London markets were feeling the pains of a faraway potential problem on Thursday, as the heavily weighted mining sector got hit by fresh troubles for China’s property China Evergrande.
“The heavily indebted property developer failed to complete a key asset sale to leave it teetering amid fears of wider contagion from a potential collapse of the business,” said AJ Bell financial analyst Danni Hewson, in a note to clients.
“This hit stocks with Chinese exposure, most notably the mining sector. China is the world’s biggest consumer of many metals and minerals,” added the analyst.
Other stocks falling included pest killer Rentokil Initial
with those shares down over 2%. Rentokil reported third-quarter organic revenue slightly below consensus expectations, though comments over its outlook “reassure that the group is on track to deliver a FY performance in line with guidance provided at the interims,” said a team of Jefferies analysts led by Kean Marden.
Shares of Barclays
eased about 0.4%. The U.K. bank reported gains in third-quarter pretax profit and total income ahead of market views. Citi analysts Andrew Coombs and Saifur Rahman said while the bank saw another good quarter and “capital return prospects look increasingly attractive,” they are cautious on the sustainability of the investment bank revenues and forecast expect flat group revenues in 2022 versus consensus of 2% growth.
The British pound
fetched $1.3869 versus the previous close of $1.3866.