LONDON MARKETS: London Markets Decline As China Data Stokes Growth Fears
June 14 2019 - 6:27AM
Dow Jones News
By Dave Morris
London markets fell into negative territory as China industrial
production figures disappointed, fueling fears of a global economic
slowdown.
How did markets perform?
The U.K.'s FTSE 100 was at 7,352.2, down 0.2% following
Thursday's flat close.
The pound fell 0.2% to $1.2645, after shrinking 0.3%
Thursday.
What's moving the markets?
Economic data out of China
(http://www.marketwatch.com/story/chinas-economy-cools-further-in-may-2019-06-14-44851138)
set investors on a pessimistic path Friday, as U.S. tariffs
appeared to bite. Industrial production in May grew 5% year over
year, lower than the 5.5% consensus and the lowest growth figure in
the category in more than 17 years. Fixed asset investment was also
a disappointment, expanding 5.6% in the first five months of the
year versus 6% expected.
In the U.S., more than 600 companies including Walmart Inc. and
Target Corp. and 150 trade associations signed a letter urging
President Donald Trump's administration to resolve the trade
dispute with China
(http://www.marketwatch.com/story/us-companies-urge-trump-to-find-solution-to-end-trade-war-2019-06-13)
to avoid damaging the national economy.
Former U.K. foreign secretary Boris Johnson was the clear winner
(http://www.marketwatch.com/story/brexit-brief-boris-johnson-tops-tory-leadership-race-after-first-round-vote-2019-06-14)
in Thursday's first round of voting in the Conservative party's
leadership contest, with 114 votes from MPs. Current foreign
secretary Jeremy Hunt came second with 43 votes, giving Johnson a
significant lead. The next round takes place June 18.
Which stocks are active?
Signs of weaker economic growth hit European financial
companies' shares, as lower interest rates are expected to restrain
lenders' profitability. HSBC Holdings PLC (HSBA.LN) shares fell
0.8%, while Lloyds Banking Group PLC was down 0.5% and Barclays
declined 0.4%.
(END) Dow Jones Newswires
June 14, 2019 06:12 ET (10:12 GMT)
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