Weakening Chinese economy weighs on London markets

A weakening Chinese economy weighed on London markets this morning as investor sentiment soured on concerns the global supply chain crisis will last longer than expected.

The capital’s premier FTSE 100 edged down 0.12 per cent to 7,226.20 points during the opening session.

China’s economy was dragged down by energy shortages, soaring commodity prices and supply chain bottlenecks, indicating headwinds looming over the global economy could bite for longer than expected.

China’s economy grew 4.9 per cent, below analysts’ expectations and the slowest rate of expansion for a year.

Russ Mould, investment director at AJ Bell, said: “The FTSE 100 dipped on Monday, losing some of its recent momentum as China’s GDP figures for the third quarter disappointed.”

“The problems facing the Chinese economy are familiar ones of supply chain issues and power shortages.”

Burberry, the luxury fashion retailer that heavily relies on China for sales, was one of the worst performers on the premier index this morning, dipping 1.58 per cent.

Real estate stocks also weighed on the FTSE 100 this morning, despite data from Rightmove published this morning showing house prices are growing in every region of the UK.

Barratt Developments and British Land were down more than 0.85 per cent.

Playtech, the FTSE 250 listed gambling firm, was the bright spot on London markets this morning, rocketing 56.22 per cent after news broke Australian firm Aristocrat was buying it for $2.89bn.

London’s poor performance bled into the continent. Germany’s Dax 30 was 0.50 per cent lower this morning, while the pan-European Stoxx 600 slipped 0.39 per cent.