By Steve Goldstein
Global growth fears sent U.K. stocks lower on Thursday with the mining sector retreating sharply.
The FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.36% dropped 1.8%, with miners including Anglo American /zigman2/quotes/201381512/delayed UK:AAL -0.64% , Glencore /zigman2/quotes/201400686/delayed UK:GLEN +0.71% and Ferrexpo /zigman2/quotes/208342608/delayed UK:FXPO -0.82% sliding by at least 3.5%. Futures on the Dow Jones Industrial Average /zigman2/quotes/210407078/delayed YM00 +0.29% fell over 500 points.
Banks including Barclays /zigman2/quotes/208409333/delayed UK:BARC +1.74% also slumped.
The drop came as bond yields slumped globally. The yield on the U.S. 10-year Treasury /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y +2.67% fell to 1.25%, and the yield on the 10-year U.K. gilt /zigman2/quotes/211347177/realtime BX:TMBMKGB-10Y +4.14% fell to 0.56%.
It was the first opportunity for overseas investors to react to the latest minutes coming from the U.S. Federal Open Market Committee, which showed division on the timing for reducing the rate of bond purchases.
The spread of coronavirus due to the new delta strain was also a worry, with Tokyo put in a state of emergency that will last the duration of the Olympic games.
Entain /zigman2/quotes/207493593/delayed UK:ENT -1.31% , the operator of Ladbrokes and PartyPoker, was one of the few stocks rising, adding 0.3% after saying full-year earnings will top consensus expectations and announcing investment in exclusive content. Total net gaming revenue surged 42% in the second quarter.