FTSE 100 movers: Miners slump on China data; Next gains ahead of update

London’s FTSE 100 was down 0.7% at 6,679.27 in afternoon trade on Wednesday, kicking off the new year in the red following the release of disappointing Chinese data.

Miners suffered the heaviest losses, with Glencore, Anglo, BHP and Antofagasta all lower on the back of disappointing Chinese manufacturing data.

China’s private Caixin/Markit manufacturing purchasing managers’ index released earlier showed a drop to 49.7 in December from 50.2 in November. This marked the first contraction in 19 months and missed expectations for a reading of 50.1. The figures confirmed a trend seen in the official PMI released on Monday, which slipped to 49.4 in December - its weakest level since early 2016.

Smith & Nephew was also weaker as JPMorgan Cazenove cut the stock to ‘neutral’ from ‘overweight’. JPM noted that the shares significantly outperformed last year, up 12% in absolute terms, outperforming the FTSE by 25 percentage points and the European Medtech sector by 22 percentage points.

It now reckons the risk-reward from here is more balanced, with valuation less compelling and material upside likely requiring earnings upgrades.

On the upside, retailer Next was the best performer ahead of its trading update on Thursday.

Independent retail analyst Nick Bubb said Next is seen as important within the sector, both generally and particularly this year because it is one of the biggest and best managed non-food retailers, it is always honest in its analysis and guidance - "no corporate double-speak" - and chief executive Simon Wolfson is a well-respected "economic guru".

"And it is important this year because the Next share price has been under significant pressure on fears that Next lost out badly by again refusing to take part in pre-Christmas discounting," said Bubb.

"As ever, it is hard to know exactly what is ‘in the price’ and most shorts will be mindful that a year ago Next did better than expected at Christmas, sending its share price soaring. This time it could be different, however, and, with full-price sales for the 7/8 weeks to Christmas Eve likely to be 3%-4% down, we suspect that the full-year profit before tax guidance (which stood at £727m at the end of October) will be cut to below £700m."

FTSE 100 - Risers

Next (NXT) 4,108.00p 2.93%
Ocado Group (OCDO) 808.60p 2.35%
GVC Holdings (GVC) 688.50p 2.15%
TUI AG Reg Shs (DI) (TUI) 1,144.00p 1.64%
Severn Trent (SVT) 1,844.00p 1.57%
SEGRO (SGRO) 596.60p 1.36%
United Utilities Group (UU.) 744.00p 1.06%
London Stock Exchange Group (LSE) 4,105.00p 1.06%
Rightmove (RMV) 436.50p 0.98%
Smurfit Kappa Group (SKG) 2,102.00p 0.96%

FTSE 100 - Fallers

Glencore (GLEN) 277.25p -4.84%
Anglo American (AAL) 1,673.10p -4.27%
BHP Group (BHP) 1,585.60p -4.00%
Antofagasta (ANTO) 752.20p -3.96%
Evraz (EVR) 463.10p -3.62%
Rio Tinto (RIO) 3,626.25p -2.78%
Prudential (PRU) 1,364.49p -2.68%
Smith & Nephew (SN.) 1,425.50p -2.63%
Lloyds Banking Group (LLOY) 50.56p -2.49%
Informa (INF) 615.40p -2.35%