FTSE 100 ends the day in negative territory

London shares stayed in negative territory on Wednesday as positive British job news failed to offset jitters over further downbeat Chinese economic data. The FTSE 100 Index ended the day some 67 points lower to 6,275 despite data showing that UK employment rose by 140,000 in the three months to August to a new record high of 31mln. Wage growth, however, edged up only slightly to 3% from 2.9% in the three months to July, below hopes of 3.1%. Investors remained transfixed by the flow of grim news out of China, where producer prices fell for the 43rd month in a row in September and inflation dropped 0.4 percentage points to 1.6%. Connor Campbell at spread-betting firm Spreadex said: “Combine this with yesterday’s commodity-wobbling 20% decline in imports, and, after a fortnight’s respite, the markets are seeing a mini-revival of the Chinese-data inspired losses that defined August and September.” Eurozone industrial production also disappointed, falling back 0.5% month-on-month in August after a gain of 0.8% in July. Howard Archer at IHS Global Insight said: “However, it is evident that industrial production has been distorted during the third quarter by the timing of summer holidays in various countries.” Across the pond “US retail sales disappointed once more today, further highlighting the slowdown in an economy which has seen employment, trade and industry PMI's deteriorate in recent readings,” Joshua Mahony at IG said. The markets unsurprisingly reacted negatively, with the Dow Jones losing 108 points, 0.6%, to 16,977 while the Nasdaq and broader S&P500 dropped around 0.3%. On the UK corporate front, Randgold Resources (LON:RRS) twinkled 79p to 4,490p as the gold price rose to US$1,167 an ounce on global economic woe. Mexican silver and gold miner Fresnillo (LON:FRES) was also 16.5p to the good at 750p as it reported higher silver production in the year to date and a 16% rise in quarterly gold production, both against the same periods a year ago. Domino’s Pizza (LON:DOM) was bubbling away merrily after the takeaway chain forecast annual results ahead of hopes after a strong third quarter. Shares lifted 113p or 12.7% to 1,003p. Johnnie Walker and Guinness group Diageo (LON:DGE) lost 33p to 1,809p on news of the sale of part of its wine business for £320mln. Independent Oil & Gas (LON:IOG) spurted 3p or 65% to 7.6p after Darwin Capital told the North Sea-focused company that it had sold all the subscription shares it held pursuant to the loan provided to IOG, removing a large stock overhang. Galasys (LON:GLS) ticked up 2p to 30p as the Asia-focused theme park ticketing supplier won two contracts in China. But Sula Iron & Gold (LON:SULA) backtracked 0.1p or 21% to 0.39p on news of a placing to raise £500,000.