Beijing figures deliver bad day for FTSE 100

Commodity stocks pulled the FTSE 100 lower yesterday after disappointing manufacturing data from Beijing triggered fears over the health of the Chinese economy.

London’s blue-chip index closed down 32.47 points, or 0.46%, at 7,074.73, while Germany’s DAX rose 0.29% and France’s CAC grew 0.4%.

David Madden, market analyst at CMC Markets, said: “The FTSE 100 is firmly in the red as a broad-based sell-off in consumer, energy and mining stocks has weighed on the British index. China’s manufacturing PMI (Purchasing Managers’ Index) report fell further into contraction territory to 49.2 – its lowest reading since early 2016.

“The second-largest economy in the world is a major importer of commodities and that is a large factor in the FTSE 100’s under-performance.”

Meanwhile the pound, which has been a barometer of Brexit since the 2016 referendum, was weaker due to concerns over the PM’s ability to deliver a deal that will appeal to her Cabinet with just a month to go before Britain’s scheduled departure from the EU on March 29.

Sterling was down 0.18% against the US dollar at 1.328 and declined 0.28% versus the euro at 1.167 at the London market close. Brent crude, the international benchmark, traded up 0.18% at 66.38 US dollars (£49.96).

The biggest risers on the FTSE 100 were Rentokil up 22p to 351p, St James’s Place up 31.2p to 972.4p, NMC Health up 86p to 2,704p, and ITV up 3.85p to 131.1p. Biggest fallers were easyJet down 84p to 1,227.5p, Mondi down 116.5p to 1,728.5p, and Wood Group down 18.4p to 520.4p.