JITTERS over a slowdown in the global economy pulled industrial stocks lower yesterday, taming gains on London's FTSE 100, but Frasers Group boosted the mid-cap index.

The capital's premier index edged 0.09 per cent higher to 7,270.51 points, while the domestically-focused midcap FTSE 250 index, which is more aligned with the health of the UK economy, jumped 1.59 per cent higher to 19,709.24 points.

Scorching inflation and rising business costs are crimping economic activity, sending a chill through global output.

Investors are also worried central banks will tip their respective economies into recession by raising rates rapidly to tame historic price rises. The European Central Bank yesterday hiked rates by a shock 50 basis points.

Those concerns over a reduction in global demand weighed on FTSE 100- listed commodities producers.

BP and Shell, which represent an enormous share of the index meaning movements in their share price exert a strong influence over its direction, both fell more than 1.05 per cent.

Brent and WTI, the global oil price benchmarks, each dropped around two per cent, hitting the oil mega caps' shares.

Miners Glencore and Fresnillo all placed near the bottom of the FTSE 100 performance table. Prices for commodities such as copper have tumbled in recent months.

Mike Ashley's former FTSE 250-listed retail business Frasers Group led the day's gains on the FTSE 250 after it posted a profit jump despite a significant increase in cost. Its shares closed up nearly 27 per cent.

(c) 2022 City A.M., source Newspaper