Stocks at the bottom
Stocks at the bottom of the iShares MSCI United Kingdom ETF (EWU) on October 21 were Pearson (PSO), Weir Group (WEIR), and Anglo American (AAL). These stocks yielded -15.95%, -6.32%, and -2.95%, respectively, on the day.
Pearson, the British publication in education, fell on Wednesday after the company announced lower enrollments in its colleges in the United States. The company also disclosed a fall in textbook purchases in parts of South Africa that would affect its full-year revenue.
The graph above shows the price movement of the stocks of Pearson and the EWU ETF.
Mining stocks like Anglo American remained affected owing to weak Chinese data about its GDP (gross domestic product) growth even after it lowered its diamond production as a response to the current trading condition.
Impact of weak Chinese data on other sectors
Weak Chinese GDP growth data impacted many stocks as investors look ahead to the European Central Bank’s (or ECB) meeting on Thursday, October 22. The meeting is anticipated to take some quantitative easing measure to ward off the threat of deflation in the European region. Until the results of the meeting are out, any news from China is bound to impact UK stocks.
Commodities like oil and metal prices had plummeted and thus affected many stocks of mining and oil drilling companies. These included BHP Billiton (BHP) and Rio Tinto (RIO). The latter is an industrial metals and mining company.
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