London open: Stocks fall after downbeat US session
London stocks fell in early trade on Wednesday, taking their cue from a mostly downbeat session on Wall Street.
At 0900 BST, the FTSE 100 was down 0.8% at 7,091.86.
Richard Hunter, head of markets at Interactive Investor, said: "The wider cyclical concerns and a mixed showing from Asian markets filtered through to a weak opening in the UK, where investors have been more circumspect over recent trading sessions.
"Where the initial surge of economic growth had been positive for the market, demand soon outstripped supply, causing blockages in the supply chain and some labour shortages which have hampered subsequent progress.
"Cyclical shares such as the banks bore the brunt of early selling pressure, although there was an element of positive pushback from the mining stocks in the opening exchanges.
"The main indices are still seen as attractive on valuation grounds, and as such could provide buying opportunities on the dips to interested parties, which has been the case this year as international investors have hovered over the UK market."
In equity markets, Smiths Group was the top gainer on the FTSE 100 after agreeing to sell is medical business to US-based ICU Medical for $2.4bn, withdrawing its support for a rival $2bn offer from TA Associates agreed last month.
Homewares retailer Dunelm also rose after it said 2022 full-year profits would be "modestly" ahead of expectations as it posted a strong rise in 2021 earnings, driven by online sales during the Covid pandemic.
Avon Protection advanced after saying it had secured a contract worth up to $87.6m over two years to develop and supply the US Army with the next generation Integrated Head Protection System as part of a dual sourced programme.
Morrisons edged higher as it said it is in talks with the Takeover Panel about launching an auction process for the supermarket chain after Fortress Investment Group and Clayton Dubilier & Rice failed to declare their bids final.
Market Movers
FTSE 100 (UKX) 7,091.86 -0.80%
FTSE 250 (MCX) 23,968.66 -0.53%
techMARK (TASX) 4,773.52 -0.78%
FTSE 100 - Risers
Smiths Group (SMIN) 1,476.00p 3.76%
Antofagasta (ANTO) 1,419.50p 0.57%
Whitbread (WTB) 3,272.00p 0.37%
Polymetal International (POLY) 1,443.00p 0.21%
Rolls-Royce Holdings (RR.) 111.04p 0.14%
Royal Mail (RMG) 496.20p 0.14%
Ocado Group (OCDO) 1,967.50p 0.13%
London Stock Exchange Group (LSEG) 8,204.00p 0.05%
Smith (DS) (SMDS) 462.40p 0.02%
Pershing Square Holdings Ltd NPV (PSH) 2,555.00p 0.00%
FTSE 100 - Fallers
Kingfisher (KGF) 340.90p -1.96%
Taylor Wimpey (TW.) 173.10p -1.68%
Persimmon (PSN) 2,789.00p -1.48%
Barclays (BARC) 182.66p -1.47%
Relx plc (REL) 2,173.00p -1.45%
Barratt Developments (BDEV) 698.60p -1.41%
3i Group (III) 1,312.00p -1.39%
Experian (EXPN) 3,247.00p -1.37%
Informa (INF) 542.00p -1.35%
Weir Group (WEIR) 1,700.00p -1.33%
FTSE 250 - Risers
Dunelm Group (DNLM) 1,375.00p 6.92%
Liontrust Asset Management (LIO) 2,500.00p 2.67%
Capita (CPI) 48.32p 0.98%
Wizz Air Holdings (WIZZ) 4,977.00p 0.89%
ICG Enterprise Trust (ICGT) 1,192.00p 0.85%
Avon Protection (AVON) 1,789.00p 0.73%
Carnival (CCL) 1,530.80p 0.66%
easyJet (EZJ) 783.00p 0.64%
Morrison (Wm) Supermarkets (MRW) 292.80p 0.58%
Redde Northgate (REDD) 432.50p 0.58%
FTSE 250 - Fallers
Inchcape (INCH) 893.00p -4.29%
Virgin Money UK (VMUK) 203.20p -2.31%
Hammerson (HMSO) 34.30p -2.06%
Ibstock (IBST) 224.00p -1.75%
CMC Markets (CMCX) 292.00p -1.68%
Future (FUTR) 3,774.00p -1.67%
Big Yellow Group (BYG) 1,542.00p -1.66%
Grainger (GRI) 328.40p -1.62%
Sirius Real Estate Ltd. (SRE) 125.60p -1.57%
Micro Focus International (MCRO) 420.40p -1.52%