Hot Features
Premium
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
London open: Stocks fall as China economic growth slows
London stocks declined on Friday as China’s economic growth slowed further in the first quarter.
China’s gross domestic product rose 6.7% year-on-year in the first three months of the year, down from 6.8% growth the previous quarter, the National Bureau of Statistics said. The figure was in line with analysts’ estimates but marked the slowest quarterly growth for China since the height of the financial crisis in 2009.
Other Chinese data came in more positive. Retail sales jumped 10.3% in March, beating forecasts for a 10.2% increase. Industrial production climbed 6.8% in March compared to forecasts for a 6% gain.
“With the mixed morning for Chinese data leaving little real cause for concern or indeed celebration the FTSE failed to do much as the start of the session, opening flat at 6360,” said Connor Campbell, financial analyst at Spreadex.
“There isn’t really much for the UK index to work with this Friday (an oft-repeated refrain at the moment), meaning it will have to find inspiration from elsewhere (the oil price perhaps?) if it to build on its recent highs.”
While it will be quiet day of economic data in the UK, the US will see the release of the Empire manufacturing report at 1330 BST, industrial production figures at 1415 BST and the University of Michigan’s consumer confidence survey at 1500 BST.
Meanwhile, oil prices gained ahead of Sunday’s meeting in Doha between global producers to discuss a potential output freeze.
Brent crude rose 0.31% to $43.93 per barrel and West Texas Intermediate increased 0.33% to $41.64 per barrel at 0904 BST.
In company news, William Hill slumped after Goldman Sachs downgraded the stock to ‘neutral’ from ‘buy’ and cut the target to 380p from 460p.
Poundland was in the red after HSBC downgraded it to ‘hold’ from ‘buy’ and slashed its target to 160p from 290p after disappointingly slow growth in core trading with no recovery expected until the second half of 2017.
Man Group gained after Shore Capital argued that the company’s shares were significantly undervalued, following its first quarter update.
