London open: Stocks nudge lower ahead of retail sales data

Stocks in London nudged a touch lower in early trade as investors sifted through earnings ahead of UK retail sales data and the European Central Bank rate announcement.

At 0830 BST, the FTSE 100 was down 0.2% to 7,007.89.

Meanwhile, oil prices retreated following a strong rally in the previous session after data from the US Energy Information Administration showed a surprise 5.2m drawdown in crude inventories to 468.7m barrels last week and amid growing expectations of an OPEC-led production cut.

West Texas Intermediate was down 0.8% to $51.17 a barrel and Brent crude was off 0.7% at $52.30.

UK retail sales are due at 0930 BST, while the ECB rate announcement is at 1245 BST. In the US, initial jobless claims are at 1330 BST, along with the Philadelphia Fed survey. Leading indicators and existing home sales are at 1500 BST.

CMC Markets’ Michael Hewson said the retail sales numbers “should give us a good indication as to how Q3 has panned out in terms of the performance of the UK economy”.

“July retail sales rose 1.9%, and though the August numbers showed a small decline of 0.2%, the September numbers, if they come in as expected are expected to point to a strong Q3 performance for the UK economy. Expectations are for a rise of 0.3%, which would translate into a fairly positive Q3.”

As far the ECB announcement is concerned, no change to policy is expected. However, president Mario Draghi is likely to face some questions about reports of a tapering programme.

In corporate news, London Stock Exchange inched higher after it reported a rise in income and revenue for the three months to the end of September.

Rio Tinto edged up despite lowering its iron ore shipment guidance slightly after it fell 5% the third quarter, reduced by port and rail maintenance.

Anglo-Swiss miner Glencore ticked lower after announcing plans to sell its rail coal haulage business in the New South Wales Hunter Valley for $1.14bn to Genesee & Wyoming Australia.

Engineering solutions group Senior tumbled after warning that its performance for the full year 2016 is likely to be lower than previously expected amid challenging market conditions in truck and off-highway and oil and gas markets.

FTSE 250 ground engineering company Keller tanked as it cautioned that its full-year 2016 underlying results will be around 15% below current market expectations, mainly due to underperformance in the Asia Pacific division.

Shares in cyber security and risk mitigation group NCC Group nosedived after it warned that profits growth will be hit by "a number of setbacks" in its assurance division that included the cancellation of three large contracts the deferral of another and delays with other contract renewals.

Market Movers

FTSE 100 (UKX) 7,012.73 -0.13%
FTSE 250 (MCX) 17,974.55 -0.37%
techMARK (TASX) 3,501.63 -0.72%

FTSE 100 - Risers

International Consolidated Airlines Group SA (CDI) (IAG) 403.90p 2.75%
easyJet (EZJ) 944.00p 1.94%
Barclays (BARC) 179.40p 1.13%
Prudential (PRU) 1,398.00p 0.94%
Royal Bank of Scotland Group (RBS) 181.20p 0.67%
Rio Tinto (RIO) 2,640.50p 0.65%
Royal Dutch Shell 'B' (RDSB) 2,178.50p 0.65%
BHP Billiton (BLT) 1,224.50p 0.53%
Anglo American (AAL) 1,060.00p 0.52%
Standard Life (SL.) 332.20p 0.51%

FTSE 100 - Fallers

Travis Perkins (TPK) 1,386.00p -2.53%
Smiths Group (SMIN) 1,445.00p -2.36%
ITV (ITV) 175.70p -2.28%
WPP (WPP) 1,780.00p -2.20%
Rolls-Royce Holdings (RR.) 749.50p -2.15%
Intu Properties (INTU) 290.40p -1.59%
BAE Systems (BA.) 545.00p -1.54%
Fresnillo (FRES) 1,627.00p -1.45%
HSBC Holdings (HSBA) 616.20p -1.36%
Barratt Developments (BDEV) 487.60p -1.20%

FTSE 250 - Risers

International Personal Finance (IPF) 279.80p 3.86%
Homeserve (HSV) 624.00p 3.48%
Laird (LRD) 161.60p 2.02%
Barr (A.G.) (BAG) 498.00p 1.65%
Zoopla Property Group (WI) (ZPLA) 333.70p 1.64%
Dunelm Group (DNLM) 786.50p 1.61%
DFS Furniture (DFS) 258.50p 1.57%
Sports Direct International (SPD) 286.70p 1.38%
Brown (N.) Group (BWNG) 194.10p 1.30%
OneSavings Bank (OSB) 277.80p 1.24%

FTSE 250 - Fallers

NCC Group (NCC) 232.90p -32.63%
Keller Group (KLR) 690.00p -22.08%
Senior (SNR) 170.80p -16.36%
Aggreko (AGK) 901.00p -4.15%
Card Factory (CARD) 277.50p -3.34%
PayPoint (PAY) 1,061.00p -2.84%
IMI (IMI) 1,051.00p -2.14%
Marshalls (MSLH) 276.00p -2.06%
Meggitt (MGGT) 445.60p -1.66%
Hill & Smith Holdings (HILS) 1,141.00p -1.55%