Market overview: Weak factory data sends FTSE 100 into the red
1630 (close): The FTSE 100 has finished down 3.03% to 6,058.54 points as investors sifted through disappointing manufacturing data in China, Europe, the UK and the US. Two separate PMI reports showed a contraction in Chinese manufacturing, while the UK's PMI growth slowed, Eurozone PMI was revised lower and US PMI grew at the slowest pace in more than two years. Concerns on China, fuelled by poor factory data, pushed mining stocks and oil prices lower. The biggest fallers among companies were Glencore, Anglo American and BHP Billiton.
FTSE 100
7,877.05
17:14 18/04/24
FTSE 350
4,334.00
17:14 18/04/24
FTSE All-Share
4,290.02
16:54 18/04/24
Pharmaceuticals & Biotechnology
21,132.77
17:14 18/04/24
Shire Plc
4,690.00p
16:39 08/01/19
1613: Greece's creditors reportedly may delay the first bailout review by about a month until November. Agency MNI said creditors are concerned that the upcoming election may derail the economy which may delay talks of debt relief.
1500: US construction spending in July hit its highest level since May 2008, according to the Commerce Department. Outlays for construction projects rose 0.7% in July to a seasonally adjusted rate of $1.08trn, the highest level since May 2008 and in line with expectations.
1445: US manufacturers in August grew at their slowest pace in over two years, figures reveal. The Institute for Supply Management revealed its manufacturing index declined from 52.7% to 51.1% in August, falling below the 52.2% reading analysts had expected.
1210: International Monetary Fund Christine Lagarde has warned emerging economies to prepare for the impact of China's slowdown. Speaking in Indonesia today, she said the international economy was weaker than the IMF had estimated and that the recent spike in "global risk aversion and financial market volatility” could affect growth in Asia. Lagarde said: "As the Chinese economy is adjusting to a new growth model, growth is slowing—but not sharply, and not unexpectedly. The transition to a more market-based economy and the unwinding of risks built up in recent years is complex and could well be somewhat bumpy."
1115: Unemployment in the Eurozone fell to its lowest level since February 2012 in July, according to figures released on Tuesday by Destatis. The unemployment rate dropped to 10.9% from 11.1% in June, which was better than the unchanged reading economists had been expecting.
1000: UK mortgage approvals edged higher in July, reaching their highest level since February. According to the Bank of England, mortgage approvals for house purchases rose from 67,069 in June to 68,764 in July, a figure that exceeded analysts’ expectations, while net mortgage lending jumped by 2.709bn, the biggest increase since July 2008.
0930: Markit’s PMI on UK manufacturing fell from 51.9 to 51.5 in August, “well below” its average for the past two-and-a-half years. A persistent weakness in exports remains a crucial issue for manufacturing in the UK, said Howard Archer from IHS Global Insight. "The survey indicates that UK manufacturers are continuing to find life very challenging as they are being held back, particularly by weak foreign orders," he said.
0900: Stocks have started the morning lower despite in-line readings on China´s manufacturing sector from two surveys. Investors may have opted to focus on the Caixin services sector purchasing managers´ index for August, which fell to a reading of 51.5 from 53.8 in the month before. Mining stocks were doing worst in the early going, alongside stock in Shire on the back of negative newsflow over the weekend. Manufacturing sector PMI´s were due out later in the session in the UK, Eurozone and Stateside. FTSE 100 down 58.11 points to 6,189.29.