UK stock markets experienced a decline on Monday as concerns over the health of China’s economy resurfaced. One of China’s largest property developers, Country Garden, suspended trading in some of its mainland bonds, raising fears about the real estate sector in the country. This led to losses for property stocks and globally-focused mining companies. The FTSE 100 in London closed 0.23% lower at 7,507.15.
In contrast, other European markets performed better, with Germany’s Dax rising by 0.46% and France’s Cac up 0.12%. In the US, the S&P 500 started trading positively, up 0.5%, while the Dow Jones rose 0.15%. The pound remained stable against the US dollar at 1.269, and gained about 0.2% against the euro, reaching 1.162.
Upcoming releases of important economic data from the Office for National Statistics include labor market data on Tuesday and the latest inflation figures on Wednesday.
Chief market analyst for CMC Markets UK, Michael Hewson, noted that European markets struggled to gain ground after two weeks of losses. The FTSE 100, in particular, was impacted by weakness in sectors such as basic resources, energy, and real estate, with concerns over Chinese demand affecting mining and energy stocks.
In company news, Lok’nStore saw a slight increase in share price after reporting strong demand for its self-storage services, despite raising prices last year. Plus500, an online trading business, experienced a decline in sales and earnings, but managed to rebound slightly after announcing an increase in shareholder payouts. Budget retailer B&M surged to the top of the FTSE 100 following reports that collapsed rival Wilko had until Wednesday to receive suitable rescue bids.
