FTSE 100 slides as U.S. tech woes weigh on global markets

U.K. stocks stumbled Wednesday, tracking a fall in U.S. equities in the previous session, in which technology names took a hammering.

How markets are moving

The FTSE 100 index
UKX, -0.87%
dropped 0.7% to 6,950.60, as only the utilities sector considered defensive moved higher. That fall contrasts with Tuesdays jump of 1.6% , which put an end to a four-session losing streak. The London blue-chip benchmark has lost more than 9% this year.

See: Brace for more poor action by U.K. stocks, says worlds largest asset manager

The pound
GBPUSD, +0.0212%
bought $1.4176, up from $1.4159 late Tuesday in New York.

Whats driving markets

On investors minds was the rout in tech stocks that led a sharp downturn on Wall Street on Tuesday. The Nasdaq Composite Index
COMP, -2.93%
ended down 2.9%, with shares of Twitter Inc.
TWTR, -12.03%
sinking 12% on worries about its data business. Facebook Inc.
FB, -4.90%
, still embroiled in a customer data scandal, lost nearly 5%.

The sector, which has been at the forefront of Wall Streets run higher this year, was also weighed on by news that the U.S. is considering a ban on Chinese investment in certain sensitive technologies.

By contrast, reports that the U.S. and China are conducting behind-the-scenes trade talks helped drive a surge in London-listed blue chips on Tuesday, as concerns about a global trade war abated.

Opinion: Who gets hurt in a trade war? Mostly not China

Elsewhere, oil stocks were falling alongside a drop in crude prices
CLK8, -0.95%
LCOK8, -0.48%
, after data from the American Petroleum Institute showed a sharp rise in weekly U.S. crude supplies.

What strategists are saying

Markets remain volatile, as another sharp swing lower on Wall Street tech stocks is driving equities lower and rippling through the asset classes, said Richard Perry, market analyst at Hantech Markets.

He noted that the U.S. 10-year Treasury yield pulled below a key near-term floor at 2.79%.

All this noise can be distracting for traders, but the medium-term corrective trends on equities and longer-term bear move on the dollar continue. Market fears over a trade war are still present, and whilst this is the case, there will be a negative bias in markets, Perry said in a note.

Stock movers

Oil producers BP PLC
BP., -1.77%
BP, -1.11%
and Royal Dutch Shell PLC
RDSB, -1.78%
RDS.B, -0.24%
each lost 1.2% as oil prices declined.

Among techs, shares of software maker Sage Group PLC
SGE, -1.08%
shed 1.4%, and business software maker Micro Focus International PLC
MCRO, +0.36%
slipped 0.1%.

BT Group PLC
BT.A, -0.70%
moved 0.3% lower after Ofcom, the U.K.s telecommunications regulator, confirmed new rukes aimed at boosting investment in full-fiber broadband networks. But it set a higher cap than previously outlined on the amount that BT charges to rivals to use its fast broadband service.

Paddy Power Betfair PLC
PPB, -1.52%
lost 1.4% as the betting company said Jonathan Hill, the current chief financial officer at Saga PLC
SAGA, -1.94%
, will be appointed as its new CFO.

Data docket

Oil supply data is due later Wednesday from the U.S. Energy Information Administration. Analysts polled by S&P Global Platts forecast a rise in stockpiles of 1 million barrels.

Related Topics United Kingdom London Stock Exchange London Markets Bank of England Europe European Markets

Quote References UKX -60.91 -0.87% GBPUSD +0.0003 +0.0212% COMP -211.74 -2.93% TWTR -3.84 -12.03% FB -7.84 -4.90% CLK8 -0.62 -0.95% LCOK8 -0.34 -0.48% BP. -8.40 -1.77% BP -0.45 -1.11% RDSB -41.00 -1.78% RDS.B -0.16 -0.24% SGE -7.00 -1.08% MCRO +3.40 +0.36% BT.A -1.55 -0.70% PPB -110.00 -1.52% SAGA -2.20 -1.94% Show all references
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Carla Moz茅e is a reporter for MarketWatch, based in London. Follow her on Twitter @MWMozee.

Carla Mozee

Carla Moz茅e is a reporter for MarketWatch, based in London. Follow her on Twitter @MWMozee.

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FTSE 100 Index GBP FTSE Indices: UKX 6,939.23 -60.91 (-0.87%)

Volume 0
Open 7,000
High 7,000
Low 6,923
P/E Ratio 0
Div Yield 0
Market Cap N/A

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