London open: Stocks fall after China data; house prices rise

London stocks fell in early trade on Thursday, taking their cue from downbeat sessions in the US and Asia, after disappointing Chinese trade data.

At 0915 GMT, the FTSE 100 was down 0.4% at 7,487.73.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: "The FTSE 100 is struggling, following global markets downwards. Some of the pressure is coming from weaker than expected imports in China, which indicates a softening of demand and failed to offset optimism from better-than-forecast exports.

"A protracted period of demand malaise would send shivers through most markets, with the outlook from oil to luxury goods called into question."

Data out earlier showed that China's trade balance widened substantially more than expected in November as exports unexpectedly rose and imports registered a surprise decline.

The trade balance stood at $68.4bn last month, up from $56.5bn in October and well above the consensus forecast of $58.1bn.

Exports were up 0.5% year-on-year in November after a 6.4% annual drop the month before; analysts had expected a decline of 0.8%. Meanwhile, imports fell 0.6% after rising 3% previously, surprising analysts who had expected another 3% increase.

On home shores, figures from Halifax showed that house prices rose for the second month in a row in November, boosted by a shortage of properties.

House prices rose 0.5% on the month following a 1.2% jump in October and after six consecutive declines, leaving the price of a home at £283,615.

On a yearly basis, prices were down 1% in November, following a 3.1% drop in October.

Kim Kinnaird, director of Halifax Mortgages, said: "The resilience seen in house prices during 2023 continues to be underpinned by a shortage of properties available, rather than any significant strengthening of buyer demand. That said, recent figures for mortgage approvals suggest a slight uptick in activity levels, which is likely as a result of an improving picture on affordability for homebuyers. With mortgage rates starting to ease slightly, this may be leading to increased buyer confidence, seeing people more inclined to push ahead with their home purchases.

"However, the economic conditions remain uncertain, making it hard to assess the extent to which market activity will be maintained. Other pressures - like inflation, the broader cost of living, overall employment rates and affordability - mean we expect to see downward pressure on house prices into next year."

In equity markets, BA and Iberia owner IAG flew lower after a downgrade to ‘underweight’ from ‘neutral’ at JPMorgan.

Burberry was also under the cosh after Deutsche Bank slashed its price target on the ‘hold’ rated shares to 1,600p from 1,950p.

Vodafone fell after Exane BNP cut the shares to ‘underperform’.

DS Smith lost ground as the packaging manufacturer said chief executive Miles Roberts would be retiring no later than the end of next November and unveiled a fall in interim profit.

Media group Future tumbled as it posted a decline in full-year profits and announced the departure of chief financial and strategy officer Penny Ladkin-Brand.

Games Workshop slid as the miniature wargames manufacturer said profit and revenue for the six months to 26 November were set to rise, but that it expects a fall in licensing revenue.

On the upside, Sports Direct owner Frasers Group gained as it posted an 8% rise in interim profits, driven by a strong jump in sales at its international division.

AJ Bell surged as the investment platform hailed a record full-year performance, with pre-tax profit up 50%.

Market Movers

FTSE 100 (UKX) 7,487.73 -0.37%

FTSE 250 (MCX) 18,472.61 -1.04%

techMARK (TASX) 4,088.97 -0.32%

FTSE 100 - Risers

Severn Trent (SVT) 2,677.00p 0.79%

Melrose Industries (MRO) 545.60p 0.78%

National Grid (NG.) 1,059.00p 0.71%

Coca-Cola HBC AG (CDI) (CCH) 2,246.00p 0.63%

Frasers Group (FRAS) 913.50p 0.61%

Compass Group (CPG) 2,054.00p 0.59%

Sage Group (SGE) 1,150.50p 0.44%

Relx plc (REL) 3,104.00p 0.39%

SSE (SSE) 1,876.50p 0.35%

Rolls-Royce Holdings (RR.) 289.60p 0.35%

FTSE 100 - Fallers

International Consolidated Airlines Group SA (CDI) (IAG) 156.80p -3.15%

Entain (ENT) 785.00p -2.89%

Burberry Group (BRBY) 1,480.50p -2.21%

Smith (DS) (SMDS) 294.40p -2.00%

Prudential (PRU) 866.60p -1.97%

BT Group (BT.A) 134.00p -1.94%

Rentokil Initial (RTO) 413.60p -1.90%

St James's Place (STJ) 676.20p -1.83%

Unite Group (UTG) 971.50p -1.72%

Ocado Group (OCDO) 601.80p -1.70%

FTSE 250 - Risers

AJ Bell (AJB) 277.60p 7.60%

FDM Group (Holdings) (FDM) 412.50p 4.17%

Coats Group (COA) 70.00p 3.86%

Ruffer Investment Company Ltd Red PTG Pref Shares (RICA) 272.50p 2.44%

Tyman (TYMN) 280.00p 2.00%

Hilton Food Group (HFG) 754.00p 1.48%

FirstGroup (FGP) 166.30p 1.40%

Ferrexpo (FXPO) 73.05p 1.11%

Tate & Lyle (TATE) 642.50p 0.94%

NextEnergy Solar Fund Limited Red (NESF) 85.75p 0.88%

FTSE 250 - Fallers

Future (FUTR) 564.50p -24.93%

Games Workshop Group (GAW) 9,640.00p -9.06%

Energean (ENOG) 980.50p -4.81%

Ninety One (N91) 168.70p -4.09%

Investec (INVP) 492.40p -4.09%

CAB Payments Holdings (CABP) 54.25p -3.64%

Digital 9 Infrastructure NPV (DGI9) 31.70p -3.50%

Diversified Energy Company (DEC) 1,239.60p -3.26%

SDCL Energy Efficiency Income Trust (SEIT) 59.10p -3.11%

Liontrust Asset Management (LIO) 527.00p -3.04%