London close: Stocks slip after failed Russia rebellion

London's stock markets closed in a muted state on Monday after a slow start to the week, amid uncertainty arising from an unsuccessful coup attempt in Russia over the weekend.

The FTSE 100 ended the session down 0.11% at 7,453.58, while the FTSE 250 was 0.49% weaker at 17,974.67.

A failed coup attempt against Russian president Vladimir Putin by the Wagner group of mercenaries added a layer of geopolitical uncertainty to global markets at the start of the week.

The rebellion was quickly called off by Wagner chief Yevgeny Prigozhin, however, after he apparently agreed to move to exile in Belarus while those in his employ were told they would be spared arrest.

In the currency market, sterling was last down 0.06% on the dollar to trade at $1.2706, while it weakened 0.26% against the euro to change hands at €1.1645 by the end of Monday's trading session.

"An armed rebellion in a G20 state has failed to move markets in any meaningful way, not least because the rebellion itself barely lasted half the weekend," said IG chief market analyst Chris Beauchamp.

"While it leaves open the possibility of more disruption, the net effect on markets so far has been limited to say the least.

"The selling seen on Friday has not had much follow-through, and the second quarter may well end on a subdued note despite renewed inflation worries."

Business mood in Germany sours further in June

In a relatively quiet day for economic news, fresh data from Europe’s biggest economy showed the mood in Germany's business sector declining more sharply than anticipated in June.

The Ifo business climate index dipped to 88.5 for the month - a noticeable drop from the 91.5 reported in May, and more severe than consensus expectations for a figure closer to 90.7.

Ifo’s expectations index, which provides an outlook of business sentiment for the months ahead, fell to 83.6 in June from 88.3 in May – its lowest level since November last year.

Moreover, the current situation index - a barometer of the present business atmosphere - showed a decrease, slipping to 93.7 from 94.8.

Within the different sectors, the manufacturing index saw a significant decrease, falling into negative territory to -9.9 in June from -0.6 in the previous month.

The service sector also experienced a decline, with its gauge decreasing from 6.8 to 2.7.

Ifo said the index for trade and construction also reported losses, with the trade sector reporting a decrease from -19.1 in May to -20.2 in June.

The construction index also fell, down to -20.1 from the previous month's -18.5.

“The slump in the German Ifo, together with the drop in the purchasing managers’ indexes released on Friday, suggests that German GDP probably contracted for the third quarter in a row in the second quarter of the year,” said analysts at Capital Economics.

“We expect the economy to remain in recession throughout 2023.”

AB Foods falls, Aston Martin shines on EV announcement

On London’s equity markets, Associated British Foods closed down 0.69% despite lifting its annual guidance, following a 13% increase in third-quarter sales at Primark.

The growth in sales was attributed to robust summer sales and customers seeking value for money in light of the ongoing cost-of-living crisis.

Lloyds Banking Group also struggled, slipping 0.97% after a rating downgrade from 'neutral' to 'underweight' by JPMorgan.

Long-suffering movie theatre operator Cineworld Group saw its share price tumble 22.98% following the announcement that it was planning to file for administration in the UK as part of a restructuring plan.

Elsewhere, cruise line operator Carnival fell 11.69% after the company reported a loss of $407m in its fiscal second quarter.

On the upside, shares in Aston Martin Lagonda soared 10.7% after the luxury car manufacturer announced its entry into the electric vehicle market.

The announcement came on the back of a strategic supply agreement with Lucid Group.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 7,453.58 -0.11%
FTSE 250 (MCX) 17,974.67 -0.49%
techMARK (TASX) 4,446.77 -0.78%

FTSE 100 - Risers

Sainsbury (J) (SBRY) 263.90p 2.60%
Berkeley Group Holdings (The) (BKG) 3,847.00p 1.96%
JD Sports Fashion (JD.) 146.60p 1.95%
Taylor Wimpey (TW.) 102.65p 1.94%
Admiral Group (ADM) 2,154.00p 1.80%
Whitbread (WTB) 3,325.00p 1.65%
Next (NXT) 6,706.00p 1.42%
Barratt Developments (BDEV) 413.10p 1.40%
Antofagasta (ANTO) 1,471.00p 1.27%
B&M European Value Retail S.A. (DI) (BME) 577.00p 1.23%

FTSE 100 - Fallers

Vodafone Group (VOD) 70.06p -3.62%
BAE Systems (BA.) 918.40p -2.07%
Haleon (HLN) 321.20p -1.77%
Melrose Industries (MRO) 487.30p -1.34%
Ocado Group (OCDO) 530.60p -1.30%
IMI (IMI) 1,590.00p -1.24%
International Consolidated Airlines Group SA (CDI) (IAG) 157.05p -1.20%
AstraZeneca (AZN) 11,292.00p -1.14%
Ashtead Group (AHT) 5,338.00p -1.11%
Entain (ENT) 1,217.00p -1.06%

FTSE 250 - Risers

Aston Martin Lagonda Global Holdings (AML) 362.20p 10.76%
Ferrexpo (FXPO) 91.35p 7.85%
Wizz Air Holdings (WIZZ) 2,748.00p 3.89%
Urban Logistics Reit (SHED) 117.80p 3.70%
Synthomer (SYNT) 73.25p 3.17%
Ashmore Group (ASHM) 198.10p 2.37%
Hammerson (HMSO) 24.42p 2.26%
Bank of Georgia Group (BGEO) 3,030.00p 2.19%
Cranswick (CWK) 3,270.00p 2.19%
Elementis (ELM) 100.20p 2.14%

FTSE 250 - Fallers

Carnival (CCL) 974.80p -12.10%
Digital 9 Infrastructure NPV (DGI9) 62.50p -8.49%
Bluefield Solar Income Fund Limited (BSIF) 112.60p -4.41%
The Renewables Infrastructure Group Limited (TRIG) 107.60p -4.27%
ICG Enterprise Trust (ICGT) 1,050.00p -4.20%
Hilton Food Group (HFG) 627.00p -4.01%
Jlen Environmental Assets Group Limited NPV (JLEN) 105.40p -3.66%
Pantheon International (PIN) 245.50p -3.35%
IWG (IWG) 133.90p -3.32%
Sequoia Economic Infrastructure Income Fund Limited (SEQI) 71.00p -3.27%