China data weighs on risk appetite, FTSE down 1.25 pct

Britain's top stock index started the second half of the year with a dive. Concerns about how slowing growth in China will impact international growth sent risk sensitive mining and banking stocks down. By 13:30 BST the FTSE 100 traded down by 1.25 per cent or 58.8 points, hovering around the 4,850 mark.

Chris Bradshaw
shareprices.com - Thursday, July 01, 2010

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A darkening demand outlook is sending metal prices down. Mining stocks are taking a pounding, with Xstrata, Lonmin and Eurasian Natural Resources down between 2.2 and 2.9 per cent.

Banks are doing no better, by mid-day Barclays lost 3.5 per cent, Investec 3.3 per cent, Standard Chartered 2.3 per cent and HSBC Holdings 1.6 per cent. BP however is up 3.9 per cent on talk about a takeover from ExxonMobil.

The global economy is showing signs of slowing growth. In China the pace of manufacturing growth slowed in June as the Chinese government's steps to curb lending is slowing economic activity. Concerns about Eurozone stability are not helping and analysts say that upcoming earnings reports are likely to look less than rosy.

Retail stocks are moving down today as investors are concerned about how government austerity measures will affect demand. Next is down by 1.8 per cent so far, while Marks & Spencer is showing losses of 1.5 per cent.

Bucking the trend however is Debenhams. The mid-cap stock has moved up by 5.5 per cent or 2.85p reaching 55.85p by mid-day as investors approved of the consistent like-for-like sales figures the retailer reported, this despite the economic climate.

 

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