Member Article

Markets lower on weak economic data

Stocks were under pressure today as an overnight preliminary Purchasing Managers Index compiled by HSBC indicated that manufacturing activity had contacted for its 11thstraight month in September. The data was sufficient to dent optimism in risk assets that have recently had a decent run, with shares in Asia and risk currencies such as the Australian dollar under pressure.

Europe echoed these concerns at the open, with poor domestic PMI data also hurting sentiment. Composite Eurozone Services PMI came in at 46 for September, below the previous month and economist forecasts, representing its lowest level since 2009.

The best performing stock on the FTSE 100 was Imperial Tobacco, one of the world’s biggest tobacco companies and owner of Drum and Rizla, reacting well to a trading statement. It outlined revenue growth of around 4% in the current year, and failed to deliver any downside surprises that were feared preannouncement. The shares rose 2.7% to close at 2399p. Given the aforementioned data pointing to global economic weakness, it was unsurprising that mining stocks populated the bottom of the FTSE100 leader board, some of which lost around 5% in value. The FTSE 100 reached a low of around 5820 a few hours before the close, hovered stage a rally into the closing bell to finish the day at 5855, a loss of around 0.6%.

This was posted in Bdaily's Members' News section by James .