LONDON MARKET CLOSE: FTSE Finishes Flat Amid Global Growth Worries

LONDON (Alliance News) - The FTSE 100 fluctuated between red and green on Monday, ending the session broadly flat with volatility low as the US sat out the start of the week for Martin Luther King day. Stocks began the session on the back foot following weak economic growth data from China overnight, but managed to recover some early losses as the day progressed. Kingfisher and Rentokil Initial were among the blue-chip fallers on Monday, both knocked after broker rating downgrades. BAE Systems, meanwhile, finished higher after agreeing a joint venture with Rheinmetall.The FTSE 100 index closed 2.26 points higher at 6,970.59. The FTSE 250 ended down 1.64 points at 18,762.83, and the AIM All-Share closed up 0.89 of a point at 914.56.The Cboe UK 100 ended down 0.2% at 11,822.91, the Cboe UK 250 closed flat at 16,757.14, and the Cboe Small Companies ended up 0.2% at 11,123.62.In European equities on Monday, the CAC 40 in Paris ended down 0.2%, while the DAX 30 in Frankfurt ended down 0.6%."Concerns over the health of the global economy kept pressure firmly on European bourses on Monday," said Fiona Cincotta, senior market analyst at City Index. Cincotta continued: "The Chinese economy expanded at its slowest annual pace since 1990 as the US - Sino trade war and policy decisions from Beijing impacted on consumer confidence. Given the importance of the Chinese consumer for global brands, a lowering of confidence would be expected to hit international firms sharply."Released overnight in China, official figures showed the world's second largest economy grew by 6.6% in 2018, the slowest rate since 1990.In the final quarter of 2018, the economy grew 6.4% amid signs of a slowdown as China grapples with issues including the ongoing trade war with the US. Adding to fears over a global economic slowdown, the International Monetary Fund's latest World Economic Outlook lowered its growth estimates for 2019. The WEO now projects the global economy to grew 3.5% in 2019, before picking up slightly to 3.6% in 2020. In October, global growth had been seen at 3.7% in 2019 and 3.7% in 2020."The further downward revision since October in part reflects carry over from softer momentum in the second half of 2018 - including in Germany following the introduction of new automobile fuel emission standards and in Italy where concerns about sovereign and financial risks have weighed on domestic demand - but also weakening financial market sentiment," the WEO's report said.The IMF flagged that US-China tensions are casting a "shadow" over global economic prospects, and the downwards revisions were also driven by the tariffs imposed by the two countries on each other's goods. Risks to global growth are tilted to the downside, the IMF said, with an escalation in trade tensions remaining a "key source" of this. The report also highlighted "triggers" which could spark a deterioration in sentiment, one of which was the risk of a no-deal Brexit.Sticking with the UK's departure from the EU, Prime Minister Theresa May on Monday said that she will continue to focus on getting a Brexit deal through the House of Commons rather than extending or revoking Article 50.May said she would conduct further talks this week on the controversial Brexit backstop to find an arrangement to take back to Brussels that meets obligations to the people of Northern Ireland and Ireland "in a way that can command the greatest possible support in the House".The prime minister again voiced her opposition to delaying or halting the UK's planned departure from the EU on March 29, telling MPs she did not believe there was a majority in the Commons for a second referendum. May also dismissed reports that she was considering rewriting the Good Friday Agreement to neutralise the issue.The pound was quoted at USD1.2899 at the London equities close Monday, compared to USD1.2897 at the close on Friday.The euro stood at USD1.1368 at the European equities close Monday, against USD1.1362 at the same time on Friday.Ending at the bottom of the FTSE 100 on Monday was DIY retailer Kingfisher, 4.8% lower after RBC Capital Markets downgraded its rating on the B&Q parent to Underperform from Sector Perform.Rentokil Initial was also smarting from a broker rating downgrade, shares shedding 2.8% after Goldman Sachs cut the hygiene firm to Neutral from Buy. Among the gainers was BAE Systems, finishing up 1.1% after agreeing a new joint venture focused on military vehicle design with Rheinmetall.Rheinmetall is to buy a 55% stake in BAE's UK-based combat vehicles business for GBP28.6 million, with fellow defence contractor BAE retaining the remaining 45%.In the FTSE 250, Dixons Carphone gained 2.2% after a report from Sky News that activist investor Elliott Advisors is considering taking up a stake in the electronics retailer.The news agency said it has learnt that Elliott has been undertaking detailed analysis of Dixons Carphone's finances for some weeks.The report comes just a day before a scheduled trading update from the firm. Also reporting on Tuesday are low-cost airline easyJet, which releases first quarter results, while contracts-for-difference provider IG Group and retailer Pets at Home put out trading statements. Shares in William Hill fell 2.7% after the bookmaker said earnings are set for a year-on-year fall in 2018. The FTSE 250-listed bookmaker said that adjusted operating profit for the year is forecast to be around GBP234 million, down 20% from GBP291.3 million reported for 2017. The figure is, however, in line with its profit guidance range of GBP225 million to GBP245 million. Consensus had lay at GBP232 million.William Hill said the decline in profit was due to enhanced customer due-diligence measures and costs from the group's expansion in the US.Hammerson closed 2.9% lower after JPMorgan cut its rating on the retail property investor to Neutral from Overweight. Elsewhere on the Main Market, Flybe shares jumped 42% after Sky News said the airline's largest shareholder is threatening to block the sale of the struggling firm.Hosking Partners, which holds around a 19% stake in Flybe, has "instructed lawyers to explore its options in relation to the company's proposed sale" according to Sky. Earlier in January, Flybe agreed to sell its main trading company and online business for GBP2.8 million to Connect Airways, a joint venture between Stobart Group, Virgin Atlantic, and DLP Holdings. In addition, the companies agreed a bridge loan of up to GBP20 million to fund Flybe.Shares in Stobart Group, which owns London Stanstead Airport, closed down 2.0%.Brent oil was quoted at USD62.38 a barrel at the London equities close Monday from USD62.80 late Friday.Gold was quoted at USD1,279.95 an ounce at the London equities close Monday against USD1,282.80 at the close on Friday.In the economic calendar on Tuesday, UK average earnings and the unemployment rate are at 0930 GMT while Germany's ZEW economic sentiment survey is at 1000 GMT, while findings from the survey for the eurozone are due at the same time. The World Economic Forum in Davos will continue on Tuesday.