FTSE 100 extends losses on global economic gloom, Barratt warning

UK's FTSE 100 extended declines on Wednesday as recent soft economic data from China and Europe continued to weigh on global sentiment, while shares of Barratt Developments fell after the homebuilder warned of a tough market environment, reports Reuters.
The exporter-heavy FTSE 100 index dropped 0.7 per cent by 0812 GMT, extending declines for the third consecutive session, while the domestically focussed FTSE 250 index declined 0.5 per cent.
Global markets also extended losses for a second day as faltering growth in China and Europe heightened concerns about the global economic momentum.
Shares of Barratt fell 1.9 per cent after Britain's largest housebuilder posted a drop in annual profit and forecast difficult trading conditions over the coming months. The broader housebuilders index declined 1.4 per cent.
"Barratt has admitted that things will remain tough over the coming months, but with rates yet to peak and the lag effect of existing rate rises ... it may be even longer before we see the housing market rebound," said Josh Warner, market analyst, StoneX.
British construction firms suffered a sharp drop in orders in August, adding to concerns about a slowing economy amid rising interest rates, data showed.
UK stocks have underperformed their European peers so far this year as sticky inflation and the Bank of England's aggressive interest rate hikes weighed on the economy.
Meanwhile, Bridgepoint shares rose 2.5 per cent after the alternative asset fund manager said it will buy Energy Capital Partners for an initial 835 million pounds ($1.05 billion), including debt.