FTSE 100 falls as consumer, commodity stocks drag on China COVID surge

UK's FTSE 100 fell on Thursday, with energy and consumer stocks leading declines, as optimism over China's reopening fizzled out in the face of surging COVID-19 cases in the world's second largest economy. The blue-chip index, down 0.6% by 0826 GMT, will post its biggest single day drop in two weeks if losses hold. Consumer stocks such Unilever and British American Tobacco also fell about 0.6%, weighing on the FTSE 100.

UK's FTSE 100 fell on Thursday, with energy and consumer stocks leading declines, as optimism over China's reopening fizzled out in the face of surging COVID-19 cases in the world's second largest economy.

The blue-chip index, down 0.6% by 0826 GMT, will post its biggest single day drop in two weeks if losses hold. The more domestically focused FTSE 250 was down 0.7%. Commodity prices dipped as surging COVID cases in China dimmed hopes of a recovery in fuel demand for the world's largest crude oil importer even as it began dismantling the world's strictest COVID regime of lockdowns and testing.

Oil majors BP and Shell lost 0.7% and 0.3%, respectively, as crude prices fell more than 1%, while base metal miners shed 0.3%. Consumer stocks such Unilever and British American Tobacco also fell about 0.6%, weighing on the FTSE 100.