FTSE 100 dips as miners react to Chinese data

The FTSE 100 underperformed European indices on Monday as London’s leading index was dragged by weaker miners following a raft of softer Chinese data overnight.

“Chinese stocks were lower as there was further evidence of the harm the country’s zero-Covid approach is doing to the economy in the short term,” said AJ Bell financial analyst, Danni Hewson.

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“This has obvious implications for global growth and, in particular commodities demand, and in this context it was no surprise to see shares in the big mining firms slip a little in early trading.”

Antofagasta slipped 3% as Rio Tinto, Glencore and Anglo American all gave up over 2%.

China took steps to improve economic conditions by cutting interest rates 10 basis points in an effort to stimulate a bounce back from Covid lockdowns, which may have contained some of the pessimism around commodities stocks on Monday.

UK property market

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The UK property market was again in focus as Rightmove added to recent comments by Nationwide around the slowing of the UK housing prices.

“In the UK, property website, Rightmove reported that asking prices in August fell by the most for two and a half years. August is a month that often sees a setback with buyers in holiday mode, but this year’s 1.3% August dip is the largest monthly drop for some while,” said Steve Clayton, fund manager at HL Select.

However, the easing in prices varies throughout the market with London and high-end properties seeing the biggest declines.

“Rightmove’s Tim Bannister said the dip was most pronounced in London and top-end properties and said indicators were pointing to a continuing cooling of the market,” said Clayton.

This would suggest that while some areas of the market are feeling the pinch, Rightmoves findings are consistent with other studies that still see strong demand among first time buyers and lower priced properties.

Housebuilding shares were largely unchanged as the slowing UK housing narrative has been building for many months and we are yet to see any meaningful deterioration.

RS Group

RS Group was the FTSE 100’s top riser as speculation around a takeover approach intensified following a report by the Times.

The Times reported an offer of 1,500p could be made, a significant premium to the current 1,146p RS Group share price.

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