FTSE 100 slides after UK's growth forecast cut

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Source: Dukascopy Bank SA

UK stocks slid on Wednesday after Standard & Poor's cut Greece outlook from stable to negative. Adding pressure on the equities, the Bank of England reduced its UK growth forecast close to zero from 0.8%, citing double dip recession and zero inflation rate.  FTSE 100 Index lost 0.63% to trade at 5,811.21. Eight out of ten industries included in the index dropped. The only gainers were basic materials and financials. Among basic materials, Rio Tinto and AngloAmerican surged 2.81% and 0.22%. Rio Tinto advanced despite reporting a 22% slump in profits because of weak commodity prices. Meanwhile, financial shares rebounded after Tuesday's drop. Standard Chartered was the top-performer, rallying 10.15%. The bank denied allegations of New York's State Department of Financial Services that accused Standard Chartered of money laundering. At the same time, oil and gas companies posted the largest decline, with Tullow Oil and BP sinking 2.41% and 0.32%

 

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