London midday: Stocks lower after lacklustre euro area growth figures

The selling pressure on equities continued after weaker-than-expected data on economic growth out of the euro area.

As of 1146 GMT the FTSE was down by 65 points to 6,113.63.

Growth in the single currency bloc slowed to 0.3% quarter-on-quarter in the third quarter, with spending by households propping up activity as exports slowed and – surprisingly, according to Barclays – investment in Germany fell.

For economist Apolline Menut, “the key question is the extent to which real fixed investment will take over consumption as a major growth driver, in a situation where global demand could remain depressed for a longer period than currently foreseen.”

Flat GDP growth in Portugal – due to the political uncertainty - was another negative surprise, while the Dutch economy actually shrunk as global trade slowed down.

Meanwhile, concerns about China weren’t far from traders’ minds either.

“The lack of a significant pick-up in sequential activity in China’s ‘old economy’ since the collapse during the first quarter of 2015 is of increasing concern to us, given the easing in financial conditions over the past six months as well as slowing rates of de-stocking in consumer appliances and autos sectors was expected to flow through to a modest pick-up in metals consumption growth in the fourth quarter of 2015 and extend through 2016,” Goldman Sachs said in a research note sent to clients on 12 November.

Acting as a backdrop, investors were waiting on the latest data on US retail sales and consumer confidence which were due out later in the afternoon.

“With expectations of the Federal Reserve’s ‘lift-off’ continuing to harden, US retail sales data for October will provide a timely cross-check on household consumption trends at the beginning of Q4.

“Even another disappointing outturn [like those in August and September], however, would seem unlikely to derail expectations of a December lift-off unless mirrored in a weaker November employment report,” Lloyds Bank said.

According to the International Energy Agency global oil stocks hit a record near-3bn barrel by end-September. The developed world’s oil watchdog also projected a slowdown in global oil demand in 2016 to a 1.2m barrel per day pace after an increase of 1.8m p/d in 2015.

FTSE 100: Brasilia slaps suspension on Anglo-Australian miner’s JV

BHP Billiton confirmed on Friday that there were nine fatalities at the incident at its Samarco Mineração SA joint venture with Brazilian miner Vale SA and said the operating licence for the mine has been suspended. In addition, four people previously unaccounted for have been found, while 19 people remain unaccounted for.

FTSE 250: Security firm G4S knocked lower

G4S shares slumped on Friday after RBC Capital Markets cut its price target on the stock to 210p from 230p, noting that organic growth has slowed of late.

Second half earnings have been motoring at Auto Trader Group, seven months after the classifieds publisher listed. The company - which listed in March in a £2bn IPO - announced on Friday that revenue was up 8% on the previous period to £138.2m, with reported operating profit growing by 23% to £82.9m in the six months to 27 September. The firm’s basic earnings per share from continuing operations increased more than sixfold – from 0.95p in the first half, to 5.98p.

Industrial valve maker Rotork said orders were down 17% in the third quarter due to the slowdown in the oil sector, but was maintaining its full year guidance with revenue in the range of £530m-£555m and adjusted operating profit of £120m-£130m at current exchange rates. Revenue for the third quarter was 18.1% lower.

Housebuilding and construction group Galliford Try said it continues to see good market conditions in all of its businesses and remains confident of achieving its expectations for the current financial year. The company said its housing business, Linden Homes, has enjoyed improved rates of sale of 0.60 units per outlet per week since the start of the financial year, compared with 0.48 for the equivalent period last year, from an average of 75 outlets.

Russian gold and silver producer Polymetal said it was taking 100% control of the Lichkvaz property in Armenia. Polymetal said it had bought the remaining 75% of the property's holding company for 1.08m Polymetal shares equal to $9.7m or 0.26% of increased share capital.

Luxury shoe-maker Jimmy Choo announced the appointment of Elisabeth Murdoch - daughter of media mogul Rupert Murdoch - as an independent non-executive director. Murdoch is an executive and entrepreneur in the media and technology sectors.

Market Movers

FTSE 100 (UKX) 6,117.26 -0.99%
FTSE 250 (MCX) 16,753.83 -0.69%
techMARK (TASX) 3,039.97 -1.11%

FTSE 100 - Risers

Anglo American (AAL) 458.50p 1.91%
BHP Billiton (BLT) 890.80p 1.54%
CRH (CRH) 1,761.00p 0.46%
Glencore (GLEN) 96.35p 0.45%
easyJet (EZJ) 1,788.00p 0.39%
Rio Tinto (RIO) 2,245.00p 0.31%
Lloyds Banking Group (LLOY) 72.71p 0.23%
GKN (GKN) 280.40p 0.18%
Fresnillo (FRES) 675.50p 0.15%
BG Group (BG.) 973.60p 0.05%

FTSE 100 - Fallers

G4S (GFS) 224.40p -5.00%
Aberdeen Asset Management (ADN) 324.40p -3.25%
Rolls-Royce Holdings (RR.) 520.00p -3.08%
Hikma Pharmaceuticals (HIK) 1,880.00p -2.89%
Shire Plc (SHP) 4,453.00p -2.50%
Johnson Matthey (JMAT) 2,390.00p -2.45%
Burberry Group (BRBY) 1,281.00p -2.44%
Schroders (SDR) 2,913.00p -2.18%
GlaxoSmithKline (GSK) 1,302.50p -2.18%
Pearson (PSON) 757.50p -2.13%

FTSE 250 - Risers

FirstGroup (FGP) 103.60p 4.02%
Vedanta Resources (VED) 420.00p 3.24%
Auto Trader Group (AUTO) 378.00p 3.00%
PZ Cussons (PZC) 309.80p 2.51%
Interserve (IRV) 545.00p 2.25%
CLS Holdings (CLI) 1,794.00p 1.93%
Galliford Try (GFRD) 1,365.00p 1.79%
P2P Global Investments C (P2P2) 965.00p 1.58%
Centamin (DI) (CEY) 60.05p 1.35%
TalkTalk Telecom Group (TALK) 241.80p 1.04%

FTSE 250 - Fallers

Thomas Cook Group (TCG) 106.00p -4.68%
Petra Diamonds Ltd.(DI) (PDL) 56.85p -4.37%
IMI (IMI) 866.00p -3.67%
Nostrum Oil & Gas (NOG) 370.20p -3.37%
Kaz Minerals (KAZ) 80.40p -3.07%
Ophir Energy (OPHR) 92.75p -2.93%
B&M European Value Retail S.A. (DI) (BME) 324.30p -2.79%
Wizz Air Holdings (WIZZ) 1,810.00p -2.48%
Temple Bar Inv Trust (TMPL) 1,034.00p -2.36%
Ocado Group (OCDO) 360.00p -2.33%