Markets stutter as Citigroup cuts China growth forecast

Markets were subdued in afternoon trading as fears over China, coupled with instability in the Middle East, weighed on investor sentiment.

Economists at Citigroup cut their GDP growth forecast for the powerhouse Asian economy from 8% to 7.6% for 2013. Other signs of a slowdown from China also emerged to damage sentiment. According to figures from the London Metal Exchange (LME), copper inventories in Asia rose last week for the first time in five weeks, suggesting a softening of activity in the region. Elsewhere, unrest in the Middle East following recent protests in Afghanistan added to the nervous mood among investors, with little excuse needed to take some profits after QE3 provided a lift last week. In the US, the...