London open: Stocks in the red as investors eye OPEC

Stocks in London were weaker at the open, taking their cue from a downbeat session in Asia as investors looked ahead to this week’s OPEC meeting in Algeria and a debate later in the day between Hillary Clinton and Donald Trump.

At 0825 BST, the FTSE 100 was down 1% to 6,843.20.

Meanwhile, oil prices were a touch higher after Algeria’s energy minister Noureddine Bouterfa said on Sunday that all options for a production cut or freeze as this week’s OPEC meeting were on the table. Bouterfa said: "We will not come out of the meeting empty-handed.”

Oil prices had tumbled at the end of last week amid reports that Saudi Arabia was not expecting a deal to be made the meeting.

West Texas Intermediate was up 0.5% at $44.72 a barrel and Brent crude was 0.5% higher at $46.12.

CMC Markets’ Michael Hewson said: “This week’s gathering in Algiers between OPEC and non OPEC members has been on the markets radar for quite some time now, as the various actors stake out their positions with respect to a production freeze. Venezuela’s President Nicolas Maduro set the ball rolling last week, claiming he had secured an undertaking from Iran’s President Rouhani about the potential for action on rising output.

“This seems highly unlikely but it helped underpin the oil price for most of last week, with some chatter suggesting that Saudi Arabia might also be open to a deal if Iran capped its own output.”

As far at the US debate is concerned, Hewson said a good performance from Trump could see market volatility increase particularly if investors think there is a possibility that he could actually win.

In corporate news, Icap was on the back foot after it said that highly experienced operating director Ken Pigaga has had second thoughts about moving to Tullett Prebon along with colleagues as part of its voice broking acquisition.

Capital & Counties Properties was in the red as it said its subsidiary Covent Garden Holdings agreed to a placement of £175m 10-year and 12-year senior unsecured notes with five US investors, in order to strengthen the company’s capital structure and provide greater financial flexibility.

Lloyds Banking Group was under the cosh after a downgrade by Goldman Sachs, while Hays and InterContinental Hotels were hit by downgrades from RBC Capital Markets and Morgan Stanley, respectively. Shire was also lower after HSBC downgraded the stock to ‘hold’ from ‘buy’.

On the macroeconomic front, BBA loans for house purchase data is at 0930 BST, while in the US, new home sales are at 1500 BST.

Market Movers

FTSE 100 (UKX) 6,863.24 -0.67%
FTSE 250 (MCX) 17,768.45 -0.86%
techMARK (TASX) 3,506.36 -0.57%

FTSE 100 - Risers

Mediclinic International (MDC) 954.50p 0.69%
Informa (INF) 715.50p 0.63%
Burberry Group (BRBY) 1,404.00p 0.21%
Vodafone Group (VOD) 220.75p 0.02%
Rio Tinto (RIO) 2,518.00p -0.04%
Imperial Brands (IMB) 3,986.00p -0.09%
BHP Billiton (BLT) 1,097.00p -0.09%
Micro Focus International (MCRO) 2,122.00p -0.09%
SABMiller (SAB) 4,448.00p -0.10%
Associated British Foods (ABF) 2,661.00p -0.15%

FTSE 100 - Fallers

InterContinental Hotels Group (IHG) 3,171.00p -3.47%
Kingfisher (KGF) 375.20p -2.01%
Taylor Wimpey (TW.) 152.80p -1.74%
International Consolidated Airlines Group SA (CDI) (IAG) 399.70p -1.50%
Sainsbury (J) (SBRY) 250.10p -1.50%
BP (BP.) 430.45p -1.48%
Barratt Developments (BDEV) 490.70p -1.31%
Royal Dutch Shell 'B' (RDSB) 1,928.50p -1.31%
Travis Perkins (TPK) 1,526.00p -1.29%
Royal Dutch Shell 'A' (RDSA) 1,841.00p -1.29%

FTSE 250 - Risers

Hastings Group Holdings (HSTG) 229.90p 1.32%
F&C Commercial Property Trust Ltd. (FCPT) 127.15p 0.99%
International Personal Finance (IPF) 278.20p 0.94%
TR Property Inv Trust (TRY) 315.50p 0.83%
Redefine International (RDI) 42.75p 0.61%
Tritax Big Box Reit (BBOX) 144.20p 0.42%
Diploma (DPLM) 880.50p 0.40%
Worldwide Healthcare Trust (WWH) 2,150.00p 0.37%
Dignity (DTY) 2,775.00p 0.36%
CMC Markets (CMCX) 216.90p 0.18%

FTSE 250 - Fallers

Indivior (INDV) 304.60p -2.84%
Daejan Holdings (DJAN) 5,655.00p -2.50%
IP Group (IPO) 174.00p -2.25%
Metro Bank (MTRO) 2,724.00p -2.19%
Brown (N.) Group (BWNG) 183.30p -2.14%
Bovis Homes Group (BVS) 856.00p -2.12%
Petrofac Ltd. (PFC) 823.50p -2.08%
Countrywide (CWD) 216.20p -1.99%
Redrow (RDW) 400.40p -1.93%
Thomas Cook Group (TCG) 71.60p -1.92%