London stocks closed lower on Monday (February 6) after last week’s strong US economic data fueled fears of a further rise in interest rates. And senior Bank of England (BoE) officials expressed concern that interest rates need to be raised for a long time.
The London Stock Exchange FTSE 100 closed at 7,836.71, down 65.09 points, or -0.82%, after hitting a record high on Friday.
Almost all stocks closed lower. But precious metals rose 0.7% against the market.
Prudent stock Financial services companies that do business with China fell nearly 5 percent on worries about Sino-US geopolitical tensions.
The release of strong US economic data eased market concerns about a recession. But it is a sign that interest rates can continue to rise. BoE policy maker Catherine Mann was recommending further rate rises after the BoE raised rates for the 10th time in a row last week. and signaled further progress to curb high inflation.
Monday’s economic data release indicates that Britain’s construction sector announced its worst performance in almost three years in January. As rising interest rates hit housebuilding hard.
Investors will be keeping an eye on the earnings releases of major companies this week, such as BP, AstraZeneca. and Unilever
