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UPDATE 1-FTSE 100 falls on fresh global growth worries; lift-off for easyJet

Tue, 22nd Jan 2019 10:44

* FTSE 100 down 0.6 pct; FTSE 250 up 0.2 pct

* UBS results weighs on financials

* Oil majors, miners among major blue-chip drags

* Mid-cap IG Group sinks after trading update(Adds analyst comment, updates share moves)

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 surged following itsresults.

The exporter-heavy FTSE 100 was down 0.6 percent at1008 GMT. A stronger sterling after better-than-expected UKemployment data also weighed slightly. The FTSE 250was up 0.2 percent.

The jobs data provided a glimmer of hope for the UK economyeven as uncertainty over the nation's divorce from the EuropeanUnion grows.

But the session's downbeat tone was set earlier after Chinawarned that falling factory orders pointed to a further drop inactivity in coming months and more job-shedding in the country.

This came after the world's No. 2 economy reported on Mondayits lowest annual economic growth since 1990.

Ahead of the World Economic Forum in Davos, theInternational Monetary Fund trimmed its global growth forecasts,adding to gloom across global financial markets, and a surveyshowed increasing pessimism among business chiefs as tradetensions loomed.

Oil and mining stocks were theworst performers, down 1.3 and 1.1 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 1.7 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 Switzerland's UBSdeepened concerns about the pain across the sector fromlow interest rates and rising political uncertainty.

Asset managers St James Place and Schroderswere down 1.5 percent and 0.8 percent respectively.

EasyJet surged 6.3 percent, on track for its bestday since January 2015, as investors cheered news the budgetairline maintained its full-year outlook even after counting thecost of the drone disruption at Gatwick airport in December.

"The drone disruption at Gatwick in December means theseresults aren't quite what easyJet was hoping for at the start ofthe year, but it hasn’t blown things too far off course," saidHargreaves Lansdown analyst Nicholas Hyett.

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

Online trading platform IG Group was down 7.1percent at the bottom of the index as regulatory clampdown ledto a 17 percent fall in its first-half profit. Itearlier hit a one-month low and dragged rival Plus500down 1.3 percent.

Dixons Carphone, which hit near decade lows earlierthis month amid worries about the poor state of the UK highstreet, jumped 3.4 percent as investors welcomed signs that theretailer's turnaround plan was making progress.

"In pretty nasty conditions, these latest numbers fromDixons Carphone are as good as could be hoped," said HargreavesLansdown analyst Laith Khalaf.

Pets at Home surged 7.7 percent to its highestsince May after reporting a rise in quarterly revenue on higherdemand for its pet products and grooming services.(Reporting by Shashwat Awasthi and Muvija M in Bengaluru;editing by Josephine Mason and Ed Osmond)

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