# London’s FTSE 100 falls over 1% amid global stock slump
Author: Pal sinha, Barnali
Author URL: https://startupobserver.com/author/pal-sinha-barnali/
Published: 2024-08-02
Category: Headlines
Category URL: https://startupobserver.com/category/headlines/
Meta Title: London stocks plunge on weak U.S. jobs report
Meta Description: Get the latest updates on London stocks as they plummet due to concerns over the American economy and commodity-linked losses. Stay informed with Reuters.
URL: https://startupobserver.com/londons-ftse-100-falls-over-1-amid-global-stock-slump/

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By Purvi Agarwal and Shubham Batra

(Reuters) -London [stocks](https://startupobserver.com/inflation-surprise-sets-uk-homebuilders-for-biggest-rally-since-2008/) rounded the week off with heavy losses amid a global risk-off mood after a weak U.S. jobs report spurred worries on the health of the American economy, while losses in commodity-linked [stocks](https://startupobserver.com/polish-stocks-rise-in-first-session-after-parliamentary-election/) added to the downbeat sentiment.

The blue-chip [FTSE](https://startupobserver.com/uks-ftse-100-dips-on-scope-of-tighter-monetary-policy-informa-jumps/) 100 index was down 1.3%, while the mid-cap [FTSE](https://startupobserver.com/uks-ftse-100-dips-on-scope-of-tighter-monetary-policy-informa-jumps/) 250 index slid 3.0% to clock its worst day since September 2022.

The unemployment rate in the U.S. jumped to a near three-year high of 4.3% in July amid a significant slowdown in hiring, heightening fears the labor market was deteriorating and potentially making the economy vulnerable to a recession.

Traders recalibrated their bets to price in a steeper than 25 basis point cut in the interest rates by the U.S. central bank in September.

“It’s time for the Fed to cut the federal-funds rate. The data quality issues make our picture of the [economy](https://startupobserver.com/uk-finance-minister-hunt-good-news-the-economy-is-growing/) somewhat murky. But there’s enough risk to call for substantially cutting rates now,” said Preston Caldwell, chief US economist at Morningstar.

In London, investment banking and brokerage stocks declined 4.3% after a 1.1% loss in the previous session.

Personal goods shares like Burberry fell nearly 5% after Italian peer Salvator Ferragamo reported a 41% decline in its first-half operating profit.

Industrial metal miners slipped 2.1% to hit their lowest level since March on lower gold and copper prices. \[MET/L\]

Banks extended their declines from the previous session with a 3.6% loss.

The sector had logged its worst day since February 2022 on Thursday on a quarter point rate cut by the Bank of England and as French lender Societe Generale [cut](https://startupobserver.com/factbox-european-companies-cut-jobs-as-economy-sputters-2/) its guidance for retail net interest income.

IAG Group climbed 4.7% to top the FTSE 100 after the British Airways owner terminated its proposed takeover of Spain’s Air Europa, citing regulatory concerns.

(Reporting by Purvi Agarwal and Shubham Batra in Bengaluru; Editing by Mrigank Dhaniwala and Toby Chopra)


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