Macro concerns tolled on the U.K. stock markets last week following the Eurozone consumer prices fell to more than what was predicted and the rate of U.S. economic growth slowed distinctively.
London’s FTSE 100 was able to finish the session down 0.9 % at 6,749, which concluded its lowest streak since January 21. The Eurozone fell further into deflation last January with the consumer prices falling at a yearly rate of 0.6 % following a 0.2 % fall during the said month, worse than 0.5 % drop expected.
It garnered the largest decrease since July 2009 which came after the European Central Bank announcing a €60 billion a month quantitative easing package to address the contingency of further deflation. Policymakers are trying its best to move the inflation towards its target of slightly below 2 %.
Over on Wall Street, the much stronger gains from internet moguls Google and Amazon were not enough to maintain U.S. markets afloat following the opening bell which allowed figures which showed that the annual gross domestic product (GDP) growth were able to ease to just 2.6 % in the final three months of 2014 from the a 5 % level of the preceding quarter.
GDP figures from across the North American continent were way below expectations, which further weight to the notion that the previously high achieving U.S. economy is running into tougher times.
BT and IAG provide a resistance, gold miners rise
Following an initial rise, British Airways and Iberia owner IAG were able to finish with sharp losses following the news that Qatar Airways has bought a 9.88 % stake in the said firm. While the Doha-based firm said that it might only consider raising its interest in the latter over time.
Telecoms leader BT declined despite beating analysts’ predictions that a solid rise in profits in the third quarter is likely after it announced a new 16-year recovery plan to pay its expanding pension deficit, which now stands at £7 billion. The company also revealed that it would be installing new fibre-cable networks with large-scale pilots this coming summer.
Gold miners Fresnillo and Randgold Resources jumped as gold prices rebounded from a successive two-week low. Oil producer Afren was continuing its highly volatile moves, surging over 26 % following the extension of its deadline for Seplat to make a firm tender for the U.K. group.