London open: Stocks edge up despite uninspiring data

At 0840 GMT, the FTSE 100 was up 0.3% at 7,530.94.

Figures released earlier by the National Bureau of Statistics showed that China’s manufacturing activity shrank faster than expected in November as Covid restrictions took their toll.

The purchasing managers’ index for the sector fell to 48.0 from 49.2 in October, coming in below consensus expectations of 49.0. A reading above 50.0 indicates growth, while a reading below signals contraction.

NBS Senior Statistician Zhao Qinghe said: "In November, impacted by multiple factors including the wide and frequent spread of domestic outbreaks, and the international environment becoming more complex and severe, China’s purchasing managers’ index fell."

Zhao said domestic Covid outbreaks had caused production activity to slow down and product orders to fall.

Meanwhile, the non-manufacturing PMI declined to 46.7 in November from 48.7 the month before, versus consensus of 48.0.

On home shores, industry data showed that shop price inflation ramped up in November, leaving retailers braced for an increasingly difficult Christmas.

According to the latest BRC-NielsenIQ Shop Price Index, annual inflation was 7.4%, compared to October’s 6.6% and the three-month average of 6.5%. Annual food inflation surged to 12.4%, up from 11.6% in October, while non-food inflation was 4.8%, against 4.1% in October.

For many retailers, the weeks leading up to Christmas are the most important of the year, as shoppers splash out on big ticket items like furniture as well as presents and festive food.

But Helen Dickinson, chief executive of the British Retail Consortium, said: "Winter looks increasingly bleak, as pressures on prices continue unabated.

"Food prices have continued to soar, especially for meat, eggs and dairy, which have been hit by rocketing energy costs and rising costs of animal feed and transport. Christmas gifting is also set to become more expensive than in previous years, with sports and recreation equipment seeing particularly high increases.

"Christmas cheer will be dampened this year, as households cut back on seasonal spending to prioritise the essentials."

Separately, an industry survey showed that business optimism across the UK service sector continued to slide over the last three months. According to the latest CBI Service Sector Survey, optimism deteriorated for the third consecutive quarter across the sector in the three months to November.

Looking ahead to the rest of the day, investors were eyeing eurozone consumer price inflation figures for November at 1000 GMT and a speech by Federal Reserve chair Jerome Powell.

In equity markets, Rolls-Royce rallied after Barclays initiated coverage of the stock at ‘overweight’.

Specialist media publisher Future was also up after it reported a rise in full-year profits, driven by strong revenue growth and contributions from acquisitions.

Home REIT pushed higher after it published a full response to allegations made by short seller Viceroy Research last week, which sent its shares sliding.

Pennon was under the cosh as it said half-year profits tumbled after it was hit by higher costs.

Market Movers

FTSE 100 (UKX) 7,530.94 0.25%
FTSE 250 (MCX) 19,242.23 0.29%
techMARK (TASX) 4,387.05 0.32%

FTSE 100 - Risers

Rolls-Royce Holdings (RR.) 91.26p 2.40%
Flutter Entertainment (CDI) (FLTR) 12,145.00p 1.93%
Melrose Industries (MRO) 133.85p 1.83%
Pearson (PSON) 999.80p 1.61%
Taylor Wimpey (TW.) 103.70p 1.57%
Compass Group (CPG) 1,859.00p 1.56%
Informa (INF) 619.80p 1.54%
Entain (ENT) 1,418.50p 1.50%
Persimmon (PSN) 1,288.50p 1.46%
Next (NXT) 5,822.00p 1.43%

FTSE 100 - Fallers

HSBC Holdings (HSBA) 505.90p -0.86%
Rio Tinto (RIO) 5,523.00p -0.72%
Haleon (HLN) 283.70p -0.58%
RS Group (RS1) 916.50p -0.54%
Coca-Cola HBC AG (CDI) (CCH) 2,008.00p -0.50%
Centrica (CNA) 94.40p -0.44%
Severn Trent (SVT) 2,702.00p -0.44%
United Utilities Group (UU.) 1,021.50p -0.44%
Hargreaves Lansdown (HL.) 847.00p -0.42%
Legal & General Group (LGEN) 253.40p -0.39%

FTSE 250 - Risers

Home Reit (HOME) 60.60p 8.60%
CMC Markets (CMCX) 249.00p 5.73%
Wizz Air Holdings (WIZZ) 2,234.00p 3.91%
Carnival (CCL) 732.20p 3.65%
Molten Ventures (GROW) 390.00p 3.23%
IWG (IWG) 163.00p 2.35%
Sirius Real Estate Ltd. (SRE) 84.70p 2.17%
TUI AG Reg Shs (DI) (TUI) 147.30p 2.08%
Savills (SVS) 940.50p 2.06%
Aston Martin Lagonda Global Holdings (AML) 127.35p 1.92%

FTSE 250 - Fallers

Pennon Group (PNN) 911.00p -2.98%
Abrdn (ABDN) 199.30p -2.88%
RHI Magnesita N.V. (DI) (RHIM) 2,146.00p -1.92%
888 Holdings (DI) (888) 101.80p -1.17%
C&C Group (CDI) (CCR) 180.30p -1.04%
Darktrace (DARK) 352.20p -1.04%
Octopus Renewables Infrastructure Trust (ORIT) 100.80p -0.98%
Warehouse Reit (WHR) 112.60p -0.88%
4Imprint Group (FOUR) 4,065.00p -0.85%
Moneysupermarket.com Group (MONY) 188.50p -0.74%