London open: Stocks edge down after China data

London stocks edged lower at the open on Monday following the release of disappointing Chinese data.

At 0905 BST, the FTSE 100 was down 0.2% at 7,105.84.

CMC Markets analyst Michael Hewson said: "While we’ve seen a degree of optimism return to the US labour market and the US economy, concerns are rising over the Chinese economy which has been showing some worrying signs of weakness in recent weeks, amidst reports of increasing outbreaks of Delta variant cases which are reportedly prompting lockdowns across various parts of the country.

"The various outbreaks across Asia, which have been accelerating in recent weeks also appear to be starting to bleed into some of the recent economic data, with the latest July trade numbers at the weekend showing export growth of 19.3%, the lowest levels this year, and also below expectations.

"Imports were also weaker than expected, rising 28.1%, down from a 36.7% rise in June, as demand for iron ore, crude oil and steel slowed, while recent floods have also disrupted economic activity.

"On any other scale these numbers would be very good indeed, taking into account residual base effects from last year, as well various port disruptions due to labour shortages and Covid disruption, there is a concern that these numbers could well weaken further."

In equity markets, Hargreaves Lansdown slumped as the investment platform posted a dip in full-year pre-tax profit, but said net new business inflows and assets under administration rose as demand for its services - particularly online - grew. Investors were likely focusing on the 8% decline in the total dividend and chief executive Chris Hill’s warning that trading levels are expected to moderate.

TI Fluid Systems lost ground even as it swung to a first-half profit, while recruiter PageGroup fell despite saying that it swung to an interim profit, having taken a hit in the previous year due to the pandemic, and declaring a special dividend.

On the upside, SSE was the top gainer on the FTSE 100 following reports over the weekend that activist investor Elliott Management has built a stake in the company, fuelling speculation that it could be broken up or taken over.

Vectura rallied as the battle for the inhaler maker intensified after US tobacco giant Philip Morris upped its offer for company to £1.02bn. Over the weekend, PMI lifted its offer to 165p a share in cash from 150p, after private equity firm Carlyle said on Friday that it had sweetened its bid for Vectura to 155p a share, or £958m.

Elsewhere, Deliveroo shares surged after German rival Delivery Hero took a 5.09% stake in the company. Delivery Hero now owns just under 87.4m Deliveroo shares.

Market Movers

FTSE 100 (UKX) 7,105.84 -0.24%
FTSE 250 (MCX) 23,413.90 -0.18%
techMARK (TASX) 4,609.34 -0.19%

FTSE 100 - Risers

SSE (SSE) 1,572.50p 1.71%
Pershing Square Holdings Ltd NPV (PSH) 2,610.00p 1.36%
Evraz (EVR) 619.40p 0.95%
Severn Trent (SVT) 2,790.00p 0.72%
Reckitt Benckiser Group (RKT) 5,659.00p 0.69%
United Utilities Group (UU.) 1,062.00p 0.62%
Barclays (BARC) 183.60p 0.51%
Sainsbury (J) (SBRY) 290.20p 0.48%
Aviva (AV.) 400.90p 0.45%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,559.00p 0.44%

FTSE 100 - Fallers

Hargreaves Lansdown (HL.) 1,506.50p -8.17%
Entain (ENT) 1,901.00p -1.45%
Informa (INF) 506.20p -1.40%
International Consolidated Airlines Group SA (CDI) (IAG) 171.04p -1.38%
Weir Group (WEIR) 1,663.00p -1.36%
BP (BP.) 303.40p -1.32%
Smiths Group (SMIN) 1,449.00p -1.23%
Rolls-Royce Holdings (RR.) 111.06p -1.21%
ITV (ITV) 115.75p -1.20%
Coca-Cola HBC AG (CDI) (CCH) 2,665.00p -1.04%

FTSE 250 - Risers

Capita (CPI) 41.51p 3.62%
Vectura Group (VEC) 167.80p 2.32%
Kainos Group (KNOS) 1,788.00p 2.05%
Rank Group (RNK) 171.80p 1.66%
Frasers Group (FRAS) 595.50p 1.45%
4Imprint Group (FOUR) 2,805.00p 1.26%
Clarkson (CKN) 3,305.00p 1.23%
Greggs (GRG) 2,894.00p 1.19%
Cairn Energy (CNE) 169.90p 1.01%
Fidelity China Special Situations (FCSS) 358.00p 0.99%

FTSE 250 - Fallers

Energean (ENOG) 664.50p -3.20%
Tullow Oil (TLW) 46.03p -2.93%
Elementis (ELM) 146.20p -2.27%
Centamin (DI) (CEY) 99.10p -2.27%
TUI AG Reg Shs (DI) (TUI) 326.60p -2.16%
Wood Group (John) (WG.) 221.90p -2.12%
TI Fluid Systems (TIFS) 309.00p -2.06%
Harbour Energy (HBR) 343.00p -1.86%
Pagegroup (PAGE) 611.50p -1.85%
easyJet (EZJ) 834.80p -1.83%