London midday: Stocks stay down after China GDP data; UK retail sales beat
London stocks were still weaker by midday on Friday after data showed that economic growth in China slowed, although UK retail sales figures were better than expected.
The FTSE 100 was down 0.3% at 8,364.20.
Figures released earlier by the National Bureau of Statistics showed that China’s GDP grew 4.6% in the third quarter, down from 4.7% growth in the second quarter, but above economists’ expectations for growth of 4.5%.
Richard Hunter, head of markets at Interactive Investor, said: "Quite apart from being shy of the official 5% target, the pockets of weakness as evidenced by a flagging property sector, high youth unemployment and low consumer confidence are all areas which need to be addressed."
On home shores, data from the Office for National Statistics showed that retail sales ticked higher in September, beating expectations, as consumers splashed out on technology.
Month-on-month sales volumes rose 0.3%. Growth was slower than the 1% improvement seen in August, but was comfortably ahead of forecasts for a 0.3% decline. Volumes were also at their highest index levels since July 2022.
Year-on-year, sales jumped 3.9%, the largest annual rise February 2022.
The best performing sector was computer and telecommunications, which helped partially offset a 2.4% decrease in supermarkets. Other non-foods, which includes tech, spiked 5.5%.
Cooler weather also helped support clothing and footwear sales.
Kris Hamer, director of insight at the British Retail Consortium, said: "Autumn led people to upgrade their wardrobe, as well as the last minute student dash for new computers, as the new academic year began.
"Big ticket items, such as furniture and other household goods, continued to take a hit from some consumers, such as those saving for Christmas or preferring to spend on experiences."
In equity markets, British American Tobacco was the worst performer on the top-flight index despite saying that one of its subsidiaries was getting closer to settling a multibillion dollar lawsuit in Canada.
Media group Future tumbled as it said that chief executive Jon Steinberg plans to step down from the board later next year to relocate back to the US with his family.
Russ Mould, investment director at AJ Bell, said: "Jon Steinberg was only appointed to the top role in April 2023 but he’s already handed in his notice, saying it’s time to move back to the US with his family.
"Investors have taken this to be a bad sign, dragging the shares down more than 10%. Future used to be a highly acquisitive business, snapping up titles to expand its empire of media assets which were then used as a platform to earn commission on product or service sales.
"The cost-of-living crisis and high interest rate environment knocked the company off track and it has been trying to regain momentum ever since. More recently, it has been shutting down the weaker parts of its business to save money and improve group margins, while at the same time trying to revive growth.
"Investors will be asking why Steinberg isn’t sticking around to see through this strategy - has he spotted problems down the line or has he simply been offered a better opportunity elsewhere?"
Bunzl was in the red after a downgrade to ‘neutral’ from ‘buy’ at Citi, which said the shares are now trading in line with long run valuation multiples.
Housebuilders were on the back foot, with Taylor Wimpey, Barratt Redrow, Persimmon and Bellway all down. Richard Hunter said the stocks were "under some pressure as Budget uncertainty continues to unsettle the outlook despite new government pledges to revive the sector".
On the upside, heavily-weighted miners rallied, with Anglo American, Glencore, Antofagasta and Rio Tinto among the top gainers on the FTSE 100.
BP gushed higher following a Reuters report it is considering selling a minority stake in its offshore wind business, the latest effort by CEO Murray Auchincloss to scale back the energy company's focus on renewables.
Market Movers
FTSE 100 (UKX) 8,363.76 -0.25%
FTSE 250 (MCX) 21,160.40 0.28%
techMARK (TASX) 4,819.87 0.11%
FTSE 100 - Risers
Prudential (PRU) 679.20p 3.73%
Anglo American (AAL) 2,404.50p 2.87%
Glencore (GLEN) 413.10p 2.46%
Fresnillo (FRES) 698.00p 1.97%
Antofagasta (ANTO) 1,837.50p 1.94%
Rio Tinto (RIO) 5,006.00p 1.21%
Flutter Entertainment (DI) (FLTR) 17,960.00p 0.98%
BP (BP.) 403.90p 0.98%
Entain (ENT) 739.00p 0.93%
Spirax Group (SPX) 6,860.00p 0.88%
FTSE 100 - Fallers
British American Tobacco (BATS) 2,650.00p -2.86%
Barratt Redrow (BTRW) 482.70p -2.31%
Taylor Wimpey (TW.) 162.75p -1.99%
Relx plc (REL) 3,652.00p -1.96%
Bunzl (BNZL) 3,544.00p -1.83%
Persimmon (PSN) 1,662.00p -1.57%
Unilever (ULVR) 4,783.00p -1.52%
Next (NXT) 10,315.00p -1.34%
Compass Group (CPG) 2,494.00p -1.31%
Haleon (HLN) 380.00p -1.27%
FTSE 250 - Risers
Burberry Group (BRBY) 718.00p 4.42%
Fidelity China Special Situations (FCSS) 216.50p 4.34%
SSP Group (SSPG) 171.40p 3.44%
W.A.G Payment Solutions (WPS) 84.40p 3.18%
Ninety One (N91) 182.60p 2.70%
Me Group International (MEGP) 210.50p 2.43%
SDCL Energy Efficiency Income Trust (SEIT) 61.90p 2.15%
WH Smith (SMWH) 1,414.00p 2.09%
Mony Group (MONY) 200.40p 1.93%
BlackRock World Mining Trust (BRWM) 534.00p 1.91%
FTSE 250 - Fallers
Future (FUTR) 847.00p -13.92%
Bellway (BWY) 3,216.00p -3.60%
CMC Markets (CMCX) 328.00p -2.96%
Bloomsbury Publishing (BMY) 664.00p -1.48%
TR Property Inv Trust (TRY) 339.50p -1.02%
Bellevue Healthcare Trust (Red) (BBH) 145.60p -0.95%
Worldwide Healthcare Trust (WWH) 344.50p -0.86%
The Global Smaller Companies Trust (GSCT) 165.20p -0.84%
Pantheon International (PIN) 318.00p -0.78%
Alpha Group International (ALPH) 2,115.00p -0.70%