By Emily Horton
Retail gloom hit London markets on Monday, after online retailing giant ASOS PLC cut its full-year outlook, sending its rivals into the red.
Mining companies led the heavyweight gainers.
How are markets trading?
The U.K.’s FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.02% declined 1.1% to close at 6,773.24, after finishing up 1% last week.
What is driving the markets?
Shares of U.K. fashion retailers slid after ASOS /zigman2/quotes/209092221/delayed UK:ASC +0.04% warned of difficult November trading and cut its full-year outlook. Shares of ASOS, which list on London’s Alternative Investment Market of smaller companies, ended with a nearly 38% loss after the profit warning, helping send the shares of its rivals into the red.
Investors also looked to Wall Street, where stocks continued to tumble after a selloff on Friday. Attention will zero in this week on the U.S. Federal Open Market Committee policy meeting on Wednesday, where investors are expecting another interest-rate hike, but hoping for a dovish message.
The Bank of England will also hold its own policy meeting on Thursday, but isn’t expected to announce any changes to interest rates given the uncertainty surrounding Brexit. U.K. Prime Minister Theresa May is reportedly pushing back on the idea of a second referendum over Brexit, as she fights to keep her exit deal alive.
Mining stocks may be all ears for China’s annual Central Economic Work Conference that starts Tuesday. The government will set out policy direction and could announce stimulus for an economy that has shown signs of sagging.
What stocks are active?
On the heels of a slump for ASOS, shares in its major competitors also felt the heat. Boohoo Group PLC /zigman2/quotes/205655689/delayed UK:BOO +1.22% dropped by 13.7% and Quiz PLC /zigman2/quotes/202039150/delayed UK:QUIZ -4.72% slumped 17.2%. Marks and Spencer Group PLC /zigman2/quotes/206225481/delayed UK:MKS +0.03% and Next PLC /zigman2/quotes/200704121/delayed UK:NXT +0.74% each fell 4.6%.
Mining heavyweights were among the biggest gainers on Monday, with BHP Group PLC /zigman2/quotes/203323256/delayed UK:BHP -0.24% rising 2.7% after announcing it purchased 5% of its stock in a $5.2 billion buyback, funded by the sale of its U.S. shale unit. Glencore PLC /zigman2/quotes/201400686/delayed UK:GLEN -0.17% rose 1.1%, Rio Tinto PLC /zigman2/quotes/208934945/delayed UK:RIO -0.40% gained 2.4% and Anglo America PLC /zigman2/quotes/201381512/delayed UK:AAL +0.38% advanced 0.8%.