FTSE 100 Dips Amid Economic Slowdown, European Indices Following Suit

The FTSE 100 index opened the week on a weaker note, as disappointing UK economic data weighed on investor sentiment. The leading index is currently down by 0.69%, having dipped below the 8,300 level.

The downbeat mood was set following the latest revision of the UK's gross domestic product (GDP) figures, which showed the economy expanded by just 0.5% in the second quarter, a slight but psychologically important downgrade from the initial estimate of 0.6%. This revision signals a slower pace of economic recovery and poses concerns for future growth prospects as the nation deals with persistent inflationary pressures and external geopolitical uncertainties.

Across the channel, the mood wasn't much brighter in European equities. Both the CAC 40 of Paris and the DAX 40 of Frankfurt experienced downtrends, declining by 1.53% and 0.5% respectively. Inve

In Germany, import prices demonstrated modest growth at 0.2% in August year-on-year, contrasting with a 0.4% decrease compared to July, suggesting some cooling in the input cost pressures that have been fuelling inflation. German export prices showed a year-on-year rise of 0.8%, though remained flat month-on-month.

Providing a glimmer of optimism, the ifo Institute's report indicated that German companies, particularly in the consumer sectors, are now less inclined to raise prices, with expectations for future price increases dropping noticeably.

In the corporate scene, telecommunications giant Vodafone edged down by 0.34% following news that shareholder approval is no longer a prerequisite for its impending merger with Three UK. Vodafone is set to hold a majority share of 51% in the merged entity.

Another company making headlines was Applied Nutrition, as it is considering an initial public offering (IPO), seeking to list its ordinary shares on the main market of the London Stock Exchange. This move underscores the attractiveness of the LSE as a listing venue despite the current economic headwinds.

On the global stage, manufacturing activity in China contracted for a fifth consecutive month in September with the Purchasing Managers' Index coming in at 49.8 points, a figure that is slightly above expectations but still indicative of a contraction in the sector. This data adds to the broader concerns of a global economic slowdown, which could have ripple effects on other economies and markets.