London midday: Stocks decline as UK retail sales, oil prices fall

London stocks were on the back foot on Thursday as data showed UK retail sales fell and oil prices tumbled.

UK retail sales dropped 0.4% month-on-month in February as cold weather delayed the purchases of spring and summer attire, the Office for National Statistics revealed on Thursday. Analysts had forecast a 1.0% decrease in February, after rising the most in more than two years in January.

“Shoppers tend to be tight-fisted after the January sales, but deeper concerns surrounding a possible Brexit might be making them think twice before spending,” said Dennis de Jong, managing director at UFX.com.

However, compared to the same month a year ago retail sales jumped 3.8% in February, surpassing estimates for a 3.5% gain, as low inflation and an increase in employment supported consumer spending.

Meanwhile, oil prices were under pressure after the Energy Information Administration on Wednesday reported US crude stocks rose by 9.4 million barrels to 532.5 million barrels in the week ended 18 March. Analysts had forecast an increase of 2.5 million barrels.

Brent crude dipped 2.3% to $39.56 per barrel and West Texas Intermediate declined 2.4% to $38.83 per barrel at 1134 GMT.

In the US, Federal Reserve official James Bullard speaks at 1215 GMT in New York, initial jobless claims figures are due at 1230 GMT, durable goods orders will be released at 1230 GMT and Markit’s US manufacturing purchasing managers’ index is out at 1345 GMT.

In company news, shares in Next slumped after it warned the year ahead could be the toughest since 2008 as it reported is full year results. The fashion retailer issued new guidance for 2016 that includes the possibility that profits could decline as much as 4.5%.

Renishaw plunged after the engineering company issued a profit warning due to a downturn in Asia.

National Grid rallied a day after announcing its new UK executive director, appointing High Speed 1’s Nicola Shaw to the role. Other utilities were led higher including SSE and Severn Trent.

Outsourcer Mitie declined on Thursday after it warned that full year revenues will be below the current range of market expectations, although profit will fall within.

Paddy Power Betfair gained after saying on Wednesday that chief operating officer Andy McCue will leave the company and cease to be a director with effect from 30 April.

Market Movers

FTSE 100 (UKX) 6,114.40 -1.37%
FTSE 250 (MCX) 16,694.39 -1.01%
techMARK (TASX) 3,083.87 -0.90%

FTSE 100 - Risers

CRH (CRH) 1,955.00p 0.88%
Paddy Power Betfair (PPB) 9,305.00p 0.65%
National Grid (NG.) 988.10p 0.47%
Compass Group (CPG) 1,217.00p 0.16%
London Stock Exchange Group (LSE) 2,824.00p 0.14%
Kingfisher (KGF) 371.30p 0.03%
SSE (SSE) 1,460.00p -0.00%
Carnival (CCL) 3,522.00p -0.00%
Severn Trent (SVT) 2,148.00p -0.09%
Capita (CPI) 1,027.00p -0.10%

FTSE 100 - Fallers

Next (NXT) 5,800.00p -12.91%
Standard Chartered (STAN) 439.35p -8.01%
Anglo American (AAL) 484.50p -7.45%
Antofagasta (ANTO) 457.60p -5.10%
Prudential (PRU) 1,279.50p -4.94%
Glencore (GLEN) 146.30p -4.69%
BHP Billiton (BLT) 761.40p -4.29%
Marks & Spencer Group (MKS) 396.10p -4.05%
Rio Tinto (RIO) 1,889.50p -4.04%
Fresnillo (FRES) 912.00p -4.00%

FTSE 250 - Risers

Fidessa Group (FDSA) 2,403.00p 2.91%
Euromoney Institutional Investor (ERM) 897.00p 2.34%
Hikma Pharmaceuticals (HIK) 1,903.00p 1.98%
Circassia Pharmaceuticals (CIR) 265.10p 1.88%
Riverstone Energy Limited (RSE) 811.00p 1.57%
Melrose Industries (MRO) 350.10p 1.54%
Regus (RGU) 311.00p 1.30%
Vectura Group (VEC) 160.20p 1.26%
JD Sports Fashion (JD.) 1,119.00p 1.18%
Jimmy Choo (CHOO) 132.50p 1.15%

FTSE 250 - Fallers

Renishaw (RSW) 1,858.00p -9.32%
Mitie Group (MTO) 240.70p -8.96%
Kaz Minerals (KAZ) 164.80p -7.15%
Tullow Oil (TLW) 197.60p -6.40%
Countrywide (CWD) 365.40p -5.73%
Ophir Energy (OPHR) 79.35p -4.28%
Aberdeen Asset Management (ADN) 259.50p -4.03%
Weir Group (WEIR) 1,070.00p -3.86%
Vedanta Resources (VED) 308.00p -3.75%
Petrofac Ltd. (PFC) 878.00p -3.68%