London open: Stocks edge lower as restrictions ease further

At 0850 BST, the FTSE 100 was down 0.3% at 7,026.13.

Russ Mould, investment director at AJ Bell, said: "It’s a big day for many businesses as the UK lifts more Covid-related restrictions. This should have been cause for celebration, but all eyes are on the Indian variant and whether the Government is going to impose new lockdowns, be it localised or national.

"Businesses will have to make hay while the sun shines, albeit interspersed by lots of dark clouds.

"Hospitality companies will be hoping that their doors stay open from today and not have a repeat of the stop-start cycle they’ve had to endure over the past year and a bit. It’s a good job that customers are now allowed to eat and drink inside as the weather has not been favourable to outdoor consumption of late, and hospitality operators need all the help they can get.

"A lot of consumers are in a strong position to spend big, having saved a lot of money during the pandemic, and many will be eager to splash the cash as they reclaim leisure experiences. Therefore, takings could be strong for at least the next few weeks, assuming consumers aren’t put off from the threat of the Indian variant spreading fast, particularly among those not yet vaccinated."

Investors were also mulling the latest data out of China, which showed that industrial production growth slowed as expected in April but retail sales disappointed, suggesting the world's second-biggest recovery faces a bumpier recovery path.

In equity markets, engine maker Rolls-Royce was on the back foot as Deutsche Bank said in a note that achieving the company's FY21 guidance "looks a bit daunting".

On the upside, Diploma rallied after saying annual results are set to be "significantly ahead" of expectations as the technical equipment supplier reported an increase in first-half profit and said momentum had increased in the second half.

Drax was lifted by an upgrade to ‘buy’ from 'neutral’ at Citi, while Vistry gained as the housebuilder lifted its full-year profit expectations thanks to "strong" demand across the business.

Budget airline Ryanair was trading up as it reported a record annual post-tax loss of €815m as passenger numbers plunged due to the Covid-19 pandemic, but said there were signs the recovery had begun.

Market Movers

FTSE 100 (UKX) 7,026.13 -0.25%
FTSE 250 (MCX) 22,357.69 0.10%
techMARK (TASX) 4,282.95 -0.08%

FTSE 100 - Risers

Fresnillo (FRES) 903.20p 2.03%
BT Group (BT.A) 164.80p 1.92%
B&M European Value Retail S.A. (DI) (BME) 570.80p 1.86%
Polymetal International (POLY) 1,626.50p 1.72%
Sainsbury (J) (SBRY) 262.30p 1.27%
Coca-Cola HBC AG (CDI) (CCH) 2,536.00p 1.04%
SSE (SSE) 1,549.00p 0.91%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,276.00p 0.79%
London Stock Exchange Group (LSEG) 7,240.00p 0.70%
Land Securities Group (LAND) 730.00p 0.66%

FTSE 100 - Fallers

Rolls-Royce Holdings (RR.) 104.84p -2.60%
Standard Chartered (STAN) 499.30p -1.52%
HSBC Holdings (HSBA) 442.40p -1.43%
BP (BP.) 310.00p -1.16%
Antofagasta (ANTO) 1,758.00p -1.15%
Ocado Group (OCDO) 1,965.00p -1.08%
Royal Dutch Shell 'B' (RDSB) 1,348.20p -1.07%
Whitbread (WTB) 3,147.00p -1.04%
InterContinental Hotels Group (IHG) 4,926.00p -1.02%
Intertek Group (ITRK) 5,826.00p -0.95%

FTSE 250 - Risers

Diploma (DPLM) 2,914.00p 5.96%
Hilton Food Group (HFG) 1,260.00p 3.28%
Drax Group (DRX) 443.20p 3.07%
Frasers Group (FRAS) 590.00p 2.25%
Petropavlovsk (POG) 25.72p 2.14%
C&C Group (CDI) (CCR) 297.20p 2.13%
JTC (JTC) 685.00p 2.09%
Chemring Group (CHG) 305.50p 2.00%
Vistry Group (VTY) 1,318.00p 1.70%
Future (FUTR) 2,434.00p 1.67%

FTSE 250 - Fallers

Aston Martin Lagonda Global Holdings (AML) 1,896.00p -3.14%
SSP Group (SSPG) 315.10p -2.39%
Tullow Oil (TLW) 53.00p -1.89%
Restaurant Group (RTN) 126.20p -1.87%
easyJet (EZJ) 999.00p -1.53%
Trainline (TRN) 433.20p -1.50%
Energean (ENOG) 841.50p -1.46%
IWG (IWG) 364.90p -1.27%
Wizz Air Holdings (WIZZ) 4,654.00p -1.23%
JPMorgan Japanese Inv Trust (JFJ) 596.00p -1.16%