London close: FTSE ends lower ahead of UK inflation

The FTSE 100 closed slightly lower on Monday as investors awaited Tuesday’s UK inflation figures on a quiet day of news.

The only notable economic releases on Monday included Chinese inflation and producer prices, meaning there were very few drivers on the market.

China’s consumer price index rose 2.3% year-on-year in March, falling shy of forecasts for 2.4% growth and remaining in line with the previous month.

The producer price index fell 4.3% in March from a year ago, compared to analysts’ estimates for a 4.6% decline and a 4.9% drop in February.

With little in the way of economic data, traders looked ahead to UK inflation on Tuesday which is expected to show improvement in March but is forecast to remain below the Bank of England’s 2% target. Analysts have pencilled in 0.4% year-on-year growth for the consumer price index in March, compared to 0.3% a month earlier. On the month CPI is projected to rise 0.3% following a 0.2% increase in February.

Tuesday’s agenda will also see the International Monetary Fund’s latest economic growth forecasts. The IMF is expected to cut its economic growth forecasts amid a slowdown in China and lower commodity prices.

Meanwhile, oil prices regained strength as the dollar weakened and as hopes rose for an agreement on an output freeze at a meeting between global producers on 17 April.

Brent crude rose 2.2% to $42.90 per barrel and West Texas Intermediate climbed 1.9% to $40.50 per barrel at 1643 BST.

In company news, mining stocks were the biggest risers on the FTSE 100 as precious metal prices gained and as investors bet that benign Chinese inflation data would prompt some action by Beijing. Anglo American, Glencore, Fresnillo and Rio Tinto were in the black.

Housebuilders suffered the heaviest losses after a report from consulting firm Arcadis NV showed the record number of luxury homes planned in London was raising the prospect that developers could be forced to turn some projects into offices as demand falls. Berkeley Group, Taylor Wimpey and Persimmon were in the red.

Food producer Cranswick advanced as it announced the acquisition of CCL Holdings, and its 100% owned subsidiary Crown Chicken Limited from the Thacker family and management on Monday.

Direct Line slid after Barclays downgraded the stock to ‘equalweight’ from ‘overweight’ and cut the price target to 369p from 443p as it took a look at UK motor insurers.

Market Movers

FTSE 100 (UKX) 6,208.05 0.00%
FTSE 250 (MCX) 16,786.56 0.00%
techMARK (TASX) 3,148.49 0.00%

FTSE 100 - Risers

Standard Life (SL.) 344.10p 0.00%
British American Tobacco (BATS) 4,193.50p 0.00%
HSBC Holdings (HSBA) 418.90p 0.00%
St James's Place (STJ) 898.50p 0.00%
Vodafone Group (VOD) 225.90p 0.00%
Antofagasta (ANTO) 439.30p 0.00%
Royal Bank of Scotland Group (RBS) 214.30p 0.00%
Worldpay Group (WI) (WPG) 277.10p 0.00%
Travis Perkins (TPK) 1,825.00p 0.00%
RSA Insurance Group (RSA) 470.10p 0.00%

FTSE 100 - Fallers

Schroders (SDR) 2,507.00p 0.00%
Vodafone Group (VOD) 225.90p 0.00%
Worldpay Group (WI) (WPG) 277.10p 0.00%
ARM Holdings (ARM) 1,036.00p 0.00%
InterContinental Hotels Group (IHG) 2,874.00p 0.00%
Standard Life (SL.) 344.10p 0.00%
Provident Financial (PFG) 2,935.00p 0.00%
Inmarsat (ISAT) 1,013.00p 0.00%
British American Tobacco (BATS) 4,193.50p 0.00%
Lloyds Banking Group (LLOY) 65.58p 0.00%

FTSE 250 - Risers

Evraz (EVR) 99.55p 6.93%
Amec Foster Wheeler (AMFW) 452.00p 3.91%
Melrose Industries (MRO) 348.40p 0.84%
Greencore Group (GNC) 381.60p 0.82%
Indivior (INDV) 172.00p 0.58%
William Hill (WMH) 330.50p 0.15%
RPC Group (RPC) 770.00p 0.06%
Petrofac Ltd. (PFC) 867.00p 0.06%
Countrywide (CWD) 374.10p 0.00%
Weir Group (WEIR) 1,052.00p 0.00%

FTSE 250 - Fallers

IG Group Holdings (IGG) 780.00p -1.39%
BBA Aviation (BBA) 193.00p -1.18%
Playtech (PTEC) 826.50p -1.14%
Tate & Lyle (TATE) 584.00p -1.10%
JPMorgan American Inv Trust (JAM) 293.20p -0.98%
Greene King (GNK) 873.50p -0.40%
Stagecoach Group (SGC) 262.00p -0.38%
Hiscox Limited (DI) (HSX) 953.50p -0.26%
Saga (SAGA) 196.70p -0.25%
Balfour Beatty (BBY) 235.30p -0.08%