London open: Stocks edge down despite better-than-expected China data

London stocks edged lower in early trade on Tuesday following gains in the previous session, despite the release of better-than-expected Chinese trade data.

At 0855 BST, the FTSE 100 was down 0.2% at 7,174.17.

Figures released earlier out of China showed that the unadjusted trade surplus rose to $58.3bn in August from $56.6bn in July, coming in better than consensus expectations for a decline to $53.2bn.

Export growth rose to 25.6% year-over-year from 19.3% in July, which was ahead of consensus expectations for a slowdown to 17.3%. Meanwhile, import growth increased to 33.1% y/y in August from 28.1% the month before, versus expectations for a slowdown to 26.9%.

On home shores, a survey released by Halifax showed house prices hit a record high in August, although the pace of annual growth slowed.

The cost of a property rose 7.1% on the year to £262,954 - the highest level on record. However, this was down from 7.6% growth in July and marked the slowest growth in five months. Still, compared to June 2020, when the housing market began to reopen from the first lockdown, prices remain more than £23,600 higher, or +9.9%.

On a monthly basis, house prices were 0.7% higher in August, having risen 0.4% in July.

Halifax managing director Russell Galley, said: "Much of the impact from the stamp duty holiday has now left the market, as highlighted by the drop in industry transaction numbers compared to a year ago. However, while such Government schemes have provided vital stimulus, there have also been other significant drivers of house price inflation.

"We believe structural factors have driven record levels of buyer activity - such as the demand for more space amid greater home working. These trends look set to persist and the price gains made since the start of the pandemic are unlikely to be reversed once the remaining tax break comes to an end later this month."

In equity markets, TP ICAP lost ground after it said annual revenue at constant currency would be broadly unchanged despite falling profit and income in the first half of the year. Pre-tax profit declined to £28m in the six months to the end of June from £78m a year earlier as revenue dropped to £936m from £990m.

Integrafin was in the red after founder Michael Howard sold a 1.1% stake in the company.

On the upside, packaging group DS Smith gained after it said trading was continuing to strengthen due to high demand for its boxes despite rising transportation and energy costs.

Vistry rallied as the housebuilder lifted its full-year profit expectations as it posted a rise in first-half profit and revenue, hailing a better-than-expected performance amid "positive" demand. The housebuilder said it was "well positioned for the full year" as it lifted its expectations for adjusted profit pre-tax profit to around £345m, which is 5% ahead of consensus market expectations.

Marks & Spencer was boosted by an upgrade to ‘buy’ from ‘neutral’ at UBS, which said its analysis suggests further earnings upside.

Market Movers

FTSE 100 (UKX) 7,174.17 -0.18%
FTSE 250 (MCX) 24,239.38 -0.04%
techMARK (TASX) 4,864.98 -0.28%

FTSE 100 - Risers

Smith (DS) (SMDS) 461.30p 2.58%
Burberry Group (BRBY) 1,957.50p 1.16%
Phoenix Group Holdings (PHNX) 635.80p 0.92%
Flutter Entertainment (CDI) (FLTR) 14,705.00p 0.72%
Anglo American (AAL) 3,100.50p 0.71%
Hikma Pharmaceuticals (HIK) 2,621.00p 0.69%
Johnson Matthey (JMAT) 2,953.00p 0.54%
Glencore (GLEN) 339.90p 0.50%
Rio Tinto (RIO) 5,363.00p 0.49%
Associated British Foods (ABF) 1,971.00p 0.48%

FTSE 100 - Fallers

Ocado Group (OCDO) 1,993.00p -1.19%
Hargreaves Lansdown (HL.) 1,483.50p -1.07%
B&M European Value Retail S.A. (DI) (BME) 543.80p -1.02%
HSBC Holdings (HSBA) 384.00p -0.84%
Antofagasta (ANTO) 1,422.50p -0.84%
Intermediate Capital Group (ICP) 2,280.00p -0.83%
Admiral Group (ADM) 3,481.00p -0.83%
3i Group (III) 1,329.00p -0.75%
Ferguson (FERG) 10,685.00p -0.74%
Berkeley Group Holdings (The) (BKG) 4,765.50p -0.72%

FTSE 250 - Risers

Vistry Group (VTY) 1,287.50p 5.23%
Marks & Spencer Group (MKS) 186.60p 3.07%
Apax Global Alpha Limited (APAX) 217.50p 2.59%
Syncona Limited NPV (SYNC) 188.60p 2.39%
Cineworld Group (CINE) 67.76p 1.74%
Cairn Energy (CNE) 198.00p 1.54%
AO World (AO.) 230.60p 1.23%
Pantheon International (PIN) 2,920.00p 1.21%
4Imprint Group (FOUR) 3,035.00p 1.17%
ICG Enterprise Trust (ICGT) 1,224.00p 1.16%

FTSE 250 - Fallers

TP Icap Group (TCAP) 188.54p -4.32%
IntegraFin Holding (IHP) 566.00p -4.07%
National Express Group (NEX) 243.20p -2.72%
Biffa (BIFF) 407.00p -2.16%
Micro Focus International (MCRO) 425.50p -1.98%
Harbour Energy (HBR) 369.20p -1.91%
Bytes Technology Group (BYIT) 550.50p -1.52%
Network International Holdings (NETW) 373.40p -1.32%
Genus (GNS) 5,995.00p -1.24%
Dechra Pharmaceuticals (DPH) 4,858.00p -1.22%