge as the market bore the brunt of a growing wave of pessimism on Monday.
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“The prospect of further restrictions in China could lead to a toxic mix of further inflationary pressures, with supply chains disrupted in the so-called ‘factory of the world’, and weaker economic growth,” said Ross Mould, investment director at AJ Bell.
“The result could be stagflation – a slowdown in the economy accompanied by rising prices – a drink that few investors will be able to stomach.”
Shares of BlackRock International Mining Company It fell 9% to 656p as mining shares sank and its holding in Anglo American took a hit on the back of the snag at the company’s Los Broncos copper project, which is in the firing line after Chilean regulators recommended blocking the operation. Anglo represents 7.9% of the fund’s holdings.
“The energy transition may depend heavily on copper but that does not mean it will be easy for miners to extract the metal from the ground,” Mold commented on Anglo’s delays.
‘While the world may benefit from wider availability of the mineral, which is crucial for renewables, electric vehicle components and infrastructure, local complaints about the environmental impact within Chile show the difficult balancing act faced by miners as they look to show off their new green products.’ credentials.”
Shares futures fell 5.6% to 22,430p after Barclays downgraded the company to ‘overweight’ with a price target of 3,300p from 3,900p.
Ferrexpo shares fell 5.1% to 165.4p after JPMorgan’s ‘neutral’ rating and cut its price target to 340p from 350p.
Liontrust Asset Management shares It fell 4.4% to 11,660 pence as the fund manager suffered the fallout from the sharp fall in global markets.
7digital Group shares rose 8.3% to 0.3 points after the company won a £1 million contract with a pan-Arian multinational consumer services company to provide an app-based music streaming service to boost the company’s customer engagement.
Paul Langworthy, CEO of 7digital, said: “This is a major multi-year contract for 7digital that reinforces our visibility into our expected revenues for the next two years.”
“It is an important approval of our bid which was awarded by a multinational company and after competitive tendering.”
Premier African Minerals shares rose 8.2% to 0.3p after the mining group announced a joint venture agreement with Li3 Resources, which is set to see Li3 Resources acquire a 50% stake in Premier’s solid lithium assets based in the Mutare Greenstone Belt. . In Zimbabwe.
“The Li3 project is located in an area of Zimbabwe that has significant interest in both potential lithium and gold deposits,” said George Roach, CEO of Premier African Minerals.
“The claims areas are well located and, in several cases, have already attracted interest from international lithium producers.”
Shares of Hummingbird Resources fell 19.4% to 14.1 points after its first-quarter production fell due to planned maintenance.
The group’s production fell 32% year-on-year to 15,548 ounces of gold, down from 22,781 ounces from its projects in Mali, Liberia and Guinea.
