UK stocks opened the week on the back foot amid rising fears of slowing global growth and persistent inflationary pressures, leading to stagflation.
Spiraling natural gas prices have led to a spike in electricity prices, causing smaller suppliers to struggle while some fertiliser plants have curtailed production after they became uneconomic to operate.
Shares in Hong Kong were 3% lower as the knock-on effects of troubled Chinese property group Evergrande spread to the wider market.
In Europe the German blue-chip index DAX fell nearly 2%. Brent Crude prices traded 1.2% lower at $74.4 per barrel.
In early trading the FTSE 100 index of leading shares was down 1.1% at 6,887, led by steep losses in mining and banking shares, while defensives, pharmaceuticals and food retailers outperformed.
SSE reiterated that it would provide an update on its growth strategy with its half-year results in November, including details of ‘significantly increased’ capital investment for the period to 2026. The shares lost 0.3% to £16.29.
Pharmaceutical firm AstraZeneca (AZN) and Daiichi Sankyo said their antibody drug Enhertu reduced the risk of disease progression or death from breast cancer by 72% versus the current breast cancer antibody drug conjugate.
The company said ground-breaking results from a phase three study supported the case for Enhertu to potentially become the new standard of care in previously treated patients. The shares gained 2.4% to £82.60.
Cox was currently a non-executive director of GlaxoSmithKline and Stena in Sweden and a previous chairman of manufacturing group Vallourec. Share replaces Larry Pentz, who will step down from the board at the company's 2022 annual general meeting after nearly eight years in the role. The shares lost 0.7% to £24.68.
Shareholders will vote on the proposed 12p per share final dividend, taking the full year pay out to 15.4p per share. The shares gained 0.2% to 430.8p.
Prudential said it would raise up to 5% of its issued share capital, or up to about 130.8 million shares, on the Hong Kong Stock Exchange through a public offer and international placing. The shares tumbled 6% to £13.60.
The company said it faced ‘persistent’ inflation and labour shortages challenges but maintained its long-term growth ambitions. The shares gained 1.3% to 96.2p.
Specialist contract research organisation and a world leader in vaccine and antiviral testing using human challenge clinical trials Open Orhan (ORPH:AIM) said first half revenues jumped 227% to £23.2 million while it reported an operating profit of £1.6 million compared to a loss of £6.3 million last year.
In a separate statement the company said it had secured a £5.7 million contract from a ‘specialist biotechnology company’ developing therapeutics for respiratory viral infections.
Open Orphan said it expected revenue from the contract to be recognised across 2021 and 2022. The shares added 1% to 25.8p.
For the six months ended 30 June 2021, assets under management rose 15% to £1.1 billion year-on-year, after receiving £73 million of new investment mandates, down 3% from the prior year.
The interim dividend was raised 6% to 34p per share. The shares gained 0.4% to 73.8p.
A list of FTSE 100 movers can be seen HERE