Member access

4-Traders Homepage  >  Shares  >  London Stock Exchange  >  Barclays PLC    BARC   GB0031348658


Delayed Quote. Delayed London Stock Exchange - 03/31 11:35:05 am
242.6 GBp   -2.10%
03/31DJSouth Korea's Economy Hits a Bump
03/31DJTPK Raised US$383.6 Million in Convertible Bond, New-Share Sale -..
03/31DJU.S. Government Bonds Rise for Fifth Straight Quarterly Gain
News SummaryMost relevantAll newsSector news 
The feature you requested does not exist. However, we suggest the following feature:

South Korea's Economy Hits a Bump

03/31/2015 | 11:47pm US/Eastern
By Kwanwoo Jun 

SEOUL--South Korea's economy hit a weak note in March as exports shrank more sharply than expected and manufacturing slid back into contraction.

The soft picture is likely to intensify political calls for more fiscal or monetary stimulus. In March, the central bank cut its policy rate to the lowest level on record.

The trade ministry said Wednesday exports--which account for about half of the country's growth--declined 4.2% from a year earlier. Economists had expected a decline of 0.5%. Exports fell 3.3% in February.

Lower oil prices eroded the value of Korean petroleum and petrochemical products overseas, the ministry said. The weak exports were also due to a slowdown in China, which takes in a quarter of Korea's total shipments overseas, it added.

Korea's factory-floor conditions worsened in March, separate data showed. The HSBC Korea manufacturing purchasing managers index fell to 49.2 in March from 51.1 in February and January. Readings below 50 indicate manufacturing activity is in contraction.

"This was underpinned by a fall in new orders, with the rate of decline the fastest in over one-and-a-half-years," Markit Economics analyst Amy Brownbill said.

Prices of Korean equities dropped in early trade Wednesday following the data. The benchmark Kospi Composite index was down 0.6% around midday.

Other data showed South Korea's inflation slowed to a nearly 16-year low in March. The state-run statistics agency said the consumer-price index rose 0.4% year-to-year in March--the weakest since July in 1999--following a 0.5% gain in February.

Lower utility rates and stable farm-produce prices kept inflation below 1% for a fourth month in March, officials said.

"Soft inflation may support expectations of further monetary easing," Barclays economists said in a research note.

The central bank delivered a 0.25 percentage-point rate cut in March, taking the policy rate to a record low of 1.75%.

Korean policy makers have dismissed the possible risk of deflation, saying the slower prices were largely due to lower oil prices and other supply-side factors.

From the prior month, the index remained unchanged in March. Core CPI, which strips out volatile energy and food prices, rose 2.1% year-to-year in March. The index rose 0.2% in March from the previous month.

The latest readings were all below the central bank's annual inflation target band of 2.5% to 3.5%. Inflation averaged 1.3% in 2014.

The trade data also showed imports plunged 15.3% from a year earlier in March, following a revised 19.7% decrease in February.

The sharper drop in imports than in exports created a trade surplus of $8.39 billion in March, widening further from the previous month's revised $7.71 billion. The trade balance has been in the black since February 2012.

Access Investor Kit for Barclays Plc


Access Investor Kit for Barclays Plc


React to this article
Latest news on BARCLAYS PLC
03/31DJSouth Korea's Economy Hits a Bump
03/31DJTPK Raised US$383.6 Million in Convertible Bond, New-Share Sale - Term Sheet
03/31DJU.S. Government Bonds Rise for Fifth Straight Quarterly Gain
03/31DJCost of Borrowing Cash Overnight in Exchange for U.S. Treasurys Spikes
03/31DJTreasurys Rise to Continue Win Streak
03/31DJIn Fiscal Setback, Brazil Posts Primary Deficit for February
03/31DJJunk Bonds Find Buyers After Crude's Trip Down
03/31DJU.S. Government Bonds Set for Fifth Straight Quarterly Gain
03/31DJU.S. Government Bonds Set for 5th Straight Quarterly Gain
03/31DJInvestors Still Bullish on Highflying European Stocks -- Update
Duration : Period :
Barclays PLC Technical Analysis Chart | BARC | GB0031348658 | 4-Traders
Income Statement Evolution
More Financials
Dynamic quotes