LONDON (ShareCast) - Every sector on the London stock market was under selling pressure on Wednesday as concerns about US economic growth and geopolitical worries sparked a sell-off across the board.

Data released this afternoon showed that the world's largest economy shrunk at an annualised rate of 2.9% in the first quarter, much worse than the previous estimate showing a 1% contraction. Other figures showed that US durable goods unexpectedly fell last month.

Meanwhile, ongoing fighting in Iraq was also dampening sentiment among investors on reports that Sunni militants attacked one of the country's largest air bases and seized control of a number of oilfields.

The technology, hardware and equipment sector in the UK was the worst performer today with Imagination Technologies a standout faller after a solid post-results jump in the shares yesterday.

The chipmaker impressed investors with an 13% jump in annual revenues and a less-than-expected 28% decline in profits.

Analysts at Credit Suisse hiked their target price on the stock today from 130p to 175p but said: "Given our key concern around [the] increased level of threat from ARM in both graphics and networking market, we maintain [an] 'underperform' rating."

The stock was down 5.1% at 238.6p by 14:47.

Rival chip group ARM was also trading 2.3% lower, along with tech peers CSR, Pace and Nanoco Group.


Top performing sectors so far today

Bottom performing sectors so far today
Technology Hardware & Equipment 1,061.59 -2.46%
Oil Equipment, Services & Distribution 24,176.91 -2.19%
Construction & Materials 4,081.59 -2.13%
Food Producers & Processors 7,810.69 -1.71%
Industrial Engineering 10,124.09 -1.69%

BC

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