FTSE 100 movers: Pearson slumps on update; StanChart gains on Essar news

London’s FTSE 100 was down 0.7% to 6,963.60 in afternoon trade.

Education publisher Pearson fell sharply after saying underlying sales for the nine months to the end of September fell 7%.

The main reason is the decline in revenue from exam assessments in the US and UK, with new added declines in North American Higher Education courseware due to a further inventory correction by retailers in July and August, though this has eased off since.

Housebuilders were also on the back foot amid growing concerns about the impact of Brexit.

The EY Item Club said on Monday that Britain faces a prolonged period of weaker growth as consumer spending slows and businesses curb investments. The think tank expects inflation will rise due to a weaker pound post Brexit, which may prompt consumers to refrain from spending.

Meanwhile, Chancellor Philip Hammond is reportedly butting heads with other ministers during talks about Brexit. According to reports over the weekend, Hammond was threatening to quit over the divisions but the government has since denied the rumour.

On the upside, Standard Chartered gained ground on news that India’s Essar Group – which owes the bank money – has agreed to sell a 98% stake in its Essar Oil unit to a consortium led by Russia’s Rosneft.

Glencore and Anglo American benefited from a note by RBC Capital Markets, which upped its price forecasts for coking coal and thermal coal and recommended investors increase their exposure to non-precious metal mining shares.

In terms of global diversifieds, the bank recommended shares of Anglo American, Glencore, Rio Tinto and South32.

Risers

Glencore (GLEN) 231.90p 1.60%
Standard Chartered (STAN) 658.80p 1.03%
Anglo American (AAL) 1,016.00p 0.99%
ITV (ITV) 173.90p 0.81%
Rolls-Royce Holdings (RR.) 770.50p 0.78%
Lloyds Banking Group (LLOY) 52.77p 0.65%
London Stock Exchange Group (LSE) 2,856.00p 0.46%
BT Group (BT.A) 377.00p 0.45%
GKN (GKN) 329.60p 0.43%
Old Mutual (OML) 193.20p 0.21%

Fallers

Pearson (PSON) 764.50p -8.17%
Admiral Group (ADM) 1,970.00p -2.76%
Standard Life (SL.) 329.90p -2.14%
Ashtead Group (AHT) 1,287.00p -2.13%
Hargreaves Lansdown (HL.) 1,166.00p -2.10%
DCC (DCC) 6,795.00p -2.09%
Royal Mail (RMG) 487.10p -1.97%
Barratt Developments (BDEV) 473.60p -1.89%
Direct Line Insurance Group (DLG) 353.00p -1.78%
Persimmon (PSN) 1,676.00p -1.76%