Market update: US markets tumble on Chinese data and Boston tragedy

Source: Henderson Global Investors

It was a worrying day for Wall Street yesterday, with US stocks seeing some of their heaviest daily losses since November last year (S&P 500 -2.3%; Nasdaq -2.4%). Weaker-than-expected Chinese growth data (an annual rate of 7.7% versus 7.9% for the previous quarter) caused early losses, dragging down commodity-related shares. Gold experienced its worst two-day decline in 30 years. The market sell-down continued as news broke of explosions, potentially linked to terrorist activity, near the finish line of this year’s Boston marathon. Reports say that at least three people have been killed and more than 100 injured – our thoughts go out to those affected by this tragedy.

Markets across Europe have opened lower in early trading, as investors process yesterday’s news (FTSE 100 -0.6%; FTSE Eurofirst 300 -0.5%). This morning the Office for National Statistics has reported that UK consumer prices rose 2.8% (annual rate) in March, unchanged from last month’s reading. Rises in the cost of books, digital cameras and car insurance were offset by lower inflation for petrol and diesel. The Bank of England expects inflation to exceed 3% later this year.