Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

FTSE rings in 2014 with small dip

FTSE rings in 2014 with small dip

The FTSE 100 started 2014 on a low after China’s official gauge of manufacturing activity declined for the first time in seven months.

The move, echoed across other major European indices, comes at the start of what market commentators generally expect to be another positive year for equities.

A late December rally helped the FTSE 100 top a gain of some 14% last year, though lagging the US S&P 500’s 29% leap higher.

Rises this year are expected to be more muted, even as investors continue to enjoy an economic recovery and cheap central bank money.

With some market traders still not back at their desks after the Christmas break, Thursday morning’s focus was on China’s manufacturing Purchasing Managers' Index (PMI), which dropped to 51 in December from 51.4 in November. The final HSBC/Markit manufacturing PMI slipped to a three-month low of 50.5 in December from 50.8 in November.

‘We expect the impact of tight liquidity conditions to become more pronounced entering H1 2014, commented Yao Wei of Societe Generale after recent high money market rates.

Asian markets had mostly slipped lower after the data, with Japan’s Nikkei closed until Monday.

Of London shares, mining companies were pegged back by the weaker Chinese data with Anglo American and Antofagasta among the biggest fallers.

Debenhams fell 0.7% to 72p after the high street retailer announced that finance director Simon Herrick had quit. The news comes two days after the group hit investors with a profit warning.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Navigating geopolitical risk with ETFs

Navigating geopolitical risk with ETFs

ETFGI’s Deborah Fuhr on how investors can use exchange-traded funds to position their portfolio.

Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Your Business: Cover Star Club

Profile: Barclays' former advisory boss on his move into property

Profile: Barclays' former advisory boss on his move into property

On paper, Rick Denton might have been expected to finish his career in banking

Wealth Manager on Twitter