London open: FTSE nudges lower as energy, mining stocks fall

London stocks nudged lower in early trade on Monday, with miners and energy shares under pressure, as traders looked ahead to key US and UK results later in the week.

At 0850 BST, the FTSE 100 was down 0.1% at 7,905.63.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "A forecast deterioration in the health of the global economy is weighing on minds, pushing equities lower as investors mull the impact of further punishing rate hikes.

"Oil prices have slid further back, largely erasing gains made since OPEC+ announced production cuts, with Brent crude dipping closer to $80 a barrel. The FTSE 100 has opened lower, with BP and Shell and miner Anglo American and Antofagasta among the fallers, as investors assess the prospect that demand for energy and metals will wane if economies contract."

Investors were also likely erring on the side of caution ahead of results from the likes of NatWest, Barclays and GSK in the UK this week and a flurry of tech results in the US, from Microsoft, Alphabet, Meta Platforms and Amazon .

On home shores, the latest house price index from Rightmove out earlier showed that growth in house prices eased in April.

On a monthly basis, average asking prices rose by just 0.2% to £366,247, down from 0.8% growth in March and lower than the average of 1.2% at this time of year.

Rightmove said the unseasonal pricing restraint "is a sign that many new sellers are taking note of the economic headwinds and the transitioning of the housing market to a slower pace and more normal activity levels, last seen in the pre-pandemic market of 2019".

On a year-over-year basis, meanwhile, prices were up 1.7% in April, down from 3% a month earlier.

The average asking price for first-time buyers rose 0.2% in the month in April and 2% on the year to a record £224,963.

Tim Bannister, Rightmove’s director of property science, said: "Agents are reporting that many sellers have transitioned out of the frenzied multi-bid market mindset of recent years and understand the new need to tempt Spring buyers with a competitive price.

"The current unexpectedly stable conditions may tempt more sellers to enter the market who had been considering a move in the last few years but had been put off by its frenetic pace. Buyers may have struggled to find a home that suited their needs in the stock-constrained market of recent years and will now find more choice available.

"However, those who have now decided to make a move should not wait around too long to make an enquiry if they see the right home for sale, as not only is the number of sales agreed now back to pre-pandemic levels, but homes are also on average selling twelve days more quickly than at this time in 2019."

In equity markets, miners and energy shares lost ground as base metals and crude prices fell, with BP, Shell, Glencore and Anglo American among the worst performers on the FTSE 100.

Online fashion retailer Asos was under the cosh after it emerged that ShadowFall had built a £4m short position in the company.

On the upside, Wizz Air flew higher after a rating upgrade by Citi.