London open: Stocks in the red as miners drop on China data

Equity markets in London fell in early trade as miners took a hit from uninspiring Chinese data, and after the latest Federal Reserve minutes suggested a December rate hike was on the cards.

At 0830 BST, the FTSE 100 was down 0.8% to 6,968.95.

Meanwhile, oil prices slipped back after OPEC said oil production in September rose to its highest level in eight years. West Texas Intermediate was down 0.8% at $49.78 a barrel and Brent crude was 0.6% lower at $51.49.

Minutes of the Fed’s 20-21 September meeting showed it was a close call to keep rates on hold, with policymakers generally of the view that a move higher could be on the cards within months if the economy keeps on track.

Sentiment also took a hit from disappointing Chinese trade data, which weighed on the mining sector. Figures released earlier showed Chinese exports and imports in September missed expectations, with exports down 10% in dollar terms year-on-year and imports down 1.9%. Economists had been expecting a 3% drop in exports and a 1% rise in imports.

In yuan terms, exports were 5.6% lower on the year, while imports were up 2.2%.

BHP Billiton, Rio Tinto, Anglo American and Antofagasta were all under pressure.

In corporate news, subscription broadcaster and broadband provider Sky rallied after saying first-quarter group revenue rose 7%, while WH Smith gained ground after reporting an 8% rise in pre-tax profit for the year to the end of August.

Booker was in the black after the Londis and Budgens owner reported a jump in interim sales and profit as it hiked its dividend and expressed confidence in achieving its full-year expectations.

On the downside, Hargreaves Lansdown was weaker after it posted a rise in first quarter revenue but a drop in new business inflows as it took a hit from low investor confidence in the wake of the Brexit vote.

Unilever was also in the red after a storm broke over a supermarket pricing dispute over Marmite and several other of its brands, although the group reported solid underlying sales amid tough third-quarter conditions.

Paper and packaging group Mondi was on the back foot despite posting an increase in third-quarter underlying operating profit compared to a year ago and saying it expects to benefit from higher selling prices as it moves into 2017.

There are no major UK data releases due but US initial jobless claims are at 1330 BST.

Market Movers

FTSE 100 (UKX) 6,975.21 -0.69%
FTSE 250 (MCX) 17,847.88 -0.60%
techMARK (TASX) 3,526.86 -0.25%

FTSE 100 - Risers

Sky (SKY) 878.50p 1.62%
Randgold Resources Ltd. (RRS) 7,035.00p 1.52%
United Utilities Group (UU.) 925.00p 1.09%
Fresnillo (FRES) 1,648.00p 0.73%
National Grid (NG.) 1,053.50p 0.67%
Informa (INF) 658.00p 0.53%
Rolls-Royce Holdings (RR.) 758.00p 0.53%
Severn Trent (SVT) 2,306.00p 0.44%
Shire Plc (SHP) 5,128.00p 0.37%
Provident Financial (PFG) 3,116.00p 0.32%

FTSE 100 - Fallers

BHP Billiton (BLT) 1,184.00p -4.40%
Rio Tinto (RIO) 2,594.00p -4.19%
Standard Life (SL.) 335.00p -3.98%
Hargreaves Lansdown (HL.) 1,197.00p -3.23%
Anglo American (AAL) 1,007.00p -3.22%
Mondi (MNDI) 1,610.00p -2.78%
Tesco (TSCO) 195.75p -2.71%
Antofagasta (ANTO) 542.50p -2.52%
Glencore (GLEN) 230.75p -2.31%
Royal Bank of Scotland Group (RBS) 173.00p -2.20%

FTSE 250 - Risers

Hochschild Mining (HOC) 263.60p 4.60%
Tullow Oil (TLW) 269.80p 2.12%
G4S (GFS) 235.40p 1.95%
WH Smith (SMWH) 1,550.00p 1.64%
Capital & Counties Properties (CAPC) 271.00p 1.38%
Millennium & Copthorne Hotels (MLC) 447.50p 1.24%
UK Commercial Property Trust (UKCM) 79.15p 1.15%
Pagegroup (PAGE) 382.70p 0.74%
Countryside Properties (CSP) 236.80p 0.72%
National Express Group (NEX) 356.40p 0.68%

FTSE 250 - Fallers

Mitie Group (MTO) 197.50p -4.31%
esure Group (ESUR) 287.80p -3.91%
Close Brothers Group (CBG) 1,340.00p -3.53%
OneSavings Bank (OSB) 258.00p -2.82%
Allied Minds (ALM) 358.70p -2.79%
Hays (HAS) 137.10p -2.77%
Brown (N.) Group (BWNG) 195.00p -2.69%
Vedanta Resources (VED) 634.00p -2.61%
Metro Bank (MTRO) 2,552.00p -2.41%
Evraz (EVR) 211.60p -2.35%