London open: Stocks nudge up as miners rally; China data in focus

London stocks nudged up in early trade on Monday following an upbeat session in Asia, but gains were muted as investors mulled a slowdown in China’s manufacturing sector.

At 0900 BST, the FTSE 100 was up just 0.1% at 7,541.45.

Data out earlier showed that activity in China’s manufacturing sector slowed in June, with the Caixin/S&P Global purchasing managers’ index falling to 50.5 from 50.9 in May. Still, this was above consensus expectations for a reading of 50.0.

A reading above 50.0 signals expansion, while a reading below indicates contraction.

Wang Zhe, senior economist at Caixin Insight Group, said: "A slew of recent economic data suggests that China’s recovery has yet to find a stable footing, as prominent issues including a lack of internal growth drivers, weak demand and dimming prospects remain.

"Problems reflected in June’s Caixin China manufacturing PMI, ranging from an increasingly dire job market to rising deflationary pressure and waning optimism, also point to the same conclusion."

Last Friday, data from China’s National Bureau of Statistics showed the official manufacturing PMI ticked up to 49.0 in June from 48.8 in May.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "The first tentative steps into the second half of the year have been cautious on the London market. China’s factories eked out growth in June, with the latest manufacturing snapshot showing activity coming in a notch above expectations, but it still paints a picture of an economy losing steam.

"The FTSE 100 opened marginally higher, helped by the tailwinds of a strong session in Asia and on Wall Street on Friday. But it’s still struggling to find significant momentum, dragged down by concerns about growth in China and the wider global economy. Regaining its form and heading back to the heights of above 8,000 reached at the start of the year, still looks decidedly challenging."

The S&P Global/CIPS June manufacturing PMI for the UK is due at 0930 BST.

In equity markets, heavily-weighted miners were the standout gainers, with Anglo American, Rio Tinto, Glencore and Antofagasta all higher as base metals prices rose.

Tesco was in the black as it appointed Gerry Murphy as its new chair with effect from 1 September, replacing John Allan, who stepped down due to allegations of misconduct.

Elsewhere, AstraZeneca slumped as it announced the results of a high-level study of a new lung cancer drug.

Market Movers

FTSE 100 (UKX) 7,541.45 0.13%
FTSE 250 (MCX) 18,484.16 0.37%
techMARK (TASX) 4,439.84 -0.56%

FTSE 100 - Risers

Anglo American (AAL) 2,282.50p 2.22%
BP (BP.) 466.50p 1.78%
Smith (DS) (SMDS) 276.50p 1.73%
Glencore (GLEN) 452.00p 1.69%
NATWEST GROUP (NWG) 244.80p 1.66%
Ocado Group (OCDO) 577.20p 1.62%
Rio Tinto (RIO) 5,059.00p 1.47%
Antofagasta (ANTO) 1,482.50p 1.47%
Lloyds Banking Group (LLOY) 44.19p 1.39%
Barclays (BARC) 155.42p 1.33%

FTSE 100 - Fallers

AstraZeneca (AZN) 10,686.00p -5.23%
Smith & Nephew (SN.) 1,231.00p -2.92%
Flutter Entertainment (CDI) (FLTR) 15,600.00p -1.27%
Halma (HLMA) 2,255.00p -0.97%
3i Group (III) 1,930.00p -0.95%
Endeavour Mining (EDV) 1,870.00p -0.80%
Entain (ENT) 1,262.00p -0.79%
Severn Trent (SVT) 2,549.00p -0.66%
B&M European Value Retail S.A. (DI) (BME) 553.40p -0.65%
Melrose Industries (MRO) 503.20p -0.59%

FTSE 250 - Risers

SDCL Energy Efficiency Income Trust (SEIT) 77.00p 3.77%
Chemring Group (CHG) 292.00p 3.18%
Harbour Energy (HBR) 235.30p 2.93%
Mobico Group (MCG) 99.95p 2.78%
Capita (CPI) 28.18p 2.70%
Ibstock (IBST) 143.60p 2.64%
Helios Towers (HTWS) 95.50p 2.58%
Tritax Eurobox (GBP) (EBOX) 52.20p 2.15%
Bakkavor Group (BAKK) 97.00p 2.11%
Carnival (CCL) 1,326.50p 2.00%

FTSE 250 - Fallers

Dunelm Group (DNLM) 1,096.00p -2.23%
Molten Ventures (GROW) 263.00p -1.57%
Bridgepoint Group (Reg S) (BPT) 199.70p -1.43%
Ithaca Energy (ITH) 149.40p -1.19%
Hipgnosis Songs Fund Limited NPV (SONG) 79.00p -1.00%
Tate & Lyle (TATE) 719.00p -0.96%
Diploma (DPLM) 2,956.00p -0.94%
Softcat (SCT) 1,404.00p -0.85%
Impax Environmental Markets (IEM) 407.00p -0.73%
Smithson Investment Trust (SSON) 1,390.00p -0.71%