London’s leading index closed down as investors digested a raft of economic data from the United States and China.
The FTSE 100 closed down 0.3% at 7,750.
On Tuesday, markets were contending with Chinese and US economic data that suggested the world’s two largest economies are showing signs of slowing.
Overnight, Chinese industrial production, retail sales and fixed asset investment for April were all weaker than expected. The data added to disappointing economic readings in recent months and provided further evidence China’s bounce back from the end of stringent COVID restrictions was fading.
Equity markets were dealt a major blow on Tuesday afternoon when US retail sales rose less than expected, sparking a sell-off in global equities.
The FTSE 100 had been positive before the release, and the S&P 500 was 0.3% weaker at the time of writing.
Many economists have been predicting a US recession, and today’s data corroborates their forecasts. Retail sales rose 0.4% vs 0.7% estimates, following disappointing US manufacturing data released yesterday. The US Empire manufacturing index for May fell to -31.3.
FTSE 100 movers
DDC was the FTSE 100 top riser after releasing solid 2023 numbers. Operating profit grew 11.3% as revenue jumped 25%.
Vodafone was down heavily after a stark warning from the new CEO the telecoms company must improve performance.
“Our performance has not been good enough,” Vodafone CEO Della Valle said. Vodafone shares were down over 8% on Tuesday.
Vodafone’s free cash flow fell in 2023, and revenue was static.
“Lacklustre performance has been something markets have come to expect from Vodafone of late, and full-year results didn’t buck the trend. Higher energy costs and continued weakness in Germany meant underlying cash profit came in below the recently downgraded company guidance,” said Matt Britzman, equity analyst at Hargreaves Lansdown.
Ocado finished 4% weaker after JP Morgan analysts cut Ocado’s price target to 450p yesterday.