EUROPE MARKETS: FTSE 100 Falls After Slowdown Fears Reignite; GVC Holdings Tumble 17%
March 08 2019 - 11:13AM
Dow Jones News
By Emily Horton
Weak China data pummels oil prices, hitting BP, others
(http://www.marketwatch.com/story/volkswagen-to-cut-5000-jobs-by-2023-report-2019-03-08)London's
stock market fell on Friday, after disappointing data from Germany,
China and the U.S. reaffirmed fears of a global economic slowdown,
hitting oil majors in particular as crude prices plunged. .
GVC Holdings PLC tumbled 17% after top executives sold sizable
stakes in the gambling group.
How are markets performing?
The U.K.'s FTSE 100 dropped 0.6% to 7,111.75, after finishing
down 0.5% on Thursday.
The pound slid anew, dropping to $1.3018 from $1.3083 late on
Thursday evening in New York. Losses for the pound helped stem some
of the slide for the FTSE 100, as a weak currency benefits
exporters in the index.
What's driving the markets?
Weak economic data from China, Germany and the U.S. cast a dark
cloud over global markets on Friday. China's exports fell almost
21% in February
(http://www.marketwatch.com/story/china-exports-plummeted-20-in-february-2019-03-07),
while German factory data
(http://www.marketwatch.com/story/german-manufacturing-orders-plunge-in-january-2019-03-08)revealed
a 2.6% decline in January. Later, U.S. jobs data revealed the
weakest growth in 17 months
(http://www.marketwatch.com/story/us-adds-meager-20000-jobs-in-february-to-mark-smallest-increase-in-17-months-2019-03-08).
This all comes a day after the European Central Bank cut its
growth forecast for the eurozone and announced new stimulus
measures for the lagging economy.
Don't miss:Beware the 'Japanification' of Europe, warn ING
economists
(http://www.marketwatch.com/story/beware-the-japanification-of-europe-warn-ing-economists-2019-03-06)
In the U.K., Prime Minister Theresa May said that Britain might
never leave the EU if Parliament didn't support her deal. Last
month, lawmakers agreed in a non-binding vote to avoid a no-deal
Brexit. May will have a last stab at asking the European Union for
a better Brexit deal, ahead of the presumably final vote in the
British Parliament next week on March 12.
Brexit Brief:Theresa May makes final deal pitches ahead of
crunch vote
(http://www.marketwatch.com/story/brexit-brief-theresa-may-heads-to-brussels-for-final-deal-pitch-2019-03-08)
What stocks were active?
GVC Holdings PLC (GVC.LN) slid 12% after top executives sold
substantial stakes
(https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/GVC/13994852.html)
in the gambling group.
"There is a widely used phrase in investing that says 'follow
the money'. In GVC's case, shareholders are following this advice
to the letter as the gambling company's share price dives amid news
of hefty share sales by directors," Russ Mould, investment director
at AJ Bell said in a client note.
"Chief executive Kenneth Alexander has sold GBP13.7m worth of
stock and Chairman Lee Feldman has dumped nearly GBP6m of his
personal holding. Investors are clearly spooked by this news and
are also selling down," Mould continued.
In sympathy, fellow gambling company Paddy Power Betfair PLC
eased 0.8%.
Heavyweight oil majors logged sharp losses, tracking a plunge in
the price of oil
(http://www.marketwatch.com/story/oil-slumps-as-china-data-underline-global-growth-worries-2019-03-08)
(http://www.marketwatch.com/story/oil-slumps-as-china-data-underline-global-growth-worries-2019-03-08),
which was weighed by global growth worries. Royal Dutch Shell PLC
(RDSA.LN) (RDSA.LN) and BP PLC (BP.LN) (BP.LN)(BP.LN) fell over 1%
each.
Heavyweight miner Antofagasta PLC (ANTO.LN) tumbled 4%, while
Fresnillo PLC (FRES.LN) added 2.8%.
(END) Dow Jones Newswires
March 08, 2019 10:58 ET (15:58 GMT)
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