London close: FTSE falls as China trade data, recession fears weigh
London stocks fell on Wednesday as disappointing Chinese trade data and recession fears outweighed optimism about a further easing of Covid restrictions in China.
The FTSE 100 closed down 0.4% at 7,489.19.
CMC Markets analyst Michael Hewson said: "European markets have remained on the back foot today after the latest China trade numbers for November saw both imports and exports fall off a cliff.
"The surprise wasn’t in the fact that the numbers were weak, it’s how weak they were, exports plunging 8.7%, with some of the reasons well documented, the unrest at the Foxconn plant on Zhengzhou being one such example.
"Imports also plunged by more than expected at -10.6%, the worst month since May 2020, as Chinese domestic demand continued to struggle in the face of over 2 years of perpetual restrictions and lockdowns."
On home turf, the latest survey from lender Halifax showed that house prices suffered their biggest monthly decline in November since the global financial crisis in October 2008, amid rising mortgage rates.
House prices fell 2.3% on the month following a 0.4% drop in October, with the average price of a house standing at £285,579, down from £292,406. On the year, meanwhile, prices rose 4.7% in November, down from 8.2% growth the month before.
Kim Kinnaird, Director of Halifax Mortgages, said: "The market may now be going through a process of normalisation. While some important factors like the limited supply of properties for sale will remain, the trajectory of mortgage rates, the robustness of household finances in the face of the rising cost of living, and how the economy - and more specifically the labour market - performs will be key in determining house prices changes in 2023."
In equity markets, equipment rental firm Ashtead and engine maker Rolls-Royce were the worst performers on the FTSE 100, having rallied a day earlier.
Online greeting card and gift retailer Moonpig tumbled as it said that interim profits had halved and warned that trading conditions had become progressively more challenging through October and November as it cut its annual sales forecast.
Online advertising group Baltic Classifieds was also sharply lower even as it reported a rise in interim profits, driven by all its business units.
In broker note action, PageGroup was knocked lower by a downgrade to ‘underperform’ at Jefferies, while Johnson Matthey fell after a downgrade to ‘underweight’ at JPMorgan.
Wood Group was down after Citi cut its rating to ‘neutral’.
On the upside, GSK surged after a US court ruled in the pharmaceutical company’s favour in a case claiming that its former Zantac heartburn drug caused cancer. Haleon, which was recently spun off from GSK, also jumped.
Mitchells & Butlers was trading up after the pub chain said it swung to a full-year profit despite a challenging backdrop.
Commercial vehicle rental provider Redde Northgate rallied after it said that full-year results would be "modestly above" market views, as it posted a rise in interim profit and revenue, underpinned by fleet growth and new contract wins.
Market Movers
FTSE 100 (UKX) 7,489.19 -0.43%
FTSE 250 (MCX) 18,930.57 -0.89%
techMARK (TASX) 4,397.57 0.46%
FTSE 100 - Risers
GSK (GSK) 1,492.40p 7.54%
Haleon (HLN) 305.70p 3.56%
Ocado Group (OCDO) 685.20p 3.47%
Smith (DS) (SMDS) 317.00p 2.62%
Dechra Pharmaceuticals (DPH) 2,736.00p 2.09%
Smith & Nephew (SN.) 1,091.50p 1.82%
Smurfit Kappa Group (CDI) (SKG) 3,032.00p 1.74%
Frasers Group (FRAS) 895.00p 1.19%
Convatec Group (CTEC) 229.20p 1.15%
Intermediate Capital Group (ICP) 1,216.50p 1.04%
FTSE 100 - Fallers
Ashtead Group (AHT) 4,889.00p -3.53%
Rolls-Royce Holdings (RR.) 90.53p -3.17%
Harbour Energy (HBR) 300.30p -2.91%
Glencore (GLEN) 540.30p -2.84%
RS Group (RS1) 914.50p -2.61%
BT Group (BT.A) 117.35p -2.45%
BP (BP.) 464.00p -2.24%
Prudential (PRU) 1,055.00p -2.00%
WPP (WPP) 840.40p -1.98%
Centrica (CNA) 92.92p -1.90%
FTSE 250 - Risers
Indivior (INDV) 1,786.00p 6.82%
Mitchells & Butlers (MAB) 151.20p 6.48%
Redde Northgate (REDD) 397.00p 6.29%
Ferrexpo (FXPO) 170.00p 4.68%
Paragon Banking Group (PAG) 499.60p 2.76%
Aston Martin Lagonda Global Holdings (AML) 135.05p 2.50%
Abrdn Private Equity Opportunities Trust (APEO) 431.00p 1.65%
Sirius Real Estate Ltd. (SRE) 83.70p 1.45%
Vistry Group (VTY) 604.50p 1.43%
Hikma Pharmaceuticals (HIK) 1,539.00p 1.38%
FTSE 250 - Fallers
Moonpig Group (MOON) 137.70p -8.93%
Baltic Classifieds Group (BCG) 133.20p -7.88%
Dr. Martens (DOCS) 193.10p -5.44%
Tullow Oil (TLW) 38.30p -5.43%
Weir Group (WEIR) 1,683.00p -4.10%
Future (FUTR) 1,341.00p -4.01%
IMI (IMI) 1,289.00p -3.95%
Bridgepoint Group (Reg S) (BPT) 189.00p -3.91%
Genuit Group (GEN) 304.00p -3.80%
Darktrace (DARK) 311.60p -3.80%