London markets dropped on Thursday morning, unwinding much of their gains made on Wednesday following a massive sell-off earlier in the week triggered by fears of a US recession.
The blue-chip FTSE 100 dropped 0.97 per cent to 8,087.94 just after the open, while the mid-cap FTSE 250, which is more closely aligned with the health of the UK economy, fell 0.74 per cent to 20,422.77
Just six companies in the FTSE 100 saw their shares rise in early trading, underscoring the volatility in global markets this week.
Monday saw UK, European, and Asian stocks tank over worries that the US could be headed for a recession following much weaker-than-expected job figures.
While markets have since simmered down, fears of a downturn in the world’s largest economy continued to weigh on investor sentiment.
JP Morgan has raised the likelihood of a recession this year to 35 per cent to 25 per cent, with 45 per cent odds that it will come by the second half of next year.
The bank further warned on Thursday that JP Morgan around a quarter of the global carry trades that partly caused the recent market mayhem have not unwound yet.
Lloyd’s of London insurer Beazley was the FTSE 100’s biggest gainer this morning, up 11 per cent after it revealed that profit more than doubled to a new record in the first half of 2024 and improved its outlook for a key measure of profitability for the full year.
It was followed by Ladbrokes owner Entain, which rose eight per cent after reporting a narrower loss for the first half of 2024 and upgrading its guidance for growth in online net gaming revenue and group earnings before tax (EBITDA).
More to follow