FTSE 100 watch: Footsie off to downbeat start of year after China data

The UK benchmark index has started 2019 on the back foot as downbeat manufacturing data out of China put pressure on FTSE 100 miners. Next (LON:NXT) meanwhile is outperforming the market ahead of its Christmas trading update.

FTSE 100 heads south

As of 11:54 GMT, Britain’s blue-chip index had given up 47.72 points to stand 0.71 percent down at 6,680.41. Last year’s downbeat sentiment has continued in 2019 with disappointing factory data out of China this morning weighing on FTSE 100 mining shares. Glencore (LON:GLEN) is currently leading the sector lower, having given up 4.93 percent lower to 277.00p.

“Global stocks have had a troubled start to the new year after economic data from China fuels investors growth concerns and adds weight to worries of a global slowdown,” Aaran Fronda, financial writer at IG, commented in a note today. China’s numbers have also eclipsed positive manufacturing data at home.

“The higher print is seemingly due to firms building stocks at a near-record pace due to concerns about a no-deal Brexit,” said David Cheetham, analyst at online broker XTB, as quoted by Proactive Investors. “Likewise, order books were clearly buoyed by customers taking preemptive measures and preparing for supply disruptions in the event of the UK leaving the EU without a deal.”

Individual movers

In individual stock news, Next is outperforming the broader UK market ahead of its Christmas update tomorrow. The retailer’s shares are currently changing hands 3.43 percent higher at 4,128.00p.

At the other end of the spectrum has been Smith & Nephew (LON:SN), whose shares have been sold off as JPMorgan trimmed its rating and valuation, arguing that the stock’s risk-reward was now more balanced following last year’s outperformance. The artificial hips and knees maker’s stock is 1.95 percent down at 1,435.50p.

The FTSE 100 was 0.53 percent down at 6,692.36 points as of 12:43 GMT on Wednesday, 02 January 2019.