A worker takes shelter from the rain under a Union Flag umbrella as he walks past the London Stock Exchange in London, Britain October 1, 2008. REUTERS/Toby Melville

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  • Ideagen jumps after accepting $1.3 billion takeover offer
  • Industrial miners down as China’s COVID woes dampen demand outlook
  • FTSE 100 down 0.7%, FTSE 250 down 1.7%

May 9 (Reuters) – British stocks trailed Asian and European markets lower on Monday as tighter lockdowns in China added to investor worries about a recession amid the Bank of England’s bleak economic outlook last week.

The commodity-heavy FTSE 100 index (.FTSE) fell 0.7% in early trading, with miners (.FTNMX551020) leading the losses as metal prices fell on concerns over the request.

Industrial metal miners including Rio Tinto (RIO.L), Glencore (GLEN.L) and Anglo American (AAL.L) fell about 2.5% each.

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“The biggest concern in markets right now about the UK is that we’re likely to see fewer rate hikes over the next 12 to 18 months and much slower growth, but I don’t think we’re going to be unique in that,” said Michael Hewson, chief market analyst at CMC Markets, UK.

The FTSE 100 index has outperformed its European peers so far this year, but weakness in mining stocks in recent weeks is starting to weigh on the commodity-heavy index.

Miners weigh on the commodity-rich FTSE 100

Investors were already shaken after Britain’s central bank issued a stark warning on Thursday that Britain risked a double whammy of a recession and double-digit inflation. Read more

The pound fell 0.4%, limiting some losses on the export-heavy FTSE 100, against the national mid-cap index (.FTMC) down 1.7%.

Capital & Counties Properties (CAPCC.L) and Shaftesbury Plc (SHB.L) fell 4.3% and 2.9% respectively, after the property companies said they were in advanced talks on a merger that would bring London tourist destinations such as Covent Garden. and Soho under one umbrella.

Ideagen Plc (IDEA.L) jumped 46.1% as it agreed to a takeover by private equity firm Hg Pooled Management in an all-cash deal valuing the British software company at 1.09 billion pounds ($1.34 billion). Read more

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Reporting by Bansari Mayur Kamdar in Bangalore; edited by Uttaresh.V and Rashmi Aich

Our standards: The Thomson Reuters Trust Principles.

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