LONDON MARKETS: British Stocks Struggle As Economic Concerns Reignite
August 14 2019 - 6:20AM
Dow Jones News
By Steve Goldstein, MarketWatch
British stocks languished on Wednesday, with worries about the
health of the global economy returning to pressure equities.
The U.K. FTSE 100 fell 0.33% to 7227.23 and the mid-cap FTSE 250
dropped 0.3% to 18947.80.
Europe stocks also were lower
(http://www.marketwatch.com/story/europe-stocks-trade-lower-as-german-economy-contracts-2019-08-14),
as were U.S. stock futures .
What's moving markets
The state of the global economy returned to focus a day after
relief from the U.S. government delaying tariffs on Chinese
consumer products.
U.K. consumer prices in July rose to 2.1% year-over-year from 2%
in June, and above the Factset compiled consensus economist
forecast of 1.9% growth, after a jump in computer game prices. "The
medium-term outlook for above-target inflation suggests that the
[Bank of England's] focus will return to rate hikes in 2020 if, as
we expect, a no-deal Brexit is avoided this year," said Samuel
Tombs, chief U.K. economist for Pantheon Macroeconomics.
Elsewhere, Germany's economy shrank by 0.1% in the second
quarter
(http://www.marketwatch.com/story/german-economy-shrinks-amid-trade-concerns-auto-woes-2019-08-14),
according to data released by Destatis, the statistics agency. The
economy in the eurozone as a whole rose 0.2%, Eurostat reported,
with Spain's economy rising 0.5%, France's economy improving by
0.2% and Italy's economy staying flat. China meanwhile reported the
softest industrial production growth in 17 years.
Focus stocks
Admiral Group (ADM.LN) shares advanced 5% as the insurer
reported a 4% rise in first-half pretax profit and a increase in
its dividend.
Balfour Beatty (BBY.LN) shares rose 9% as the U.K. engineering
group reported a rise in first-half pretax profit, revenue and
orders.
Sports Direct (SPD.LN) tumbled 11% after announcing that its
auditor, Grant Thornton, will step down on Sept. 11, when the
troubled sporting-goods retailer holds its annual shareholder
meeting. The Financial Times reported the retailer is in
discussions with the U.K. government over its auditor difficulties,
since no other accountant has so far been willing to step in.
(END) Dow Jones Newswires
August 14, 2019 06:05 ET (10:05 GMT)
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