Sector movers: Miners/metals sold off on economic woes

18th Aug 2011 14:52

A Morgan Stanley report on economic growth weighed on sentiment in global markets on Thursday, with every sector in London reporting losses. Worst of all were the industrial metals and mining stocks, which were the poorest performers in the afternoon.The global recovery path is now more "bumpy, below-par and brittle" than first thought, according to Morgan Stanley, which has cut its global growth forecasts for 2011. The US investment bank warned that the economic powerhouses, the US and the Eurozone, are "hovering dangerously close to a recession - defined as two consecutive quarters of contraction - over the next 6-12 months", as its cut its estimates for 2011 gross domestic product growth from 4.2% to 3.9%. Morgan Stanley also forecasts the global economy to grow by 3.8% next year, down from previous estimates of a 4.5% expansion. Talvivaara Mining, Ferrexpo and African Copper were among the heaviest fallers as investors questioned what demand would be like if the global economy slipped back into a recession.Shares in Talvivaara fell sharply on Wednesday after the Finnish miner said sales in the second quarter were held back by a maintenance stoppage and a decrease in the nickel price.BCTop performing sectors so far todayBottom performing sectors so far todayIndustrial Metals & Mining 5,364.12 -7.67%Technology Hardware & Equipment 610.20 -6.59%Personal Goods 20,339.55 -6.21%Banks 3,377.86 -6.10%Industrial Engineering 6,277.43 -5.77%