London open: FTSE opens lower on weak US and Chinese data

US stocks fell at Friday’s close following poor wage growth and consumer sentiment.

Asian markets were also in the red on weaker Chinese manufacturing and lower oil prices. Two separate survey’s showed Chinese manufacturing activity slowed in July. The Caixin purchasing managers' index, which was previously sponsored by HSBC, declined to a two-year low of 47.7 from June's 49.4 on a 100-point scale. A level below 50 indicates a contraction in activity while a level above that signals expansion.

Another index by a Chinese industry group, the Federation of Logistics & Purchasing, and the government statistics bureau dipped to 50 from June's 50.2.

"Of course, this had a knock on effect for the FTSE, which looked a bit lifeless after the bell, hovering around 6700 but without showing much intention either up or down,” said Connor Campbell, financial analyst at Spreadex.

“A strong manufacturing figure later this morning could help put some juice in the UK index’s tank; however, the number has underperformed expectations for the last four months in a row, and following the disappointing manufacturing growth hidden in last week’s GDP report the FTSE may be left wanting.”

Markit releases its PMI on UK manufacturing at 0930 BST. Analysts expect a reading of 51.5 in July, up slightly from the previous month’s 51.4.

Later on, the US will be hoping to redeem itself from Friday's slump with the release of data on personal consumption expenditures and ISM manufacturing.

Earnings in focus

In company news, HSBC dominated the headlines after saying first half profits were up by 10%, beating analysis' expectations. The bank’s shares rose as it said earnings were driven by a strong performance in Asia.

CRH dropped as it announced it has reached an agreement to acquire certain assets from Lafarge-Holcim for a total enterprise value of €6.5bn.

A gauge of miners saw shares decline as copper and oil prices took a hit from weak Chinese and US data. Rio Tinto, BHP Billiton and Randgold Resources tumbled.

Intertek was higher after posting a rise in first-half pre-tax profit on the back of improved revenue momentum, margin progression and strong cash generation. Pre-tax profit was up 16.1% at 139.1m from £119.8m last year, while revenue grew 3.5% to £1.06bn from £1.02bn.

BG Group gained after saying it has generated first oil from the Cidade de Itaguaí floating, production, storage and offloading vessel in the Santos Basin, offshore Brazil.

Market Movers

techMARK 3,199.15 -0.29%

FTSE 100 6,683.24 -0.19%

FTSE 250 17,619.65 -0.33%

FTSE 100 - Risers

Intertek Group (ITRK) 2,601.00p +6.29%

Rolls-Royce Holdings (RR.) 830.00p +4.53%

RSA Insurance Group (RSA) 520.50p +1.26%

HSBC Holdings (HSBA) 585.10p +0.93%

SABMiller (SAB) 3,389.50p +0.74%

Lloyds Banking Group (LLOY) 83.79p +0.71%

BT Group (BT.A) 467.40p +0.64%

Imperial Tobacco Group (IMT) 3,380.00p +0.45%

Associated British Foods (ABF) 3,237.00p +0.40%

International Consolidated Airlines Group SA (CDI) (IAG) 535.50p +0.28%

FTSE 100 - Fallers

BHP Billiton (BLT) 1,163.00p -1.65%

Rio Tinto (RIO) 2,446.50p -1.61%

Royal Bank of Scotland Group (RBS) 337.00p -1.52%

Glencore (GLEN) 204.90p -1.49%

Anglo American (AAL) 799.30p -1.47%

Sainsbury (J) (SBRY) 261.40p -1.32%

Ashtead Group (AHT) 969.00p -1.27%

Merlin Entertainments (MERL) 410.80p -1.13%

TUI AG Reg Shs (DI) (TUI) 1,090.00p -1.09%

Sports Direct International (SPD) 783.50p -1.07%

FTSE 250 - Risers

Premier Farnell (PFL) 144.20p +6.34%

Vesuvius (VSVS) 420.40p +2.76%

Synergy Health (SYR) 1,774.00p +1.95%

Brown (N.) Group (BWNG) 323.40p +1.57%

Diploma (DPLM) 755.00p +1.55%

Nostrum Oil & Gas (NOG) 525.50p +1.45%

JD Sports Fashion (JD.) 816.50p +1.43%

Wizz Air Holdings (WIZZ) 1,670.00p +1.27%

Shawbrook Group (SHAW) 338.00p +1.20%

Zoopla Property Group (WI) (ZPLA) 242.80p +1.17%

FTSE 250 - Fallers

Fidessa Group (FDSA) 2,161.00p -9.96%

Premier Oil (PMO) 128.50p -4.03%

Acacia Mining (ACA) 230.50p -4.00%

Home Retail Group (HOME) 157.80p -3.37%

Lonmin (LMI) 50.70p -2.78%

Vedanta Resources (VED) 388.70p -2.65%

PayPoint (PAY) 975.50p -2.64%

Ophir Energy (OPHR) 113.30p -2.58%

Kaz Minerals (KAZ) 157.80p -2.53%

Tullow Oil (TLW) 239.70p -2.52%

FTSE TechMARK - Risers

Oxford Biomedica (OXB) 9.70p +4.98%

Skyepharma (SKP) 285.00p +1.79%

E2V Technologies (E2V) 227.00p +1.34%

KCOM Group (KCOM) 95.50p +1.06%

Dialight (DIA) 548.50p +0.64%

Spirent Communications (SPT) 93.75p +0.27%

Oxford Instruments (OXIG) 917.00p +0.11%

FTSE TechMARK - Fallers

NCC Group (NCC) 233.50p -0.85%

Consort Medical (CSRT) 928.00p -0.54%

RM (RM.) 169.50p -0.29%

Anite (AIE) 125.50p -0.20%

IShares Euro Gov Bond 7-10YR UCITS ETF (IEGM) € 201.26 -0.09%