Anglo American (-3.2%), Rio Tinto (-2.3%) and Antofagasta (-2.3%) are among the top fallers on the FTSE 100 this morning, following China’s decision to aim for an economic expansion of “around 5 per cent” for 2023.
The oil price has dipped a little too, as traders calculate that China’s reopening after Covid-19 restrictions will not provide as much growth as expected.
Neil Wilson of Markets.com explains: “Caution seemed the order of the day across markets early on Monday as China set itself one of the lowest gross domestic product target in many years, hinting to investors that the big reopening boom may not be as positive for the global economy as hoped.
“Beijing set a target of around 5% growth this year, creating a relatively low bar for the regime to clear. Oil and other industrial commodities slipped on the news, whilst basic resources stocks in London were hit, dragging the FTSE 100 marginally into the red at the open.”