Royal Mail shares were hit after the market became jittery about a profit warning by delivery giant FedEx.
The US company, widely regarded as a bellwether for the global economy, withdrew full-year results guidance after reporting weaker-than-expected volumes internationally as well as in its home market.
FedEx shares slumped 16% after Wall Street’s closing bell on Thursday and Royal Mail dived more than 10% or 25.7p to 224.2p, leaving the FTSE 250-listed stock at its lowest level since September 2020.
Russ Mould, investment director at AJ Bell, said: “Last night’s profit warning from FedEx won’t have helped sentiment.
“As another stock which is a classic bellwether for economic activity, the delivery group said it expected business to weaken further, which might explain why Royal Mail’s shares dived 10% this morning as investors fear it too has weak near-term prospects.”