Perry Gourley: Economy data keeps market on back foot

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The London market remained on the back foot amid concerns over disappointing economic data from China and the US.

More worrying economic data from China showing weak inflation in the world’s second biggest economy saw markets come under pressure, with falls for UK blue chips following overnight declines on Wall Street and in Asia.

The inflation figures came after gloomy Chinese trade data on Tuesday, with the FTSE 100 Index 72.67 points lower at 6,269.61 - having fallen more than 60 points at one stage.

Asia focused lender Standard Chartered was down 10.8p to 728p, after UBS cut its target price on the bank to 800p from 1,200p after saying the bank still needed “more comprehensive” balance sheet restructuring.

The UBS note comes after the bank last week, under new chief executive Bill Winters, confirmed it would axe 1,000 of its most senior managers.

Drinks giant Diageo was 33p, or almost 2 per cent, lower at 1.810p despite securing a £360.5 million deal to offload the bulk of its wine business - including Blossom Hill and Piat d’Or firm Percy Fox in the UK - to Australia’s Treasury Wine Estates.

Industrial testing firm Intertek, was up 65p to 2,577p after it agreed to buy US-based Professional Service Industries for £215m in cash.

NEW YORK: The Dow Jones Industrial Average fell 157.14 points, or 0.92 per cent, to close at 16,924.75. The Nasdaq Composite Index was also down 16.94 points, or 0.35 per cent, to end at 4,779.67. The Standard & Poor’s 500 Index dropped 10.93 points, or 0.55 per cent, at 1,992.76.

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