London close: Stocks start week in a lacklustre state
Stocks in London ended Monday's trading session marginally in the red, influenced by a negative closing on Wall Street last week.
The tepid performance across the pond was attributed to a mixed US non-farm payrolls report on Friday, which led to a modest dip in stocks stateside.
At the close, the top-flight FTSE 100 was down 0.13% at 7,554.49, while the FTSE 250 saw a slightly more pronounced decline of 0.39%, settling at 18,861.67.
In currency markets, sterling strengthened against both the dollar and the euro, climbing 0.18% on the former to reach $1.2772, and edging up 0.25% against the latter to change hands at €1.1610.
“It’s been a negative start for markets in Europe today, with little in the way of positive drivers helping to sustain the rebound that we saw on Friday, in the wake of the July jobs report out of the US,” said CMC Markets chief market analyst Michael Hewson.
“This week’s main focus appears to be on this week’s inflation numbers from the US, which could show that prices edged up in July, however it is the numbers out of China which could be more instructive if headline CPI follows the PPI numbers into deflation.”
Hewson said the day’s trading had been a mixed bag for UK markets, with basic resources acting as a drag on the wider market, along with weakness in the energy sector.
“The big caps of Glencore, Anglo American, BP and Shell are acting as the main drag on the UK benchmark.”
UK housing market faces decline; first-time buyers offer glimmer of hope
In economic news, the UK's housing market experienced another dip in July with the average property price falling 2.4% compared to the same month the previous year, according to the Halifax house price index.
That followed a 2.6% decline in June.
As of July, the median value of a home in the UK stood at £285,044.
Despite it being the fourth consecutive month of declining property prices, with a 0.3% drop in July alone, there was a silver lining as the presence of first-time buyers in the market was offering some resilience amidst the backdrop of rising mortgage costs.
“These figures add to the sense of a housing market which continues to display a degree of resilience in the face of tough economic headwinds,” said Halifax Mortgages director Kim Kinnaird.
“In particular, we’re seeing activity amongst first-time buyers hold up relatively well, with indications some are now searching for smaller homes, to offset higher borrowing costs.”
Mining stocks suffer amid weak copper prices; banks experience upswing
On London’s equity markets, recruitment firm PageGroup lost 0.58% after it reported a dip in its half-year operating profit to £63.9m, down from £115.3m year-on-year.
Additionally, the company’s conversion rate dropped to 12.1% and it reported a 5.0% reduction in its workforce, leaving it with 8,572 employees.
Shipping services provider Clarkson tumbled 3.48% even after it announced a substantial rise in its first-half profit, crediting its broking division's exceptional performance.
Clarkson reported a pre-tax profit of £52.2m for the first half, up from £42m the year before.
Elsewhere, the day saw mining and metal equities facing challenges, largely due to declining copper prices.
Anglo American was down 1.98%, Glencore lost 1.57%, Endeavour Mining was off 1.73%, and Antofagasta was 1.68% weaker.
In broker note action, student accommodation provider Unite Group was in the red by 1.77% after RBC Capital Markets downgraded its rating from 'outperform' to 'sector perform'.
On the upside, banks were in the green, with NatWest Group up 0.93%, Barclays advancing by 0.42%, and HSBC Holdings closing 1.21% stronger.
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 7,554.49 -0.13%
FTSE 250 (MCX) 18,861.67 -0.39%
techMARK (TASX) 4,355.76 -0.21%
FTSE 100 - Risers
Melrose Industries (MRO) 543.20p 2.61%
Rolls-Royce Holdings (RR.) 209.50p 1.45%
BAE Systems (BA.) 1,023.00p 1.39%
3i Group (III) 1,925.50p 1.34%
Airtel Africa (AAF) 115.80p 1.22%
HSBC Holdings (HSBA) 644.10p 1.21%
NATWEST GROUP (NWG) 240.10p 1.14%
St James's Place (STJ) 916.40p 1.01%
Whitbread (WTB) 3,480.00p 0.93%
Fresnillo (FRES) 563.20p 0.86%
FTSE 100 - Fallers
Scottish Mortgage Inv Trust (SMT) 693.60p -2.23%
B&M European Value Retail S.A. (DI) (BME) 533.60p -2.02%
Anglo American (AAL) 2,200.50p -1.87%
Endeavour Mining (EDV) 1,709.00p -1.73%
JD Sports Fashion (JD.) 146.80p -1.64%
Unite Group (UTG) 947.50p -1.61%
National Grid (NG.) 965.40p -1.45%
Glencore (GLEN) 456.70p -1.40%
Antofagasta (ANTO) 1,606.00p -1.38%
BT Group (BT.A) 113.40p -1.31%
FTSE 250 - Risers
Hipgnosis Songs Fund Limited NPV (SONG) 79.50p 3.52%
Hilton Food Group (HFG) 690.00p 3.14%
Bodycote (BOY) 707.00p 2.99%
Ithaca Energy (ITH) 169.00p 2.67%
Petershill Partners (PHLL) 171.00p 2.40%
Hikma Pharmaceuticals (HIK) 2,149.00p 2.33%
FDM Group (Holdings) (FDM) 535.00p 2.29%
Spectris (SXS) 3,408.00p 2.22%
Coats Group (COA) 75.60p 2.16%
Premier Foods (PFD) 125.00p 2.12%
FTSE 250 - Fallers
Capita (CPI) 20.34p -7.29%
Bakkavor Group (BAKK) 100.50p -4.29%
Clarkson (CKN) 2,755.00p -4.01%
Molten Ventures (GROW) 250.20p -3.55%
Future (FUTR) 765.00p -3.23%
Fidelity China Special Situations (FCSS) 224.50p -3.02%
Wizz Air Holdings (WIZZ) 2,300.00p -2.91%
Mobico Group (MCG) 84.50p -2.82%
4Imprint Group (FOUR) 5,210.00p -2.62%
Wood Group (John) (WG.) 159.90p -2.50%