The FTSE 100 was down marginally on Friday as the market ended the week on a tepid note, following a 5% drop over June marking the worst month for the FTSE 100 since the first shock of the Covid-19 pandemic in 2020.
US markets also had a dismal June which culminated in the worst quarter for the NASDAQ since 2008.
Meanwhile, the S&P 500 closed up 1% on Friday as bargain hunters stepped into to provide some support.
“We already knew this year’s stock market performance had been miserable but when we see headlines flashing about the worst first-half for US equities since 1970 and the worst month for the FTSE 100 since the pandemic-induced market crash in 2020, the brutal severity of the losses really hits home,” said AJ Bell investment director Russ Mould.
Fears of a global slowdown on recession worries sent commodities groups falling, with Anglo American down 1.4% to 2,894.2p, Antofagasta sliding 1.9% to 1,132p, Endeavor tumbling 2.2% to 1,6645p, Fresnillo falling 2.5% to 747p, Glencore dipping 1.6% to 437.8p and Rio Tinto declining 1.1% to 4,860.5p.
However, analysts sought to find a sliver of light at the end of the tunnel, and assured investors that prices would rise again once the gloomy outlook had cleared.
“Whether you’re paying into a retirement savings pot through your workplace, or running your own personal pension, the drop in the market means your savings are worth that bit less,” said Mould.
“But this is not a time to panic. Stock markets go up and down, businesses go through good and bad cycles, and economic growth certainly does not travel in a straight line. The key is patience and hopefully the current state of despair will fix itself in time.”
The price of oil rose to $111 per barrel for benchmark Brent Crude, after supply fears in Libya and worries of a shutdown in Norway caused the price to rally.
Shell shares gained 1.5% to 2,166p, however BP shares slid 0.4% to 386.5p despite the rise in prices.
