The UK benchmark index has posted a hefty fall today, extending the previous session’s losses, following a plunge in shares in the US and Asia amid prospects for higher interest rates and global growth worries. Hargreaves Lansdown (LON:HL) is underperforming the FTSE 100 after updating investors on its recent trading.
FTSE 100 plunges
As of 12:27 BST, the Footsie had given up 115.95 points to stand 1.62 percent lower at 7,029.79, pressured by the ongoing risk-off sentiment around the world which has seen investors shun equities.
“The bloodbath for global equities comes as investors adjust to a world of higher US interest rates”, said Jasper Lawler from London Capital Group, as quoted by Reuters. “To say risk appetite has taken a hit would be an understatement.”
The Guardian meanwhile quoted Helal Miah, investment research analyst at The Share Centre, as commenting that the selloff had “been gathering strength for about two weeks now lead by the Asian markets as concerns were raised about China’s growth rate, but fingers will also point at the hike in tariffs between the US and China and the impending trade wars”.
Hargreaves Lansdown is underperforming the broader UK market, despite reporting a rise in assets under management, as the company’s boss warned of an “industry-wide slowdown in net retail flows”. The group’s shares are currently changing hands 4.93 percent lower at 1,852.00p.
International Consolidated Airlines (LON:IAG) has been another prominent Footsie faller after the Competition and Markets Authority launched an investigation into the Atlantic Joint Business Agreement, which includes American Airlines, Finnair and IAG’s British Airways and Iberia units. The group’s shares are 2.16 percent down at 578.60p.
Whitbread (LON:WTB) meanwhile is outperforming the selloff, having inched 0.30 percent lower at 4,618.00p, after reporting that its shareholders had backed the proposed sale of the group’s Costa Coffee business to The Coca Cola Company.