Member Article

The FTSE slips as fears of a Chinese economic slowdown offset better than expected US employment data

The FTSE 100 closed down 20.79 points at 5196.84, underperforming leading indices in Europe and the United States. UK investors seeming failed to draw inspiration from improved economic data from the US, as weekly jobless claims fell by 37,000. In addition the US gross domestic product reading for the second quarter was marginally revised upwards thus lessening recession fears.

In Europe, the German parliament approved expanded powers for the Eurozone’s bailout fund, which for some was seen as an indication that policy makers are coming to terms with the scale of the sovereign debt issues that plague the continent.

On the upside, building materials firm Wolseley gained rose 99p to 1601p. The company has a sizable exposure to the US economy, and improved economic date from the other side of the Atlantic duly put the stock in focus.

Tate & Lyle closed up 18p at 630.5p after a reassuring trading update. The company stated that it expects to see steady volume growth for both Sucralose and starched based speciality ingredients.

Banks had a positive session with RBS rising 0.4p to 24.5p and Barclays gained 2.75p to 169.15p, as traders welcome developments in the German parliament.

The losers board was populated by companies with significant exposure to the Chinese economy. Recently, there has been concerns that economic growth in China is cooling rapidly. Burberry, the luxury clothing brand slumped 108p to 1201p. In a similar theme, resources stocks also suffered with Antofagasta losing 31.5p to 958.5p and Rio Tinto slipped 90.5p to 2966.5p.

This was posted in Bdaily's Members' News section by John Dance .