The FTSE 100 is down by 0.36% on Friday morning to 7,053 points with healthcare being the only sector in fashion, thanks to positive news on a cancer drug from AstraZeneca.
Miners were weak as investors started worrying about the potential fall-out should Evergrande go bust. Commodities demand could tumble if the Chinese property market experiences a crash.
“Markets flashed red across Europe and Asia on Friday as uncertainties remained over the future of troubled Chinese property developer Evergrande, with no news on whether it had made its latest bond interest payment,” says Russ Mould, investment director at AJ Bell.
Consistent and rising inflation could mean that central banks have to act soon to get the situation under control which means interest rate hikes sooner rather than later.
“However, there is a bleak winter ahead given pressure on energy prices, supply chain problems and a sharp hike in the cost of living,” Mould added.
“All these factors threaten economic growth, so central banks have a fine line to tread – raise rates too quickly and the economy could falter, but don’t act and risk inflation racing away.
FTSE 100 Top Movers
Rolls-Royce (2.95%), AstraZeneca (2.08%) and IAG (1%) are the top risers during the morning session on Monday.
Rentokil Initial (-2.69%), Croda international (-2.34%) and Bunzl (-2.28%) make up the bottom three on the FTSE 100.
