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FTSE 100 falls as fresh global growth worries weigh; lift-off for easyJet

Tue, 22nd Jan 2019 09:26

(For a live blog on European stocks, type LIVE/ in an Eikonnews window)

* FTSE 100 down 0.3 pct; FTSE 250 up 0.1 pct

* UBS results weighs on financials

* Oil majors, miners among major blue-chip drags

* Mid-cap IG Group sinks after trading update

Jan 22 (Reuters) - Britain's FTSE 100 was lower in a broadsell-off across Asian and European markets on Tuesday as renewedworries about global economic slowdown hurt heavyweight energy,mining and banking stocks while easyJet took off after itsresults.

The FTSE 100 was down 0.3 percent while thedomestically-focused FTSE 250 was up 0.1 percent by 0920GMT, inline with its European peers.

China warned that falling factory orders pointed to afurther drop in activity in coming months and more job sheddingin the country. This came after the world's No. 2 economyreported its lowest annual economic growth since 1990 on Monday.

Ahead of the World Economic Forum in Davos, theInternational Monetary Fund trimmed its global growth forecastsand a survey showed increasing pessimism among business chiefsas trade tensions loomed.

While the IMF forecast didn't contain any major surprises,it added to the general gloom across global financial markets.

Oil and mining stocks were theworst performers, down 1.1 and 1.0 percent respectively, as thesour mood weighed on crude and metal prices.

BHP Group's weak outlook for iron oreoutput pushed its shares down 1.8 percent.

Shell slipped 1.4 percent and was the main drag onthe blue chips, after Morgan Stanley downgraded the stock to"underweight" in a note that highlighted worries about the oilmajor's cash-intensive pledge for share buybacks, dividends anddebt reduction.

Banks fell 1 percent on track for their worstday in over two weeks, as weak results from Swiss heavyweightUBS deepened concerns about the pain across the sectorfrom low interest rates and rising political uncertainty.

At home, investors reflected on Prime Minister Theresa May'sPlan B for a European Union divorce deal in which she proposedfurther concessions to the much-debated Irish backstop butrefused to rule out a no-deal Brexit.

Budget airline easyJet rallied 4.3 percent to thetop of the leader board, reversing opening losses, as investorswere relieved the company maintained its full-year outlook evenafter counting the cost of the disruption at Gatwick airportfrom the drone in December.

Mid-caps saw a slew of trading updates which helped driveindividual moves.

At the bottom of the pack, online trading platform IG Groupwas down 6.4 percent as regulatory clampdown led to a 17percent fall in its first-half profit. It fell asmuch as 13 percent to a one-month low in early trade. Its rivalPlus500 was down 1.7 percent.

Lender Close Brothers was down almost 2 percentafter its trading update.

Dixons Carphone, which hit near decade lows earlierthis month amid worries about the poor state of the UK highstreet, brought some cheer as investors welcomed signs that theretailer's turnaround plan was making progress. Theshares rose 1.5 percent.

Pets at Home rallied on the small caps to a Mayhigh after reporting quarterly rise in revenue due to higherdemand for its pet products and grooming services.(Reporting by Shashwat Awasthi in Bengaluru; editing byJosephine Mason)

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