British equities edged lower on Monday as concerns over the prospect of a global economic slowdown hit the internationally focussed FTSE 100, while mining stocks slipped as metal prices came under pressure.
The FTSE 100 lost 0.1% to dip well below the two-week high it hit in intraday trading as a rally in oil stocks on higher crude prices fizzled out.
A survey showed the U.S. services sector barely grew in May, sparking worries of a slowdown in the world’s largest economy.
“Concerns about the U.S. heading into recession are weighing heavily on the index,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Mining stocks bore the brunt of the selling pressure, with base and precious metal miners falling 0.5% and 3.0% respectively, tracking a global decline in metal prices.
The mid-cap FTSE 250 also dipped 0.2%.
ASOS surged 7.1% after a report said Alibaba-backed Turkish retailer Trendyol had made a 1 billion pound ($1.24 bln) takeover bid for the company.
London-listed shares of Indivior jumped 7.8% after the U.S. drugmaker agreed to settle a lawsuit accusing it of illegally suppressing generic competition for its opioid addiction treatment Suboxone.
Britain’s telecommunications sector rose 2.0%, rebounding from its May lows after a report said Amazon.com was negotiating to get low-cost wireless services for its Prime members.
Diageo said CEO-designate Debra Crew will assume the top role on an interim basis immediately as long-time boss Ivan Menezes undergoes medical treatment. Shares of the world’s largest spirits maker fell 1.2%
Following a disappointing end to May, UK equities have slowly recovered as investors remain hopeful that central banks around the globe could hit pause on monetary tightening, starting with the Federal Reserve.
Back home, data showed British services firms reported the strongest input cost pressures in three months in May.
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