China and Eurozone Woes Drag Down FTSE
November 21st, 2014
Citywire have today published an article on the ongoing events regarding China’s factory sector and the eurozone economy.
“Stalling growth in China’s factory sector and further worrying signs about the state of the eurozone economy has weighed on the FTSE 100, which fell 30 points, or 0.4%, to 6,667.
Mining stocks were among the worst hit on news that purchasing managers’ index (PMI) figures for Chinese manufacturing fell to a six-month low of 50 in November, indicating no growth, and below the level investors had been expecting. China is the world’s biggest metals consumer.
The eurozone meanwhile added to investors’ woes as PMI data for the region fell to a 16-month low of 51.4 in November. Any reading above 50 indicates expansion.
Contributing to the fall was Germany, which saw manufacturing and services activity drop. Germany’s composite PMI figure across all sectors dropped to 52.1, down from 53.9 in October, and a 16-month low.
‘The weak and disappointing November PMI surveys indicate that the eurozone continues to struggle to develop even modest growth momentum despite a markedly weaker euro and very low oil prices,’ said Howard Archer, chief UK and European economist at IHS Global Insight.”
To read more, please click here to visit the article on citywire.