London open: Stocks fall after weekend events; Aston Martin surges
London stocks fell in early trade on Monday as a failed coup against Putin over the weekend dented sentiment.
At 0905 BST, the FTSE 100 was down 0.5% at 7,423.14.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "The weekend rebellion which rocked Russia has sent the price of oil higher, as traders assess the regime’s instability following the insurgency. Brent crude jumped by more than 1% before retreating a little, amid expectations of tighter supply.
"Despite the sanctions by Western powers, Russia is still one of the world’s largest oil producers, with China and India key customers. Putin has been judged to be significantly weakened following the Wagner group’s actions and uncertainty has thrown light on potential production issues ahead if more unrest follows.
"However, concerns about the effect of high interest rates in major economies on growth and China’s recovery losing steam are still set to keep a lid on prices going forward.
"Equities are set for a lacklustre bout of trading with the unstable political situation in Russia adding to the uncertainties surrounding the prospects for the global economy.
"The heightened tensions have stepped up appetite for gold, which has risen further from three-month lows, up above $1,926 an ounce. Investors are adding ballast to their portfolios and taking more defensive positions as geo-political developments bring fresh winds of uncertainty. This more cautious stance is likely to continue as investors wait for further signs about the path of inflation."
In equity markets, Associated British Foods was a touch weaker even as it lifted its annual guidance as it said third-quarter sales at fashion chain Primark grew 13%, driven by strong summer sales and higher prices as customers seek value for money amid the cost-of-living crisis.
Lloyds was under the cosh after a downgrade to ‘underweight’ from ‘neutral’ at JPMorgan.
Cineworld tumbled after saying it will file for administration as part of a proposed restructuring plan.
On the upside, Aston Martin surged to the top of the FTSE 250 as the luxury car maker said it was entering the electric vehicle market after signing a strategic supply agreement with Lucid Group.
Market Movers
FTSE 100 (UKX) 7,423.14 -0.52%
FTSE 250 (MCX) 17,954.07 -0.60%
techMARK (TASX) 4,453.53 -0.63%
FTSE 100 - Risers
Sainsbury (J) (SBRY) 259.40p 0.86%
Antofagasta (ANTO) 1,460.00p 0.52%
Tesco (TSCO) 249.60p 0.32%
Croda International (CRDA) 5,580.00p 0.29%
Halma (HLMA) 2,265.00p 0.27%
GSK (GSK) 1,428.80p 0.25%
Next (NXT) 6,628.00p 0.24%
Severn Trent (SVT) 2,689.00p 0.22%
Auto Trader Group (AUTO) 592.80p 0.20%
B&M European Value Retail S.A. (DI) (BME) 570.80p 0.14%
FTSE 100 - Fallers
BAE Systems (BA.) 909.80p -2.99%
Airtel Africa (AAF) 109.30p -2.32%
Barclays (BARC) 142.28p -2.02%
Beazley (BEZ) 559.00p -1.93%
Ocado Group (OCDO) 527.40p -1.90%
Melrose Industries (MRO) 485.00p -1.80%
Lloyds Banking Group (LLOY) 41.57p -1.76%
International Consolidated Airlines Group SA (CDI) (IAG) 156.40p -1.60%
Smurfit Kappa Group (CDI) (SKG) 2,572.00p -1.53%
Hiscox Limited (DI) (HSX) 1,050.00p -1.50%
FTSE 250 - Risers
Aston Martin Lagonda Global Holdings (AML) 370.00p 13.08%
Ferrexpo (FXPO) 89.10p 5.19%
Abrdn Private Equity Opportunities Trust (APEO) 454.50p 3.30%
Spirent Communications (SPT) 170.30p 1.25%
Octopus Renewables Infrastructure Trust (ORIT) 91.40p 1.22%
TUI AG Reg Shs (DI) (TUI) 550.00p 0.92%
Cranswick (CWK) 3,226.00p 0.81%
Pantheon International (PIN) 256.00p 0.79%
Scottish American Inv Company (SAIN) 518.00p 0.78%
Auction Technology Group (ATG) 711.00p 0.71%
FTSE 250 - Fallers
Molten Ventures (GROW) 230.40p -4.08%
Hammerson (HMSO) 23.18p -3.01%
UK Commercial Property Reit Limited (UKCM) 47.20p -2.98%
Discoverie Group (DSCV) 835.00p -2.57%
Balanced Commercial Property Trust Limited (BCPT) 65.20p -2.54%
Digital 9 Infrastructure NPV (DGI9) 66.60p -2.49%
Vesuvius (VSVS) 393.20p -2.38%
Ascential (ASCL) 227.80p -2.23%
Keller Group (KLR) 679.00p -2.16%
Trainline (TRN) 230.60p -2.12%