London open: Stocks slide after China inflation misses forecasts

UK stocks declined on Monday after China inflation came in worse than economists had expected, fuelling fears about the world’s second largest economy.

China’s consumer price index rose 2.3% year-on-year in March, falling shy of forecasts for 2.4% growth and remaining in line with the previous month.

The producer price index fell 4.3% in March from a year ago, compared to analysts’ estimates for a 4.6% decline and a 4.9% drop in February.

“Looking ahead, we expect consumer price inflation to remain near current levels for the rest of this year,” said Julian Evans-Pritchard, China economist at Capital Economics.

“Admittedly, the fall in oil prices during the second half of 2015 will boost energy inflation later in the year and looser monetary and fiscal policy should also support broader price pressures. That said, the recent rise in pig numbers suggests that pork price inflation should begin to ease before long, which will help keep a lid on inflation.”

Turning to Monday’s economic calendar there are no notable releases with markets awaiting the International Monetary Fund’s latest growth forecasts on Tuesday.

The IMF is expected to cut its economic growth forecasts amid a slowdown in China and lower commodity prices.

Oil prices fell ahead of a 17 April meeting between global producers to decide on whether to freeze output. At 0857 BST, Brent crude dipped 0.69% to $41.65 per barrel and West Texas Intermediate slipped 0.68% to $39.45 per barrel.

In company news, mining stocks were the biggest risers on the FTSE 100 as precious metal prices gained. Anglo American, Glencore and Rio Tinto were all in the black.

Vedanta Resources gained as it reported record annual production of aluminium, electricity, silver and Copper India cathodes in its fourth quarter production release on Monday morning, ahead of its full-year results to 31 March.

Food producer Cranswick advanced as it announced the acquisition of CCL Holdings, and its 100% owned subsidiary Crown Chicken Limited from the Thacker family and management on Monday.

Standard Chartered rallied on reports it was looking to hive-off $4.4bn (£3.1bn) in Asian assets, as the lender looked to shrink its balance sheet after being left reeling by record impairment charges.

Going the other way, housebuilders were in the red amid worries on how the upcoming Brexit vote in June will affect the market. Barratt Developments, Taylor Wimpey, Berkeley Group and Persimmon slumped.

Market Movers

FTSE 100 (UKX) 6,183.16 -0.34%
FTSE 250 (MCX) 16,782.95 -0.28%
techMARK (TASX) 3,144.29 -0.62%

FTSE 100 - Risers

Anglo American (AAL) 568.90p 3.97%
Glencore (GLEN) 141.35p 3.33%
Standard Chartered (STAN) 450.30p 1.52%
Rio Tinto (RIO) 2,017.50p 1.51%
Fresnillo (FRES) 947.00p 1.50%
Antofagasta (ANTO) 438.80p 1.18%
Tesco (TSCO) 192.50p 1.02%
Pearson (PSON) 842.50p 1.02%
Barclays (BARC) 152.10p 0.93%
Randgold Resources Ltd. (RRS) 6,690.00p 0.83%

FTSE 100 - Fallers

Direct Line Insurance Group (DLG) 353.50p -2.00%
Barratt Developments (BDEV) 537.50p -1.74%
Next (NXT) 5,425.00p -1.72%
Taylor Wimpey (TW.) 183.00p -1.72%
Paddy Power Betfair (PPB) 9,435.00p -1.56%
Berkeley Group Holdings (The) (BKG) 3,076.00p -1.54%
Persimmon (PSN) 2,034.00p -1.45%
AstraZeneca (AZN) 4,093.50p -1.28%
Vodafone Group (VOD) 224.70p -1.23%
ARM Holdings (ARM) 1,034.00p -1.15%

FTSE 250 - Risers

Evraz (EVR) 100.80p 8.27%
Kaz Minerals (KAZ) 151.00p 4.64%
Cranswick (CWK) 2,271.00p 4.13%
Amec Foster Wheeler (AMFW) 449.90p 3.43%
Acacia Mining (ACA) 297.10p 3.20%
Vedanta Resources (VED) 359.30p 2.22%
SEGRO (SGRO) 430.60p 2.16%
Centamin (DI) (CEY) 101.90p 1.80%
Zoopla Property Group (WI) (ZPLA) 244.90p 1.70%
BGEO Group (BGEO) 2,002.00p 1.62%

FTSE 250 - Fallers

Restaurant Group (RTN) 353.80p -3.33%
Galliford Try (GFRD) 1,362.00p -2.71%
Synthomer (SYNT) 356.80p -2.25%
Grainger (GRI) 223.60p -2.14%
Aggreko (AGK) 1,022.00p -2.11%
Hastings Group Holdings (HSTG) 171.00p -2.01%
Bellway (BWY) 2,511.00p -1.72%
Rightmove (RMV) 4,081.00p -1.71%
Beazley (BEZ) 342.90p -1.66%
Redrow (RDW) 379.90p -1.63%