European shares dip after weak China growth figures

The pan-European STOXX 600 fell 0.19%, with most sectors and major bourses in the red while London’s FTSE 250 Index closed the day’s session 0.01% lower.

Shares in Europe dipped on Monday after latest economic numbers released from China showed the world’s second-largest economy growing its weakest in 28 years for last year.

The pan-European STOXX 600 fell 0.19% or 0.69 points, at 356.36, with most sectors and major bourses in the red while London’s FTSE 250 Index closed the day’s session 0.01% or 1.64 points lower, at 18,762.83.

Germany’s exporter-heavy DAX Performance Index dropped 0.62% or 69.34 points, at 11,136.20 while the French CAC 40 lost around 8 points, at 4,867.

The FTSE 100 bucked the trend to inch up slightly at the close, up by 0.03% or 2.26 points, at 6,970.59.

Telecommunication shares slumped for the first trading day of the week, dragged down by France’s Orange and Italy’s Telecom Italia. Telecom Italia’s share price fell after news of its plan to spin off its landline network was rejected by regulators while Orange had disputed claims that it was bidding for its competitor which sent the stock lower.

Meanwhile, online food delivery company Just Eat’s shares also fell but managed to pare back its losses by the close. The firm’s CEO was said to have stepped down just 16 months after joining the company.

China’s weak growth data a drag to markets as investors worry

Last year, China’s economy grew by 6.6%, matching estimates, but the annual growth was still the weakest since 1990. For the fourth quarter, growth came in at the slowest pace since the global financial crisis.

The weakness in the Chinese economy comes at a problematic time as the country is facing a trade battle with the United States (US).

President Xi Jinping’s top economic advisor Liu He will be heading to the US around the end of this month for another round of trade talks between the two nations.

China needs to resolve the trade talks more than the US right now to boost its sluggish growth, fallen exports, and weakened factory sentiment.

Brexit woes continue

UK prime minister Theresa continued to reject calls for a second referendum and unveiled her ‘Brexit Plan B’ on Monday, which to many observers looked like the original plan.

The new plan shows a restatement of Mrs May’s Plan A with some reassurances to indicate that the Northern Ireland issue will be resolved, at some point.

The country has 67 more days to go until Britain is due to leave the EU.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Trading around Brexit

Find out how the UK’s exit from the EU continues to affect traders, and discover:

  • The unique opportunities in a ‘hard’ and ‘soft’ Brexit
  • The markets you should be watching
  • Everything that’s happened so far

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.