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London open: Mining stocks drag FTSE lower
UK stocks opened in the red on Monday, dragged down by mining shares, as investors weighed European manufacturing data and awaited the release of economic reports in the US.
Eurozone manufacturing activity rose to a 19-month high in November. Markit’s purchasing managers’ index increased to 52.8 from 52.3 in October, above the 50 level that indicates an expansion.
Markit’s PMI on US manufacturing at 1445 GMT is expected to show a drop to 54 in November from 54.1 the previous month.
US existing home sales figures are then due at 1500 GMT, with analysts predicting a 2.7% drop to 5.40m in October compared to a month ago.
On the company front, miners were in the red, including Glencore, Anglo American and BHP Billiton, as metal prices declined.
Mitie Group slumped after half-year operating profits were hit by the deterioration of its performance in its healthcare arm and as it exited unprofitable contracts in that segment.
Going the other way, BAE Systems, Rolls Royce and Babcock International benefitted from news that the UK was set to announce an increase in defence spending.
Astrazeneca dipped after selling the US rights to Crohn’s disease medicine Entocort to Perrigo Company for $380m.
Segro fell as the real estate investment trust bought a portfolio of three, fully-let logistics buildings in the Netherlands for €92.7m from Dutch private developer Dok Vast.
