London’s FTSE 100 falls after U.S. recession fears spark global rout

The blue-chip FTSE 100 index (.FTSE), opens new tab fell 2.0% to its lowest since April 22 and clocked its worst day in over a year. The mid-cap FTSE 250 index (.FTMC), opens new tab was off 2.8% after falling to its lowest level in more than three months.

Friday’s data showed a sharp slowdown in U.S. job growth, raising fears of a deterioration in the American labour market and a potential recession, prompting bets for a half-point interest rate cut in September by the Federal Reserve to prevent a slowdown.

Water utilities (.FTNMX651020), opens new tab were the worst hit with a 4.0% decline, after Barclays said it was no longer positive on the sector and downgraded ratings on companies like Severn Trent (SVT.L), opens new tab and Pennon (PNN.L), opens new tab.

Worries of a U.S. recession also hit the oil markets, with energy shares (.FTNMX601010), opens new tab finishing lower at 3.2%.

Precious metal miners (.FTNMX551030), opens new tab closed 3.3% lower as gold prices fell on wider market sell-off.

Meanwhile, a survey showed that domestic services companies reported an influx of new orders and the biggest rise in employment for over a year during July.

Separately, the Institute for Supply Management (ISM) report showed that services sector activity in the U.S. rebounded from a four-year low in July, which could help assuage fears of a recession.

John Wood Group (WG.L), opens new tab fell over 35.0% to the bottom of the FTSE 250 after Dubai’s Sidara said it was walking away from its plan to buy the British oilfield services and engineering firm.

text_section_type=”notes” For related prices, Reuters users may click on – * UK stock report FTSE index: techMARK 100 index: (.FTT1X), opens new tab FTSE futures: Gilt futures: Smallcap index: (.FTSC), opens new tabFTSE 250 index: (.FTMC), opens new tab FTSE 350 index: (.FTLC), opens new tabMarket digest: (.AD.L), opens new tab Top 10 by vol: (.AV.L), opens new tabTop price gainers: (.NG.L), opens new tab Top % gainers: (.PG.L), opens new tabTop price losers: (.NL.L), opens new tab Top % losers: (.PL.L), opens new tab * For related news, click on – * UK hot stocks: HOT and GB Wall Street: Gilts report: Euro bond report Pan European stock report: Tokyo stocks: HK stocks: Sterling report: Dollar report: * For company prices, click on – * Company directory: By sector: * For pan-European market data, click on – * European Equities speed guide……………. FTSE Eurotop 300 index……………………… (.FTEU3), opens new tabDJ STOXX index…………………………….. (.STOXX), opens new tabTop 10 STOXX sectors…………………… (.PGL.STOXXS), opens new tabTop 10 EUROSTOXX sectors………………. (.PGL.STOXXES), opens new tabTop 10 Eurotop 300 sectors……………… (.PGL.FTEU3S), opens new tabTop 25 European pct gainers……………….. (.PG.PEUR), opens new tabTop 25 European pct losers………………… (.PL.PEUR), opens new tab