The Chinese economy continues to splutter and that’s bad news for a FTSE 100 chock full of companies which are closely tied to its fortunes.
AJ Bell investment director Russ Mould said: “This time it’s trade data which has come in way short of expectations. China has been trying to move to being an economy driven by domestic consumption but the level of support provided to households during Covid and the country’s particularly stringent and long-lasting Covid restrictions didn’t match up to those seen in the West.
“Expecting a big wave of ‘revenge spending’ was always likely to be a forlorn hope. To compound matters a weakening global economy and geopolitical tensions with some of its trade partners will have done nothing for China’s export market. Miners and Asian-focused insurer Prudential are among the top fallers in London this morning.
“Holidays remain a priority as people continue to look to get away using their stretched finances and it feels telling Holiday Inn operator InterContinental Hotels expects a full recovery from the pandemic by 2025 as it reports a notably big increase in profit.
“The company’s franchise-based model means it can expand capacity to meet returning demand without requiring lots of fresh capital.”
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