FTSE 100 dragged lower by miners on China COVID-19 worries

UK stocks fell on Monday as worries about fresh COVID-19 curbs in China and the ongoing energy crisis in Europe hurt sentiment, with investors awaiting earnings reports for clues on economic and corporate health.

UK stocks fell on Monday as worries about fresh COVID-19 curbs in China and the ongoing energy crisis in Europe hurt sentiment, with investors awaiting earnings reports for clues on economic and corporate health. The blue-chip FTSE 100 fell 1.1% by 0708 GMT and the domestically focussed FTSE 250 index slid 1.0%. Both the indexes marked weekly gains on Friday.

Mining majors dragged the FTSE 100 lower, with Anglo American, Rio Tinto, and Glencore down between 3.4% and 5.6% as metal prices fell on the news multiple Chinese cities are adopting fresh COVID-19 curbs. Meanwhile, European markets remained on edge after the biggest single pipeline carrying Russian gas to Germany started annual maintenance on Monday amid worries the shutdown might be extended due to the war in Ukraine.

Domestically, the contest to replace British Prime Minister Boris Johnson gathered pace as five more candidates declared their intention to run, with many pledging lower taxes and a clean start. Wizz Air fell 5.4% after the Hungarian budget airline said it may reduce its aircraft usage in the peak summer period to hedge against labor shortages and strikes at European airports.