FTSE 100 dips after Sensex and other Asian stock markets fall sharply

Chinese stocks fall on Tuesday while Japan’s Nikkei records moderate gains

FTSE follows Asian markets lower (AP)

London’s FTSE 100 fell 0.8 per cent shortly after opening on Tuesday after finishing the previous session flat.

The blue-chip index had declined heavily in the early trading hours on Monday, dragged by energy stocks, while mining stocks helped cap losses as worries of Covid-19 infections subsided.

However, worries resurfaced as UK markets began trading on Tuesday, sending the FTSE down 1 per cent to 6,953.39.

Flutter Entertainment Group, which owns Paddy Power Betfair was among the biggest gainers with a 1.5 per cent rise. Consumer goods giant Reckitt Benckiser was the biggest faller, dropping 9 per cent after swinging to a $1.9bn loss in the first half of the year.

Rio Tinto was the second-biggest loser, falling 2.3 per cent, after it said that it planned to cut production at its aluminium smelter in Canada because of strikes by workers.

The domestically focused FTSE 250 fell 0.9 per cent to 22,728 in early trading on Tuesday.

European stocks fell into the red with the Stoxx 600, falling 0.7 per cent to 458.06. Germany’s DAX was down 0.8 per cent and France’s CAC 40 fell 0.5 per cent.

Across the pond, US indices hit record highs with S&P 500 advancing gains ahead of a busy week of earnings reports from technology’s heaviest hitters. The broad equity benchmark rose 0.2 per cent to a fresh record close of 4,422, extending its winning streak to five days.

The Dow Jones Industrial Average gained 0.2 per cent, on Monday, lifting it to an all-time high of 35,144.31, also rising for a fifth straight day. The tech-heavy Nasdaq Composite closed slightly higher at 14,840, hitting a new high but closing a little shy of 15,000 mark it was expected to hit soon.

On Tuesday, shares in Asia-Pacific continued to trade mixed with Hong Kong’s Hang Seng index falling sharply along with volatility in mainland Chinese markets following Beijing’s sweeping regulatory overhaul.

The Hang Seng fell 5 per cent to 24,891 while the Shanghai Composite traded 2.5 per cent down at 3,381. Japan’s Nikkei, however, registered modest gains of 0.5 per cent, ending Tuesday’s session at 27,970.

Indian equity benchmarks Sensex and Nifty initially rose on Tuesday led by metal and banking stocks. However, the gains were quickly erased, with the Sensex closing down 0.6 per cent at 52,538. The Nifty50 index was also down 0.6 per cent at 15,726.