By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- The U.K.'s FTSE 100 index moved sharply
lower on Friday amid a global stock-market selloff spurred by
worries over slower growth in China and renewed financial
volatility in Latin America.
The benchmark index slid 1% to 6,704.29, setting it on track for
the lowest close in two weeks.
Shares of Aberdeen Asset Management PLC led decliners, off 5.7%,
after Morgan Stanley cut the company to underweight from equal
weight, with the analysts saying they continue to avoid asset
managers that are skewed toward emerging markets.
"Deteriorating fund performance compounds challenge EM
fundamentals, increasing the risk of negative revisions and further
multiple de-rating at [Aberdeen Asset Management]," they said.
Emerging markets were also on the spotlight in the broader
market on Friday, after currencies in countries such as Argentina,
Turkey and South Africa plunged, in a global flight to safe havens
like the yen and U.S. Treasurys. On Thursday, emerging-markets
stocks hit a four month low, after weaker-than-expected Chinese
data spurred worries about growth in the global economy.
Resource firms and banks, which are sensitive to risk appetite
in the markets, were among the biggest decliners on Friday. Among
miners, shares of Rio Tinto PLC (RIO) lost 1.4% and Glencore
Xstrata PLC (GLCNF) dropped 1%.
In the banking sector, heavyweight HSBC Holdings PLC (HSBC) gave
up 1.4%, Barclays PLC (BCS) fell 1.1% and Royal Bank of Scotland
Group PLC (RBS) erased 1.3%.
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