London close: Stocks fall after mixed batch of data

UK construction activity slowed more than expected in April, according to Markit/CIPS data. The construction purchasing managers’ index fell to 52.0, down from 54.2 in March and missing expectations for a reading of 54.0.

Although it was still above the 50.0 mark that separates contraction from expansion, it pointed to the slowest expansion of business activity since mid-2013.

David Morrison, senior market strategist at SpreadCo, said: “There will be precious little chance of the Bank of England considering a rate hike this year until there’s a definite improvement in the trend for these numbers."

The report comes a day after the Markit/CIPS PMI on UK manufacturing showed an unexpected contraction in April, falling to 49.2 from 50.7 in March.

In the eurozone, data from the EU statistics agency revealed retail sales fell 0.5% in March compared to a month earlier, worse than the 0.1% decline expected by analysts. On the year sales increased 2.1% but missed forecast for a 2.6% gain.

Stateside, private consultancy ADP said US employers added 156,000 jobs in April, compared with a downwardly-revised 194,000 in March and much weaker than expectations of 196,000.

The data comes ahead of Friday’s all-important non-farm payrolls report, which is expected to show employers added 200,000 jobs in April compared to 215,000 the previous month.

Meanwhile, new orders for US factory goods rose more than expected in March, the Commerce Department said. New orders for manufactured goods increased 1.1% after February's downwardly revised 1.9% fall, beating estimates for a 0.6% gain.

Markit’s final US business services PMI printed at 52.8 in April, up from 51.3 in March and ahead of consensus estimates for a reading of 52.1.

Other data showed the US trade deficit hit its lowest level in 16 months in March as imports fell the most in seven years. The trade deficit narrowed by $6.5bn to $40.4bn, marking the smallest gap since November 2014 and a little better than economists’ expectations for a deficit of $41.2bn.

Separately, US government data revealed commercial crude stockpiles rose by 2.8 million barrels last week to a total of 543.4 million barrels, more than the increase of 1.7 million barrels expected.

At 1652 BST Brent crude fell 0.20% to $44.88 per barrel and West Texas Intermediate rose 0.34% to $43.80 per barrel.

“Today’s abundance of US data has made for a difficult trading environment, with contrasting data points providing mixed expectations for monetary policy implications,” said IG market analyst Josh Mahony.

On the corporate front, Sainsbury’s shares fell after the supermarket reported a 13.8% drop in full year underlying pre-tax profit to £587m as sales declined and the group grappled with the industry price war and ensuring food price deflation.

Next rallied despite warning that sales and profits could be lower than previously forecast due to a potential slowdown in consumer spending. Numis reiterated an ‘add’ rating on the retailer, saying shares were trading at “good value” for investors.

BHP Billiton edged lower on news that federal prosecutors in Brazil have launched a $43bn lawsuit against the company’s part-owned Samarco Mineração mining unit to claim compensation for the dam disaster last November

International Personal Finance dropped after saying growth in customer number and lending slowed in the first quarter due to an easing in the key market of Mexico.

Electra Private Equity jumped after reported first half net asset value per share of 4,405p - a total return of 15% in a period where the FTSE All-Share has returned 4%.

Market Movers

FTSE 100 (UKX) 6,112.02 -1.19%
FTSE 250 (MCX) 16,641.74 -0.53%
techMARK (TASX) 3,048.79 -0.61%

FTSE 100 - Risers

Next (NXT) 5,150.00p 3.46%
Admiral Group (ADM) 1,928.00p 1.31%
Direct Line Insurance Group (DLG) 371.00p 0.73%
Provident Financial (PFG) 2,942.00p 0.62%
TUI AG Reg Shs (DI) (TUI) 987.50p 0.51%
International Consolidated Airlines Group SA (CDI) (IAG) 512.50p 0.49%
BAE Systems (BA.) 478.50p 0.48%
Rolls-Royce Holdings (RR.) 645.00p 0.47%
Wolseley (WOS) 3,868.00p 0.44%
easyJet (EZJ) 1,440.00p 0.35%

FTSE 100 - Fallers

Randgold Resources Ltd. (RRS) 5,830.00p -11.73%
Sainsbury (J) (SBRY) 267.80p -6.27%
BHP Billiton (BLT) 824.80p -5.77%
Tesco (TSCO) 160.05p -5.44%
London Stock Exchange Group (LSE) 2,576.00p -4.20%
Anglo American (AAL) 641.40p -3.65%
Fresnillo (FRES) 1,036.00p -3.27%
Glencore (GLEN) 145.05p -3.17%
Royal Dutch Shell 'A' (RDSA) 1,704.50p -2.88%
Antofagasta (ANTO) 435.40p -2.75%

FTSE 250 - Risers

Cobham (COB) 157.60p 5.07%
NCC Group (NCC) 275.50p 4.24%
Sophos Group (SOPH) 208.20p 3.94%
Electra Private Equity (ELTA) 3,740.00p 3.89%
CLS Holdings (CLI) 1,632.00p 3.36%
Supergroup (SGP) 1,243.00p 3.24%
Wetherspoon (J.D.) (JDW) 700.00p 3.02%
Mitchells & Butlers (MAB) 270.00p 2.51%
Pendragon (PDG) 35.00p 2.34%
Micro Focus International (MCRO) 1,573.00p 2.14%

FTSE 250 - Fallers

Interserve (IRV) 402.30p -9.82%
Acacia Mining (ACA) 314.40p -7.61%
Vedanta Resources (VED) 370.60p -6.41%
International Personal Finance (IPF) 244.50p -6.29%
Ophir Energy (OPHR) 66.70p -5.92%
Centamin (DI) (CEY) 113.60p -5.41%
F&C Commercial Property Trust Ltd. (FCPT) 126.60p -4.52%
Polymetal International (POLY) 682.00p -4.35%
Aberdeen Asset Management (ADN) 265.50p -4.05%
Home Retail Group (HOME) 163.40p -3.66%