Continued contraction of manufacturing in China
City Index September 20, 2012 3:30 PM
<p>- The continued contraction of manufacturing in China has lead to worries over demand for commodities leading miners to drag the FTSE down 47 points […]</p>
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- The continued contraction of manufacturing in China has lead to worries over demand for commodities leading miners to drag the FTSE down 47 points today to 5847. It’s not just miner’s worried by the Chinese slowdown as its potential effect on eurozone exporters has brought the CAC and DAX down 26 and 40 points respectively to 3502 and 7350.
- Wall Street – which has not yet been able to react to this news – ended slightly up yesterday at 13577 thanks to positive signs in their housing market. Don’t expect this to hold when the markets open at 2.30pm.
- As mentioned it’s the miners who’re struggling today with the likes of Evraz, Vedanta Resources, Anglo American, Kazakhmys and Fresnillo dominating the loser board all down over 3% in early trading.
- British online supermarket Ocado is also down 5% as they announced sales growth slowed in Q3 and competition from less centralised grocers, including Waitrose itself, heats up. On the flipside BskyB have managed to pull up 1% in this bearish market as Ofcom clears them of links to the hacking scandal and concludes that they are ‘fit and proper’ to hold a broadcasting license.
- Finally, we’ve got quite a bit of data out today we’ve got UK retail sales at 9.30am, weekly US unemployment claims at 1.30pm, US philly fed manufacting index at 3pm and Mervyn King speaking on a channel 4 news interview at 7pm.
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