The FTSE 100 saw its worst morning this year pending news due tomorrow on US inflation as tech stocks brought down global markets.
The blue-chip index down more than 2% as markets opened.
Natwest fell as much as 5.4% after £1.1 billion of its shares were sold at a discount by the Government.
All but one of the FTSE 100 constituents were trading in negative territory with banks and miners among the largest losers.
The mid-cap FTSE 250 also fell by over 2% as both indexes tracked their worst daily performance in 3 weeks.
The largest drop was in tech stocks on global markets as fears the central banks could tighten monetary controls.
Tech giants including Facebook, Amazon, Apple, Netflix, and Google dropped 3.6% on Wall Street last night and Electric car behemoth Tesla dropped 6.4% with google also down 2.5%.
Concerns that Beijing will crackdown on tech saw Chinese tech giants Baidu, Alibaba and Tencent (knows as BAT) dropped more than 3%.
After chief executive of the food app Meituan posted an ancient Chinese poem on social media, Meituan dropped 10% losing $30 billion of its market value.
Meanwhile Sainsbury’s were up 0.16% and RSA Insurance remained flat.
The largest fall was engineering firm Renishaw dropping 6% followed by British Airways owner IAG down 5.8%.
Melrose Industries fell 5.5% and Royal Dutch Shell 4.2%.
After a sell off on Wall Street Asian tech stock fell as investors prepared for US inflation data.
The Hang Seng index dropped 3% after heavy selling in Hong Kong and brough the broader market down nearly 2%.
European early trades saw the pan-region Euro Stoxx 50 futures down 2% whilst Germany’s DAX dropped 2.1%.
The S&P 500 e-minis were also down 0.7% and the Nasdaq 100 fell 1.3%.
Inflation is, in our opinion, the only way governments are going to repay covid-19 debt. They are going to devalue it before repaying said debt back over the next 20 or 30 years.