Europe share marts slide in thin trading

European stock markets slipped lower in thin trading yesterday as poor Chinese trade data raised concern about slowing economic growth in the Asian powerhouse nation. London’s FTSE 100 index of top companies dipped by a slender 0.08% to close at 5,847.11 points, Frankfurt’s Dax 30 edged down 0.29% to 6,944.56 and the Paris CAC 40 fell 0.61% at 3,435.62 points. In Madrid, the Ibex 35 index lost 0.88% to 7,047.7 points, while in Milan the FTSE Mib was down by 0.72% at 14,549 points. In foreign exchange deals, the European single currency slipped to $1.2294 from $1.2301 in New York late Thursday. Analyst Craig Erlam at the Alpari brokerage highlighted a lack of market-moving news this week after European Central Bank President Mario Draghi had hinted at a resumption of the bank’s controversial bond-buying programme. “The markets haven’t reacted well to this, with the rally fading in the first half of the week,” Erlam noted. “Over the last 24 hours, we’ve actually seen a move away from stocks and the euro, with investors not happy with the lack of urgency taken by the eurozone.” Investor sentiment was partly boosted Thursday as Chinese inflation data lifted hopes that Beijing would loosen monetary policy further, while US trade figures turned out to be better than expected. But markets mostly fell yesterday as weak Chinese trade data reinforced concerns of a slowdown in the world’s number two economy, while profit-taking added to selling pressure. At CMC Markets, Michael Hewson said: “If investors are hoping that the engine of the Chinese growth will help keep the global economy ticking over they could well be in for a disappointment.” In the US, stocks edged lower, with all eyes on the initial public offer (IPO) of the British football club Manchester United. The blue-chip Dow Jones Industrial Average was down 0.1% at 13,151.64 points. The broader S&P 500-stock index edged down by 0.14% to 1,400.84, while the tech-rich Nasdaq fell 0.19% to 3,013.01. The downturn was an ominous omen for the debut of Britain’s most successful football team Manchester United on the New York Stock Exchange, with the stock opening barely higher than its $14 cut-price initial public offering. On public debt markets, the yield on 10-year Spanish bonds rose to 6.907% from 6.846% at the close of trade on Thursday, while Italian yields rose to 5.903% from 5.859%. Once again, a lack of financial information was cited as a factor behind a lack of market activity. In China meanwhile, exports grew just 1% in July year-on-year to $176.9bn, while imports rose 4.7% to $151.8bn, cutting the trade surplus to $25.1bn from $31.7bn in June. Chinese retail sales, industrial output and inflation all weakened in July, indicating the export-driven economy was feeling the effects of Europe’s debt crisis lowering demand in a key market. The figures will also add to calls for China’s leaders to further loosen monetary policy to kick start growth, which in the April-June quarter grew at its slowest pace since the height of the global crisis in 2008-2009. “Worse-than-expected trade data, slowing industrial output growth and lower loans figures have put the focus firmly back on China today - with pressure increasing on their policy makers to introduce further stimulus measures,” said Rebecca O’Keeffe, head of investment at online brokerage Interactive Investor.