The U.K.?s FTSE 100 index ended slightly lower on Tuesday, as miners added pressure after iron-ore prices declined, offsetting optimism over a growth upgrade from the International Monetary Fund.
The benchmark index ?closed a bit lower at 6,834.26, after swinging between small gains and losses earlier in the day.
A slew of economic problems, including excessive local debt, marred China’s economic growth in 2013. Citibank China economist Minggao Shen tells Deborah Kan what hurdles the country faces in jump starting growth in 2014.
The IMF lifted the economic growth forecast for the from an earlier estimate of 1.9%, saying activity in the country has been buoyed by easier credit conditions and increased confidence.
The move wasn?t, however, enough to send the FTSE 100 rallying, with mining firms declining as iron-ore prices fell to their lowest level in six months. The downturn was partly due to a retreat by Chinese buyers in response to slowing domestic steel production and rising stockpiles. Shares of Rio Tinto PLC dropped 3.1%, Anglo American PLC lost 2.7%, BHP Billiton PLC fell 1.7% and Glencore Xstrata PLC gave up 1.3%. Metals prices were mixed.
On a more upbeat note in London, shares of Unilever PLC, the maker of Dove soap and Axe deodorant, gained 1.8% after the consumer-products company reported a rise in full-year earnings.
?Unilever?s results were refreshingly dull, doubly so in view of the amount of second-guessing by analysts and investors over the last couple of weeks. EPS came in 3% ahead of our forecast at ?1.58, and we can?t see anything untoward in their composition,? said James Edwardes Jones, an analyst at RBC Capital Markets, in a note.