Worries about the Chinese economy have piled on the pressure for stocks, taking the FTSE 100 to a new two-month low, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Stocks head lower again
“Markets have not been able to find their footing this afternoon, and as well as the US debt ceiling, are also grappling with renewed signs of a slowdown in China. The boost from the reopening of China’s economy seems to have faded altogether, and this has meant that recession fears are front and centre once more. The debt ceiling now seems to be mostly a procedural problem, but until it is resolved markets seem determined to remain on edge.”
Fresh two-month low for the FTSE 100
“First it was the stronger dollar hurting commodity prices. But now the FTSE 100 has the problem of slowing global demand, most notably in China. What started out as mainly a commodity rout this morning has broadened out to the rest of the index. A few more days like this will find the FTSE 100 back at the December 2022 and March 2023 lows around 7300, wiping out the gains made since 1 January.”
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