London open: Subdued start as markets await UK data

UK stocks were trading slightly lower on Tuesday morning as investors prepared for a raft of economic data on the British economy.

The FTSE 100 was 0.1% lower at 6,830 in early deals, trading in the red for the third straight day.

Stocks came under pressure on Monday on the back of growing support for the 'yes' campaign ahead of the Scottish referendum on 18 September. A Yougov opinion poll showed that supporters of independence took the lead for the first time in the campaign.

Turning to Tuesday's agenda, UK manufacturing production figures due out at 09:30 were expected to show output improved 0.3% over the month of July, with growth steady after the 0.3% growth in June. Compared with last year, growth is predicted to pick up to 2.2% from 1.9% the previous month.

The UK goods trade deficit is forecast to narrow to £9.1bn in July after rising to £9.4bn in June.

Later on, the NIESR gives its latest UK gross domestic product growth estimate for the three months August, which is expected to remain unchanged from the 0.6% seen in July.

Meanwhile, eyes will be kept on Bank of England governor Mark Carney who is due to speak in Liverpool about UK wages.

"Traders often use these public appearances to scrutinise his words to potentially gain further clarity and clues on the monetary policies and any changes in the future," said trader Sam Fox from Spreadex.

Petra and WM Morrison lead the rise

FTSE 250-listed Petra Diamonds jumped after the miner announced the recovery of an "exceptional" 232.08-carat white diamond at its Cullinan mine in South Africa. "The stone is a D colour Type II diamond of exceptional size and clarity, and is a magnificent example of the large, high quality diamonds for which the mine is known," the company said.

Supermarket chain WM Morrison was on the rise after Citigroup upgraded its rating on the stock to 'buy'. Grocery rivals Tesco and J Sainsbury were also trading higher, along with Marks & Spencer.

Hotel, restaurant and Costa owner Whitbread erased early gains despite releasing a strong second-quarter trading update which showed that sales had grown 12.8%. "Whitbread remains on track for another good year," said chief executive Andy Harrison.

Banking stocks were recovering after heavy falls on Monday on the back of concerns about the Scottish referendum's impact on business. Lloyds, Barclays and RBS were putting in decent gains.

Glasgow-based engineer Weir, which had also fell sharply the previous session on similar concerns, was rebounding slightly in morning trade.

Market Movers
techMARK 2,855.42 +0.03%
FTSE 100 6,829.55 -0.08%
FTSE 250 15,746.01 -0.14%

FTSE 100 - Risers
Morrison (Wm) Supermarkets (MRW) 174.20p +2.47%
Lloyds Banking Group (LLOY) 73.43p +1.70%
Marks & Spencer Group (MKS) 433.50p +1.26%
Petrofac Ltd. (PFC) 1,107.00p +1.10%
Persimmon (PSN) 1,325.00p +1.07%
Smiths Group (SMIN) 1,352.00p +0.90%
Rio Tinto (RIO) 3,244.50p +0.89%
Barclays (BARC) 226.75p +0.82%
Vodafone Group (VOD) 206.90p +0.71%
Centrica (CNA) 326.30p +0.68%

FTSE 100 - Fallers
Unilever (ULVR) 2,693.00p -1.28%
Land Securities Group (LAND) 1,058.00p -1.21%
Royal Dutch Shell 'B' (RDSB) 2,513.50p -1.06%
Coca-Cola HBC AG (CDI) (CCH) 1,414.00p -1.05%
Ashtead Group (AHT) 1,012.00p -0.98%
St James's Place (STJ) 699.50p -0.92%
Hammerson (HMSO) 599.00p -0.83%
Royal Dutch Shell 'A' (RDSA) 2,416.50p -0.82%
SSE (SSE) 1,465.00p -0.81%
British Land Co (BLND) 722.50p -0.76%

FTSE 250 - Risers
Petra Diamonds Ltd.(DI) (PDL) 187.50p +6.05%
Oxford Instruments (OXIG) 1,172.00p +2.54%
Hansteen Holdings (HSTN) 102.30p +2.10%
Lonmin (LMI) 224.00p +1.68%
Ferrexpo (FXPO) 133.10p +1.60%
Inmarsat (ISAT) 716.00p +1.56%
Cairn Energy (CNE) 177.80p +1.54%
Supergroup (SGP) 1,217.00p +1.42%
Dechra Pharmaceuticals (DPH) 763.00p +1.40%
Galliford Try (GFRD) 1,247.00p +1.38%

FTSE 250 - Fallers
Fidessa Group (FDSA) 2,240.00p -2.18%
Hochschild Mining (HOC) 161.00p -1.83%
COLT Group SA (COLT) 140.00p -1.69%
Exova Group (EXO) 183.50p -1.66%
Daejan Holdings (DJAN) 4,848.00p -1.64%
Centamin (DI) (CEY) 65.20p -1.58%
Telecity Group (TCY) 758.00p -1.56%
Croda International (CRDA) 2,184.00p -1.49%
Go-Ahead Group (GOG) 2,275.00p -1.43%
Workspace Group (WKP) 628.00p -1.41%