UK Indexes Lower; Output Price Inflation Eases

Arthi Gupta
13 Apr, 2012
New York City

The UK indexes declined tracking weaker-than-estimated Chinese economic data. UK factory gate inflation eased to a two-year low in March.

[R]3:30 PM London – The UK indexes declined tracking weaker-than-estimated Chinese economic data. UK factory gate inflation eased to a two-year low in March.[/R]

The UK indexes dropped on weak economic cues globally and wholesale inflation declined to a 2-year low.

Weaker than expected Chinese economic growth data added to the caution as Italy is set to face a wave of labor strikes and Spanish banks may seek more capital in the next six months.

Italy’s labor unions are to stage a nationwide protest today against the pension plan laid out by Prime Minister Mario Monti that was part of a $26 billion austerity package passed in January.

The Chinese gross domestic product expanded 8.1% on an annual basis in the first quarter compared to 8.9% rise in the fourth quarter, the National Bureau of Statistics said today. The latest result was the weakest in 11 quarters.

In London, the benchmark index FTSE 100 declined 47.92 or 0.8% to 5,663.73 and the pound edged lower to $1.5938.

For the week, the FTSE 100 index declined 1.8%.

UK Output Price Inflation Eases

The UK output price inflation eased to 3.6% annually in March, from 4.1% in February, a report released by the Office for National Statistics showed today.

On a monthly basis, input prices gained 1.9% in March, slower than the 2.5% rise recorded in February.

Gainers & Losers

Falkland Oil and Gas Limited soared 4.1% to 69.25 pence after the oil and gas explorer reported fiscal year 2011 loss before tax widened 78% to $6.64 million compared to a loss of $3.74 million the year before.

Norcon plc surged 14.4% to 29.75 pence after the global communications network specialist generated a pre-tax profit of $5.4 million in fiscal year 2011 on revenues of $66.6 million.

Premier Oil plc fell 1.3% to 388.20 pence after the independent energy explorer said the Biawak Besar-1x exploration well on Natuna Sea Block A has reached a total depth of 5,950 feet and will be plugged and abandoned.

Sage Group PLC, the global enterprise software company fell 2.6% to 287.80 pence after a broker downgrade.