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UPDATE 2-Energy, mining stocks drag FTSE 100; Cineworld slides

Published 2021/03/25, 11:36
Updated 2021/03/25, 19:24
© Reuters
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(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)

* Cineworld slides after posting annual loss

* Rio Tinto falls on class action lawsuit

* FTSE 100 down 0.6%, FTSE 250 off 0.6% (Updates to close)

By Shivani Kumaresan and Amal S

March 25 (Reuters) - London's FTSE 100 ended lower on Thursday on a slide in energy and mining stocks, while concerns over renewed coronavirus lockdowns in Europe dented optimism for a swift economic recovery.

The blue-chip FTSE 100 index .FTSE ended 0.6% down, with oil heavyweights BP Plc BP.L and Royal Dutch Shell Plc RDSa.L falling 2.6% and 2.9% respectively, weighed by weaker crude prices. O/R

Miners including Rio Tinto RIO.L , Anglo American (JO:AMSJ) AAL.L , Glencore GLEN.L and BHP BHPB.L were among the biggest drags, falling between 1.3% and 3.9%.

"Investors seem increasingly concerned that the reopening of the global economy is going to experience more setbacks, meaning it is no longer a given that we'll see soaring commodities demand," said Russ Mould, director at investment platform AJ Bell.

"The market was high on vaccine-inspired euphoria in late 2020, pricing in a lot of future earnings growth before it happened. Now reality is sinking in that earnings forecasts could turn out to be too optimistic."

The FTSE 100 and the mid-cap FTSE 250 .FTMC indexes have recovered more than 36% and 72%, respectively, from a coronavirus-driven crash last year as investors bet on a vaccine-led economic rebound. But a recent rise in coronavirus cases has dampened sentiment. (Graphic: https://tmsnrt.rs/34pvUyi)

Meanwhile, Bank of England Chief Economist Andy Haldane said he remained confident that Britain's economy was poised for a quick bounce-back as the country races ahead with its coronavirus vaccinations and restrictions are lifted. domestically focused mid-cap FTSE 250 fell 0.6%, weighed down by consumer discretionary stocks.

Cineworld CINE.L fell 7.6% to the bottom of the mid-cap index, after saying it plans to ask shareholders to approve a raise in its debt ceiling next month to allow it to borrow more money to shore up its shattered finances, following a $3 billion loss in 2020. Tinto RIO.L fell 1.3% after the largest minority shareholder in miner's Mongolian copper project Oyu Tolgoi has filed a class action lawsuit in New York, claiming the company concealed massive cost overruns and delays.

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