London open: Stocks hit by weak data from Japan, China and Germany

A steeper-than-expected recession in Japan and poor data from China and Germany dampened market sentiment on Monday, with UK stocks starting the week on the back foot.

London's FTSE 100 was trading 0.5% lower at 6,712 early on after closing out last week at 6,742.84, its highest close since 21 November.

The contraction in Japanese gross domestic product (GDP) was worse than originally thought in the July-September period, as investment and public spending increased by less than expected.

Japanese GDP shrank at an annual rate of 1.9%, according to the Japanese Cabinet Office, compared with the initial estimate of a 1.6% contraction.

In other economic news, China's trade surplus rose to a record high in November, but growth in exports slowed dramatically and imports declined. Chinese imports fell at a 6.7% year-on-year clip in November, versus a rise of 4.7% in October, while annual export growth slowed to 4.7% from 10.6% the month before.

Meanwhile, German industrial production increased by just 0.2% in October, disappointing analysts who had expected 0.4% growth. September's data was also revised lower to show an increase of 1.1%, compared with the initial 1.4% estimate.

Sainsbury's gains on takeover hopes

UK grocery chain J Sainsbury was on the rise after reports that an activist fund is talking with investors about buying up shares in the retailer. The Sunday Telegraph said Crystal Amber is looking to build a stake "as part of a bold plan that could see an attempt to engineer a takeover of the supermarket giant".

Mining stocks were mostly lower with heavyweights BHP Billiton, Anglo American, Rio Tinto and Glencore trading in the red.

Precious metal producers Randgold Resources and Acacia Mining, however, were making gains as gold and silver prices advanced. Randgold and Acacia were also boosted by Deutsche Bank which lifted its ratings on the stocks to 'buy'.

Insurer Esure edged lower after agreeing to buy the remaining 50% stake of price-comparison group Gocompare.com for £95m. The deal will increase Esure's ownership of Newport-based Gocompare to 100% after its initial investment in 2010.

Market Movers

techMARK 2,979.31 -0.02%

FTSE 100 6,712.27 -0.45%

FTSE 250 15,989.02 -0.09%

FTSE 100 - Risers

Randgold Resources Ltd. (RRS) 4,279.00p +2.15%

Sainsbury (J) (SBRY) 242.00p +1.55%

Tullow Oil (TLW) 402.10p +1.54%

Intertek Group (ITRK) 2,349.00p +1.29%

ARM Holdings (ARM) 957.00p +1.11%

BG Group (BG.) 913.90p +0.71%

Fresnillo (FRES) 724.50p +0.69%

Petrofac Ltd. (PFC) 782.50p +0.58%

St James's Place (STJ) 826.00p +0.55%

TUI Travel (TT.) 452.10p +0.47%

FTSE 100 - Fallers

Marks & Spencer Group (MKS) 482.50p -2.90%

easyJet (EZJ) 1,724.00p -2.10%

Hargreaves Lansdown (HL.) 974.50p -1.67%

Weir Group (WEIR) 1,809.00p -1.58%

Mondi (MNDI) 1,086.00p -1.45%

SABMiller (SAB) 3,373.50p -1.42%

Aberdeen Asset Management (ADN) 461.80p -1.26%

BHP Billiton (BLT) 1,457.00p -1.15%

Associated British Foods (ABF) 3,248.00p -1.10%

Intu Properties (INTU) 346.90p -1.03%

FTSE 250 - Risers

Acacia Mining (ACA) 244.20p +3.30%

Fidelity China Special Situations (FCSS) 137.50p +2.31%

Rank Group (RNK) 164.00p +1.55%

Premier Oil (PMO) 192.00p +1.48%

Howden Joinery Group (HWDN) 414.50p +1.39%

Zoopla Property Group (WI) (ZPLA) 200.00p +1.27%

Thomas Cook Group (TCG) 128.10p +1.10%

Laird (LRD) 310.50p +1.07%

Grafton Group Units (GFTU) 661.00p +1.07%

Playtech (PTEC) 665.50p +1.06%

FTSE 250 - Fallers

Hochschild Mining (HOC) 82.00p -4.93%

Afren (AFR) 44.80p -2.31%

Saga (SAGA) 151.40p -2.26%

Ophir Energy (OPHR) 136.00p -1.52%

Vedanta Resources (VED) 668.50p -1.47%

Nostrum Oil & Gas (NOG) 552.00p -1.43%

Morgan Advanced Materials (MGAM) 301.00p -1.41%

Spire Healthcare Group (SPI) 330.80p -1.40%

Wetherspoon (J.D.) (JDW) 811.50p -1.34%

Homeserve (HSV) 323.50p -1.34%