Global gloom hits UK stocks, Royal Mail slides on broker downgrade

The blue-chip FTSE 100 fell 0.9 per cent by 0712 GMT, while the midcap FTSE 250 index also dropped 0.9 per cent. — Reuters pic

Tuesday, 24 May 2022 3:36 PM MYT

NEW YORK, May 24 — UK’s FTSE 100 slipped yesterday as the global mood soured due to bleak results from social media firm Snap Inc, while shares in Royal Mail slid after a brokerage downgraded the postal company.

The blue-chip FTSE 100 fell 0.9 per cent by 0712 GMT, while the midcap FTSE 250 index also dropped 0.9 per cent.

The tech-heavy Nasdaq’s futures tumbled 2 per cent, pointing to sharp opening losses for Wall Street after Snap Inc said the economy had worsened faster than expected in the last month and slashed its quarterly forecast. Its shares 1SI.F were down about 35 per cent in Frankfurt trading.

British advertising group WPP tumbled 3.1 per cent to hit its lowest since March 8, while broadcaster ITV dropped 3.6 per cent.

Royal Mail slid 6.5 per cent after Peel Hunt downgraded the stock to “sell” from “buy”, saying it now assumes no dividends or buybacks citing a weakening consumer environment and inflationary pressures.

Restaurant Group Plc inched up 0.7 per cent as it said strong sales at Wagamama and its Frankie & Benny’s chain of restaurants were helping offset the impact of inflation on expenses. — Reuters