MARKET REPORT: Footsie Sinks on Disappointing China Stimulus

The FTSE 100 plunged as concerns over China sparked a sell-off between miners and oil majors.

On a gloomy day for investors, the blue-chip index fell 1.36 per cent, or 113.01 points, to 8,190.61 and the FTSE 250 fell 1.06 per cent, or 222.01 points, to 20,631.2.

The losses were driven by concerns about China’s lack of details on its plans to provide a stimulus package to shore up its ailing economy.

Last month, Beijing announced plans to inject more than £100bn into the economy and cut interest rates in a bid to boost growth.

But yesterday, in something of a disappointment, Zheng Shanjie, chairman of China’s National Development and Reform Commission, unveiled a package worth just £21.5bn.

Alicia García-Herrero, chief economist for the Asia Pacific region at investment bank Natixis, said: “The market is reacting to the lack of real fiscal stimulus.”

Concerns about the outlook for raw materials hit mining stocks: Anglo American fell 6.7 percent, or 163.5 pence, to 2,281.5 pence, Antofagasta fell 5.1 percent, or 102.5 pence, to 1,888 pence, Rio Tinto fell 4.8 per cent, or 256 pence. , to 5,044 pence and Glencore gave up 4.6 per cent, or 20 pence, to 417.5 pence.

Other Asia-focused stocks came under pressure.

Prudential fell 4.5 per cent, or 32.4 pence, to 687 pence, HSBC lost 4.2 per cent, or 29.2 pence, to 666 pence, investment fund Fidelity China fell 8.4 per cent cent, or 20.5 pence, to 224 pence and Burberry lost 4.4 per cent, or 29.8 pence. p, at 643.8p.

Oil prices gave up recent gains as Brent crude fell nearly 5 percent to below $78 a barrel.

BP fell 3.7 per cent, or 15.65 pence, to 406.65 pence and Shell lost 2.4 per cent, or 62 pence, to 2,576 pence.

Despite the bad weather, it was not all doom and gloom in London. Sandwich maker Greencore soared after raising its annual profit forecast thanks to strong trading and cost-cutting measures.

The company said profits for the year to September 27 appear to have been between £95m and £97m.

That would exceed the range of £87.1 million to £90 million predicted by analysts. The shares gained 8.8 per cent, or 15.8 pence, to 196 pence.

Sunbeds are also up, as the restaurant, bar and cafe operator recorded record trade at one of its new sites.

The group’s Ritorno Lounge in Bristol Harbour, which opened in July, has made the strongest start for a new site to date.

Positive trading helped the group’s revenue rise 19.2 per cent to £178.3 million in the 24 weeks to October 6 compared to the same period last year. Shares added 1.9 per cent, or 5p, to 271p.

Motorpoint accelerated as the car dealership returned to profit following increased customer demand driven by the interest rate cut in August.

The group expects to make a profit of £2m for the first half to the end of September, having suffered a loss of £3.7m the previous year.

The shares rose 4.6 per cent, or 7p, to 160p.

Vodafone signed a ten-year agreement with Google. The agreement will bring storage, security and

AI assistance to customers of the telecommunications giant. Google will use Vodafone services to improve workforce productivity. The shares fell 0.9 per cent, or 0.66p, to 73.84p.