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London open: Stocks edge down; Marshalls slides on profit warning
London stocks edged lower in early trade on Monday as investors mulled the latest Chinese manufacturing data and news of further measures from authorities in China to boost consumption.
At 0915 BST, the FTSE 100 was down 0.2% at 7,676.16.
Victoria Scholar, head of investment at Interactive Investor, said: “This week is set to be another busy week in terms of earnings reports. Also ahead, the Bank of England looks set to raise interest rates on Thursday and the US non-farm payrolls report on Friday will potentially provide clues into the Fed’s next move.”
Data released earlier by the National Bureau of Statistics showed that manufacturing activity shrank for the fourth month in a row in China.
The manufacturing PMI for July rose to 49.3 from 49.0 in June. This remained below the 50 mark that separates contraction from expansion, although it was above consensus expectations of 48.9.
Meanwhile, the non-manufacturing PMI fell to 51.5 in July from 53.2 the month before, versus consensus expectations of 53.0.
ING said: “The decline in manufacturing eased slightly in July, but the non-manufacturing sector showed a larger-than-expected slowdown in growth and further falls could see it skirting with contraction.”
It added: “China’s official PMI data provides little encouragement that the economy is turning the corner.
“And while the authorities have been vocal in their support for the economy, so far, that has not translated into the sort of sizeable fiscal policy stimulus many in the market have become used to expecting. We don’t think it is coming.”
Also on Monday, Chinese authorities announced further measures to bolster consumption, targeting areas such as electric vehicles and housing and tourism.
In UK equity markets, education publisher Pearson fell even as it reported stronger first-half sales and a big jump in operating profits, along with an improved cash flow performance.
Building products manufacturer Marshalls tumbled as it warned on profits, said it will cut around 250 jobs and announced the closure of one of its factories as it pointed to high inflation, rising interest rates and weaker consumer confidence.
Vanquis Banking Group was weaker as it announced the acquisition of money-saving fintech Snoop for an undisclosed sum.
Senior was down despite posting a big jump in sales and profits for the first half of the year and announcing that it would double its interim dividend.
On the upside, Dr Martens surged as it emerged that activist investor Sparta Capital has built up a stake in the bootmaker.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Tui Ag | +2.91% | +17.50 | 618.50 |
| 2 |  |
Centrica Plc | +2.53% | +3.40 | 137.60 |
| 3 |  |
International Consolidated Airlines Group S.a. | +2.48% | +4.10 | 169.25 |
| 4 |  |
Rightmove Plc | +1.47% | +8.20 | 567.00 |
| 5 |  |
Melrose Industries Plc | +1.14% | +6.00 | 530.80 |
| 6 |  |
Scottish Mortgage Investment Trust Plc | +1.11% | +8.00 | 728.00 |
| 7 |  |
Sse Plc | +0.96% | +16.00 | 1,689.00 |
| 8 |  |
Glencore Plc | +0.88% | +4.10 | 470.60 |
| 9 |  |
Easyjet Plc | +0.80% | +3.60 | 453.80 |
| 10 |  |
Standard Chartered Plc | +0.70% | +5.20 | 742.80 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Ocado Group Plc | -3.77% | -36.80 | 939.60 |
| 2 |  |
Rolls-royce Holdings Plc | -2.10% | -4.05 | 189.25 |
| 3 |  |
Sainsbury (j) Plc | -1.56% | -4.40 | 278.20 |
| 4 |  |
Prudential Plc | -1.36% | -15.00 | 1,086.00 |
| 5 |  |
Coca-cola Hbc Ag | -1.23% | -29.00 | 2,326.00 |
| 6 |  |
Croda International Plc | -1.11% | -66.00 | 5,890.00 |
| 7 |  |
Hargreaves Lansdown Plc | -0.98% | -8.60 | 864.80 |
| 8 |  |
Kingfisher Plc | -0.93% | -2.30 | 244.80 |
| 9 |  |
Informa Plc | -0.92% | -7.00 | 755.80 |
| 10 |  |
St. James’s Place Plc | -0.91% | -8.60 | 937.00 |
Monday newspaper round-up: Debanking, mortgage rates, London office space
Banks are closing more than 1,000 accounts every working day, according to new data that has fuelled the growing row over so-called “debanking” and prompted Nigel Farage to call for a royal commission to investigate what he said was a scandal. Hours after the former Ukip leader revealed he was spearheading a website to campaign on behalf of people whose accounts had been shut, data revealed a big jump in the numbers of customers dumped by their bank. – Guardian
The biggest regulatory shake-up of UK retail financial services for two decades will come into force on Monday in an effort to crack down on rip-offs and poor customer service. The changes include stronger rules on value for money and giving fair pricing to all customers, with experts predicting that some older financial products that do not meet the new higher standards are likely to be removed from sale. – Guardian
Home buyers could benefit from mortgage rate reductions following an expected 0.25 percentage Bank Rate rise later this week. Brokers said that as long as the Bank of England does not surprise with a larger than expected interest rate rise on Thursday, lenders should soon have the confidence to start competing for a dwindling pool of borrowers. – Telegraph
Demand for office space in London has slumped as the shift to working from home takes root. The Covid-19 lockdown, which saw many workers forced to work from home, has had a significant impact on working practices with an increasing number of businesses opting for hybrid working styles for their staff. – Telegraph
British manufacturers have continued to supply Russia with key industrial equipment despite the invasion of Ukraine, analysis of trade data shows. After the full-scale invasion was launched in February last year, many of Britain’s industrial manufacturers quickly wound down their business relationships with Russia. The government introduced what it described as “sweeping” restrictions on what material UK suppliers could export to Russia, focusing on areas that are big tax-earners for the Kremlin. – The Times
