London markets turn to cigarettes and gold as geo-politics panics
It appears investors in the blue-chip index were resorting to gold and cigarettes today, as London markets grapple with the declining geo-political landscape.
The capital’s premier FTSE 100 index closed 1.69 per cent lower at 7,531.59 points, while the domestically-focused FTSE 250 index, which is more aligned with the health of the UK economy, dropped 1.95 per cent to finish at 21,617.89 points.
Heightened fears between Russia-Ukraine left investors fleeing stocks, with oil shares particularly under fire.
Not only did this wipe about £580m from the tycoon’s fortune, but it also crowned the stock as the FTSE 100’s top faller of the day. BP plunged 3.97 per cent, as investors started to panic.
It is no surprise that travel stocks also took a beating, with Wizz Air and TUI amongst the hardest hit.
On market close, Danni Hewson, AJ Bell financial analyst, said: “Today has been one of those days when fear tumbles into volatility helped by some investors rushing to take profits just in case today’s fall is just the first step down but ready to back buy bargains if the price is right tomorrow.”
However, there is a shimmer of hope for gold miners, with Fresnillo topping the index – up 6.97 per cent. Precious metals firm Polymetal and British American Tobacco were also close behind, up 1.98 per cent and 1.2 per cent respectively, with the latter boosted by its buyback announcement last Friday.