- UK shares drop following falls in Asia and US markets
- There are concerns about the US economy
- Data showed US manufacturing activity remains subdued
- Investors now focussed on US jobs figures due on Friday
UK shares drop following falls in Asia and US markets
UK shares dropped on Wednesday morning following falls in Asian and US markets as concerns grow about the US economy – which is the world’s largest.
Data showed US manufacturing activity remains subdued, with investors now focussed on US jobs figures due on Friday.
Nvidia was hit particularly hard, slumping by almost 10% as optimism about the boom in artificial intelligence (AI) dampened.
Despite the sharp fall, Nvidia’s shares are still worth double their value a year ago.
The FTSE 100 index, which comprises the largest companies on the London Stock Exchange, dropped 0.55% by lunchtime, with major European indexes also down. Germany’s Dax fell 1.41%, France’s Cac 40 was down by almost 1%, and Spain’s Ibex was also lower, by 0.51%.
Market watchers are now trying to second-guess how the Federal Reserve, the US central bank, will respond when it meets to decide interest rate policy next week.