LONDON, July 5 (Reuters) - Shares of London-listed real estate investment trusts and asset managers fell sharply on Tuesday after a spike in redemption requests led to Standard Life suspending trading on one of its UK property funds, stoking concerns about the prospects for commercial property in Britain following the EU referendum result.
Losses on the day were led by another of Standard Life’s listed real estate funds which slumped 14.2 percent in early trading. F&C Commercial Property Trust fell 7.4 percent while the Schroder Real Estate Investment Trust lost more than 10 percent.
Asset managers and insurers, already grappling with stubbornly high investor outflows and a dearth of investment income, were firmly in the red. Schroders fell 5.5 percent while Legal and General slumped 6.7 percent. Standard Life shares slid 4.8 percent.
Goldman Sachs, Barclays and Credit Suisse are among major banks forecasting a recession in the UK in the second half of 2016 or early 2017 with firms holding off on hiring and capital spending as a key reason.
A grim outlook for the UK economy and the hit to businesses from Brexit are the latest dents to investor confidence already frayed by worries over the Italian banking system, sluggish growth in Europe and China and choppy markets. (Reporting by Vikram Subhedar; Editing by Simon Jessop)