London open: Stocks edge lower ahead of busy earnings week
London stocks edged lower in early trade on Monday as investors looked ahead to a busy week of corporate news.
At 0825 BST, the FTSE 100 was down 0.4% at 6,996.68, after China’s Hang Seng slumped 3.4%, while the Shanghai Composite index declined 2.3% as the country continued its crackdown on technology companies.
China announced strict new restrictions on education tech firms, while Tencent was ordered to give up its exclusive music licensing rights and fined for anti-competitive behaviour.
On home turf, investors were eyeing a packed corporate calendar this week.
Richard Hunter, head of markets at Interactive Investor, said: "Markets face a stern test this week ahead of an avalanche of corporate earnings, with high expectations attached.
"Barclays, Lloyds Banking and NatWest all report after their US counterparts provided clues on what to expect having reported earlier this month. In particular, there could be further large releases of impairment provisions as economic recovery has proved stronger than expected, lessening the levels of bad debts. For those with an investment banking operation, there could also be a further boost to earnings given the heightened levels of M&A activity and IPOs. In any event, given that the banks are each strongly capitalised going into the numbers, strong earnings could prompt further dividend increases, particularly with the regulatory shackles having been lifted.
"Results are also expected from GlaxoSmithKline and AstraZeneca, Royal Dutch Shell, ITV, BT and International Consolidated Airlines in what will be a decisive week in driving nearer term sentiment. With the FTSE100 ahead by 8.4% and the more domestically-focused FTSE250 by 11.4% so far this year, investors will be pinning their hopes on markets making further earnings-driven progress."
In equity markets, discount retailer B&M European Value Retail was knocked lower by a downgrade to ‘sector perform’ from ‘outperform’ at RBC Capital Markets, which argued there was more valuation upside for several other general retailers.
On the upside, food producer Cranswick ticked higher as it reported a rise in first-quarter revenue, driven by strong retail demand and increased poultry sales.
Budget airline Ryanair gained ground after it reported a widening of its first-quarter losses as it continued to be impacted by Covid restrictions, but lifted its traffic forecast as bookings have surged in recent weeks.
Market Movers
FTSE 100 (UKX) 6,996.68 -0.44%
FTSE 250 (MCX) 22,824.69 -0.26%
techMARK (TASX) 4,480.62 -0.27%
FTSE 100 - Risers
Antofagasta (ANTO) 1,452.00p 1.04%
Intermediate Capital Group (ICP) 2,257.00p 0.85%
Rolls-Royce Holdings (RR.) 96.38p 0.78%
Rio Tinto (RIO) 5,968.00p 0.71%
Whitbread (WTB) 3,048.00p 0.49%
Polymetal International (POLY) 1,526.00p 0.39%
Anglo American (AAL) 2,970.00p 0.20%
Glencore (GLEN) 316.25p 0.16%
BHP Group (BHP) 2,261.50p 0.16%
International Consolidated Airlines Group SA (CDI) (IAG) 168.72p 0.15%
FTSE 100 - Fallers
B&M European Value Retail S.A. (DI) (BME) 569.00p -1.45%
Taylor Wimpey (TW.) 164.00p -1.35%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,024.00p -1.28%
Barclays (BARC) 165.24p -1.12%
Melrose Industries (MRO) 156.65p -1.04%
JD Sports Fashion (JD.) 919.20p -1.03%
Hargreaves Lansdown (HL.) 1,616.00p -1.01%
Standard Chartered (STAN) 427.40p -1.00%
Experian (EXPN) 3,113.00p -0.99%
NATWEST GROUP PLC ORD 100P (NWG) 197.15p -0.98%
FTSE 250 - Risers
PureTech Health (PRTC) 352.00p 2.18%
OSB Group (OSB) 475.60p 1.75%
Airtel Africa (AAF) 83.65p 1.70%
Pets at Home Group (PETS) 496.00p 1.51%
VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 456.00p 1.00%
Bytes Technology Group (BYIT) 460.80p 0.83%
Trustpilot Group (TRST) 354.60p 0.74%
John Laing Group (JLG) 402.00p 0.70%
Convatec Group (CTEC) 264.00p 0.57%
Centamin (DI) (CEY) 100.55p 0.55%
FTSE 250 - Fallers
Cineworld Group (CINE) 60.18p -5.08%
Tullow Oil (TLW) 45.09p -2.57%
Fidelity China Special Situations (FCSS) 361.50p -2.56%
Wood Group (John) (WG.) 204.60p -2.25%
Bodycote (BOY) 850.00p -2.24%
Aston Martin Lagonda Global Holdings (AML) 1,812.00p -1.66%
Ultra Electronics Holdings (ULE) 3,218.00p -1.59%
PZ Cussons (PZC) 253.50p -1.55%
CMC Markets (CMCX) 444.00p -1.55%
IP Group (IPO) 116.00p -1.53%