A SHARES slump inspired by the failure of Japanese policymakers to deliver new stimulus measures saw blue-chip stocks slide yesterday.
The FTSE 100 Index was down more than 100 points during the session though it had partially recovered by the close to end 60.4 points down at 6340.1, still a fall of nearly one per cent.
Miners dominated the fallers board, with Evraz down by nearly six per cent.
The slide came after Japan’s Nikkei fell one per cent overnight, giving up some of the 4.9 per cent rise seen after an upward revision of first quarter economic growth data on Monday.
A statement issued by the Bank of Japan announced no major policy changes but reiterated its expectation for a moderate recovery in the coming months.
Analysts had been hoping to see more from the central bank, either in the way of more actual stimulus or simply verbal reassurances.
But the fact that markets slumped so heavily on the development appears to indicate a wider malaise. European markets were also down steeply, with Germany’s Dax and Paris’s Cac 40 both seeing falls of more than one per cent.
Traders in New York, however, appeared to be holding firm, with the Dow Jones Industrial Average flat at the close in London.
On the currency market, the pound was flat against the dollar and the euro, at 1.56 dollars and 1.17 euros.
Joshua Mahony, research analyst at Alpari, said: ‘‘Given the size and scope of this reaction, it is clear that investors have changed tack from one in which the default reaction is to buy, to one in which every market event is analysed from a more sceptical point of view.’’ Anglo American shares were down more than three per cent, or 50p, at 1371.5p while other big fallers included Randgold Resources, dropping nearly two per cent, or 99p, to 4926p, while Rio Tinto was off 37.5p, at 2702.5p. Evraz fell 7.3p to 117.3p.
In corporate news, Britvic and AG Barr shares were flat despite the backing of the Competition Commission for the pair’s £1.4bn merger.
The tie-up lapsed in February because of delays caused by the Office of Fair Trading’s decision to refer the matter to the commission, and in a statement yesterday Britvic indicated that a fresh agreement was far from certain.
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