LONDON: After a bright start, leading shares are heading lower again in the wake of disappointing UK retail sales and eurozone economic data.
The FTSE 100 has fallen 18.13 points to 7010.11, with a surprise drop in retail sales in March and a slowdown in German growth spooking investors. Germany’s Dax is currently down more than 1%. Poor French figures are adding to the pressure.
Earlier Chinese factory activity as measured by the HSBC/Markit Purchasing Managers’ Index fell to 49.2 in April, below the 50-point level that shows whether the sector expanded or contracted. But this prompted suggestions the country could introduce new stimulus measures to support its flagging economy.
Worries about the situation in Greece also continue to unsettle markets, with time running out for the country to resolve its cash crisis. The UK election in two weeks is also on traders minds.
Among the risers United Utilities has added 12.5p to 986p as Citigroup raised its price target from 900p to 950p, and as investors sought havens for their cash. Severn Trent is up 17p to £21.68.Tesco recovered 2.4p to 225.05p after Wednesday’s record £6.4bn loss.
A number of companies went ex-dividend, including Legal & General, 11p lower at 266.2p, Old Mutual, down 9.1p at 228.4p, and Glencore, off 10.65p at 291.60p.
