The FTSE 100 has fallen yet again off the back of data that implies that China’s economy is headed for a rapid slowdown.
The index slid by 67.78 points to 6,274.50.
Stocks that are heavily exposed to China were impacted the most
Meanwhile the People’s Republic has seen its consumer price index (CPI) rise by 1.6 percent in September compared to the same period a year ago, according to the China’s National Bureau of Statistics.
Because inflation has risen below many analysts’ forecasts (1.8 percent), it has left investors worrying about the strength of the Chinese economy and fearing deflationary measures being implemented by its government.
Stocks that are heavily exposed to China were impacted the most; with the multinational commodity trading and mining company Glencore and Standard Chartered bank seeing its share price fall by two to three percent.
Tony Cross, a market analyst at Trustnet Direct told Reuters: “Downbeat data from China – this time in the shape of weaker than expected inflation – is adding another layer of concern as to how the world’s second largest economy is managing the slowdown.
“As a result the base metal mining stocks once again are wearing more than their fair share of the losses,” he added.