London open: Stocks fall after disappointing China trade data

London stocks fell on Tuesday after China trade data missed expectations and the World Bank cut global growth forecasts.

China's global trade surplus widened to $49.98bn in May from April's $45.6bn, missing estimates of $55.70bn. Exports fell 4.1%, compared to analysts’ forecast for a 4% drop and the previous month’s 1.8% slide. Imports dipped 0.4% in May but it was an improvement on April’s 10.9% plunge and better than expectations for a 6.8% decrease.

“China data is continuing to follow a downside trajectory and this noticeable decline in exports has reinforced the concerns over the slowing pace of economic growth,” said FXTM Research Analyst Lukman Otunuga.

At the same time China's central bank slashed its forecast for exports to a drop of 1% this year compared to a previous estimate of 3.1% growth. However, the People's Bank of China said the economy will still grow 6.8% this year as it sees domestic recovery remaining on track.

The World Bank cut its 2016 global growth forecasts to 2.4% from its January estimate of 2.9% amid persistently low commodity prices, weak trade and sluggish demand in advanced economies.

In its latest Global Economic Prospects report, the World Bank said emerging economies accounted for half of the downward revision as these markets have struggled to adapt to lower prices for commodities.

Meanwhile, oil prices were mixed following a two-day rally as supply disruptions in Nigeria and Canada helped ease the global glut of crude output.

Brent crude fell 0.09% to $51.39 per barrel while West Texas Intermediate rose 0.04% to $50.38 per barrel at 0834 BST.

The American Petroleum Institute said late on Tuesday that commercial crude inventories fell by 3.6 million barrels last week, compared with expectations for a 2.7 million barrel draw.

The Energy Information Administration will release data on US weekly crude inventories at 1530 BST.

UK industrial and manufacturing output data is also on the agenda at 0930 BST along with the latest gross domestic product estimate from NIESER.

On the corporate front, Sainsbury's jumped after reporting a better-than-expected 0.8% like-for-like drop in first quarter sales.

Royal Dutch Shell edged higher as RBC Capital raised its target price on the stock to 2,000p from 1,900p and reiterated an ‘outperform’ rating.

Mining stocks were also on the rise as metal prices gained. Fresnillo, Antofagasta, Randgold Resources and Anglo American rallied.

AO World was in the red after saying its full year loss widened on the back of trading losses incurred in Germany and start-up costs in other European territories.

WH Smith dipped after it said like-for-like sales in the 14 weeks to 4 June 2016 as High Street sales fell, offset slightly by an increase in sales at the travel business.

Market Movers

FTSE 100 (UKX) 6,276.30 -0.13%
FTSE 250 (MCX) 17,172.73 -0.13%
techMARK (TASX) 3,129.42 -0.27%

FTSE 100 - Risers

Sainsbury (J) (SBRY) 253.20p 2.63%
Coca-Cola HBC AG (CDI) (CCH) 1,435.00p 1.77%
Fresnillo (FRES) 1,168.00p 1.65%
Antofagasta (ANTO) 446.10p 1.36%
Tesco (TSCO) 158.90p 1.34%
Anglo American (AAL) 674.30p 1.32%
Glencore (GLEN) 141.65p 1.18%
Randgold Resources Ltd. (RRS) 6,340.00p 1.04%
Burberry Group (BRBY) 1,112.00p 0.91%
Rolls-Royce Holdings (RR.) 611.00p 0.74%

FTSE 100 - Fallers

Worldpay Group (WI) (WPG) 276.30p -1.46%
Royal Bank of Scotland Group (RBS) 226.80p -1.26%
Sky (SKY) 930.00p -1.17%
Lloyds Banking Group (LLOY) 69.57p -0.97%
Mondi (MNDI) 1,347.00p -0.96%
Legal & General Group (LGEN) 231.10p -0.94%
easyJet (EZJ) 1,507.00p -0.92%
Barclays (BARC) 178.60p -0.92%
Prudential (PRU) 1,310.50p -0.87%
London Stock Exchange Group (LSE) 2,630.00p -0.87%

FTSE 250 - Risers

Workspace Group (WKP) 869.50p 4.44%
Vedanta Resources (VED) 401.90p 2.63%
3i Infrastructure (3IN) 171.00p 2.40%
Millennium & Copthorne Hotels (MLC) 426.10p 2.30%
Centamin (DI) (CEY) 112.40p 1.90%
Drax Group (DRX) 323.90p 1.86%
Euromoney Institutional Investor (ERM) 972.00p 1.73%
Greencore Group (GNC) 329.50p 1.67%
CLS Holdings (CLI) 1,598.00p 1.65%
Paragon Group Of Companies (PAG) 313.90p 1.52%

FTSE 250 - Fallers

Intermediate Capital Group (ICP) 638.50p -4.20%
Paysafe Group (PAYS) 387.00p -2.89%
Aberdeen Asset Management (ADN) 269.70p -2.78%
Evraz (EVR) 123.90p -2.67%
Smith (DS) (SMDS) 385.60p -2.36%
Hastings Group Holdings (HSTG) 185.00p -1.54%
Tullow Oil (TLW) 249.50p -1.38%
Auto Trader Group (AUTO) 397.30p -1.37%
PayPoint (PAY) 985.50p -1.25%
Galliford Try (GFRD) 1,299.00p -1.22%