LONDON MARKETS: FTSE 100 Drops On China Gloom, Brexit-vote Jitters
January 14 2019 - 6:48AM
Dow Jones News
By Emily Horton
Oil names, miners fall after weak China trade data
London markets fell on Monday, a day ahead of the crucial U.K.
parliamentary vote over Prime Minister Theresa May's divisive
agreement for Britain's exit from the European Union.
Weaker-than-expected Chinese trade data added to investor
worries that China's economy is slowing, dragging on perceived
risker asset such as stocks and oil.
How are markets trading?
The U.K.'s FTSE 100 fell 1% to 6,851.34, after finishing up 1.2%
on Friday.
The British pound was indecisive on Monday, as it struggled to
make gains. The pound was trading at $1.2839 from $1.2830 seen late
Friday in New York.
What is driving the markets?
(http://www.marketwatch.com/story/chinas-trade-growth-slowed-in-2018-as-global-demand-weakened-2019-01-13)U.K.
Parliament will vote on Prime Minister Theresa May's divisive
agreement for Brexit on Tuesday, and that has helped put U.K.
markets on edge despite last week's gains.
May will address MPs on Monday and warn them that v
(http://www.marketwatch.com/story/brexit-brief-uk-prime-minister-makes-last-ditch-pleas-to-save-eu-deal-2019-01-14)oting
against her deal could ultimately stop the U.K. from leaving the
European Union
(http://www.marketwatch.com/story/brexit-brief-uk-prime-minister-makes-last-ditch-pleas-to-save-eu-deal-2019-01-14)
(http://www.marketwatch.com/story/brexit-brief-uk-prime-minister-makes-last-ditch-pleas-to-save-eu-deal-2019-01-14).
It is widely expected that the Prime Minister's deal will be
rejected reject tomorrow, as politicians on both sides of the
Brexit debate continue to oppose to its central tenets.
Weaker-than-expected Chinese trade data
(http://www.marketwatch.com/story/chinas-trade-growth-slowed-in-2018-as-global-demand-weakened-2019-01-13)
hit investor appetite for perceived riskier assets, such as stocks,
and sparked fresh worries over a global economic slowdown on
Monday. China's trade surplus with the U.S. also rose to $323.32
billion in 2018
(http://www.marketwatch.com/story/chinas-trade-surplus-with-us-hit-record-in-2018-2019-01-13),
the widest ever as the two nations are in talks to resolve trade
disputes.
What stocks are active?
Britain's Burberry PLC (BRBY.LN) rose 0.5%, after Bank of
America Merrill Lynch reportedly
(https://www.cnbc.com/2019/01/14/europe-markets-export-slump-in-china-rattles-global-stocks.html)
raised its stock recommendation to neutral from underperform.
Online supermarket Ocado Group PLC (OCDO.LN) gained almost 1.2%.
Meanwhile, the Royal Bank of Scotland Group PLC (RBS.LN) and London
Stock Exchange Group (LSE.LN) both gained around 2%.
Commodity-related shares were under pressure, with weak China
data hitting oil prices and conversely shares of related companies,
with heavily-weighed Royal Dutch Shell PLC (RDSA.LN) (RDSA.LN) down
1% and BP PLC (BP.LN) (BP.LN) dropped 0.7%.
Mining shares fell, given their sensitivity to data that
heightens worries about a slowdown in China, a big buyer of
resources. Rio Tinto PLC (RIO.LN) (RIO.LN) eased 0.8%. Glencore PLC
(GLEN.LN) (GLEN.LN) dropped 1.2% and Antofagasta PLC (ANTO.LN) lost
over 2%.
Paddy Power Betfair PLC topped the FTSE 100 fallers, losing just
under 3%, while retailer Next PLC (NXT.LN) followed close behind,
dropping just under 3%.
(END) Dow Jones Newswires
January 14, 2019 06:33 ET (11:33 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Aug 2024 to Sep 2024
FTSE 100
Index Chart
From Sep 2023 to Sep 2024