London midday: Stocks fall on Brexit worries as EU referendum looms

London stocks fell on Monday as the pound declined on Brexit fears after evidence pointed towards growing momentum behind the 'Leave' campaign ahead of next week’s referendum.

Sterling was down 0.72% to $1.4154 at 1130 BST after polls showed more Britons in favour of leaving the European Union before the 23 June referendum.

The ORB poll for the Independent showed 55.0% said they were now backing the option to leave the EU, against 45.0% who said they were supporting 'Remain'.

A poll by the Financial Times showed 'Leave' has taken the lead for the first time, at 46% versus the Remain camp's 44%.

“The elevated concerns and mounting anxiety ahead of the EU referendum vote on the 23rd of June has created a contagion, which continues to haunt investor attraction towards not only the Sterling but riskier assets,” said FXTM research analyst Lukman Otunga.

“Volatility has intensified to unfathomable levels while uncertainty nears a peak following the conflicting polls which continue to leave the majority of investors on edge.”

A drop in oil prices also weighed on investor sentiment. A stronger dollar and data showing an increase in US oil rigs pushed Brent crude down 0.87% to $50.11 per barrel and West Texas Intermediate down 1.17% to $48.50 per barrel.

Baker Hughes said the number of rigs drilling for oil in the US rose by three in the week ended June 10, the second straight weekly increase, adding to worries about the global supply glut.

In China, official data showed industrial production growth held steady in May. Industrial output rose 6% in May from a year earlier, the National Bureau of Statistics said, in line with the previous month’s growth and analysts’ expectations.

Retail sales rose 10% year-on-year in May, missing forecasts for a 10.1% increase and following a 10.1% gain the previous month.

China’s fixed asset investments, excluding rural, climbed 9.6% year-on-year in May compared to a 10.5% increase in April. Economists had pencilled in no change.

Among corporate stocks, banks and housebuilders were under pressure on Brexit worries. Lloyds and Barclays were the biggest fallers in the banking sector while Persimmon and Barratt Developments led housebuilders lower.

G4S slumped after it emerged the security services company employed the suspect responsible for a mass shooting at a gay nightclub in Orlando, Florida that killed at least 50 people.

“That G4S has employed a man who’s reportedly been investigated by the FBI three times, once for alleging terrorist ties to co-workers doesn’t reflect well at all on the company’s business practices,” said Jasper Lawler, market analyst at CMC Markets.

“If the name of G4S starts getting dragged through the mud, US contracts may become harder to come by. That would be a serious hit to the company’s bottom line.”

Inmarsat edged higher as it formed a partnership with maritime broadband specialist SpeedCast International to roll out the satellite company's new Global Xpress (GX) service to around 2,000 vessels in five years.

Market Movers

FTSE 100 (UKX) 6,070.91 -0.73%
FTSE 250 (MCX) 16,598.31 -1.36%
techMARK (TASX) 3,013.33 -0.88%

FTSE 100 - Risers

Inmarsat (ISAT) 726.00p 3.20%
Royal Bank of Scotland Group (RBS) 216.30p 1.12%
Randgold Resources Ltd. (RRS) 6,690.00p 0.98%
Mediclinic International (MDC) 890.00p 0.85%
Pearson (PSON) 802.00p 0.63%
GlaxoSmithKline (GSK) 1,417.50p 0.28%
Royal Dutch Shell 'B' (RDSB) 1,794.00p 0.14%
British American Tobacco (BATS) 4,217.50p -0.02%
Reckitt Benckiser Group (RB.) 6,743.00p -0.06%
Imperial Brands (IMB) 3,675.50p -0.07%

FTSE 100 - Fallers

Sky (SKY) 900.50p -2.70%
Lloyds Banking Group (LLOY) 65.28p -2.64%
3i Group (III) 541.00p -2.43%
Hargreaves Lansdown (HL.) 1,239.00p -2.29%
Barclays (BARC) 165.70p -2.18%
Schroders (SDR) 2,497.00p -2.16%
Provident Financial (PFG) 2,673.00p -2.12%
Sainsbury (J) (SBRY) 236.70p -2.11%
Persimmon (PSN) 1,935.00p -2.07%
Capita (CPI) 1,007.00p -1.95%

FTSE 250 - Risers

Centamin (DI) (CEY) 111.90p 1.73%
Circassia Pharmaceuticals (CIR) 269.40p 1.35%
Acacia Mining (ACA) 347.70p 0.87%
BH Macro Ltd. GBP Shares (BHMG) 1,969.00p 0.51%
The Renewables Infrastructure Group Limited (TRIG) 98.05p 0.41%
Petrofac Ltd. (PFC) 728.00p 0.34%
Brown (N.) Group (BWNG) 226.90p 0.27%
UK Commercial Property Trust (UKCM) 80.20p 0.25%
Millennium & Copthorne Hotels (MLC) 420.00p 0.24%
GCP Infrastructure Investments Ltd (GCP) 119.80p 0.17%

FTSE 250 - Fallers

G4S (GFS) 175.90p -6.14%
International Personal Finance (IPF) 269.00p -4.64%
Kaz Minerals (KAZ) 141.30p -4.40%
Ocado Group (OCDO) 233.40p -4.34%
Vedanta Resources (VED) 383.60p -4.10%
Marshalls (MSLH) 293.20p -3.93%
Amec Foster Wheeler (AMFW) 424.00p -3.88%
Shawbrook Group (SHAW) 239.40p -3.62%
Redrow (RDW) 376.10p -3.47%
Paysafe Group (PAYS) 376.70p -3.41%