British blue-chip stocks fell on Friday, influenced by commodity-related stocks amid concerns about increasing COVID – 19 restrictions in China and reports that the new UK government wants to increase taxes on oil and gas producers.
Prime minister Rishi Sunak and Chancellor Jeremy Hunt examined additional tax increases and cuts in government spending, including an increase in windfall taxes on oil and gas producers, to plug a gap in government finances, the Financial Times reported.
The export-oriented FTSE 100 fell 0.9% at 0707 GMT but was on track for a weekly profit.
Energy stocks fell 0.7% after the index peaked more than two years on Thursday following Shell’s excellent results.
Oil and metal prices fell due to demand concerns after China, the world’s largest consumer of the raw materials, expanded its COVID-19 restrictions. [O/R] [MET / L]
Miners fell 3.1% after Glencore predicted a drop in second-half adjusted core profit for its trading unit as operations were affected by extreme weather in Australia and supply chain issues in Kazakhstan. The Swiss-based miner fell 3.3%.
The domestically oriented FTSE 250 fell 1%, but would also end the week significantly higher.
