London midday: Stocks slide as miners slump after China data

(Sharecast News) - London stocks has fallen further into the red by midday on Monday, with economic growth and inflation concerns weighing on sentiment as investors mulled disappointing Chinese trade figures. The FTSE 100 was down 1.8% at 7,256.98.

Russ Mould, investment director at AJ Bell, said: "The optimism that followed the US Federal Reserve meeting last Wednesday feels a long way off on Monday morning as the FTSE 100 dropped to its lowest levels since mid-March.

"The continuing impact of Beijing's zero-Covid policy in China and concerns about the Fed's next moves are helping to pile the pressure on markets.

"The impact of Chinese restrictions was reflected in export growth hitting two-year lows in April - in effect back where we were near the start of the pandemic.

"And investors are getting an unnerving reminder of the current geopolitical risks as Russian President Vladimir Putin leads anniversary celebrations in Moscow to mark the Soviet victory against the Nazis in the Second World War.

"This show of strength, as Russia displays its military arsenal, belies the weakness of the country's position; isolated and stuck in a grinding conflict in Ukraine. However, it certainly sharpens focus on the wider threat the nuclear power can still pose."

In equity markets, miners were under the cosh after the Chinese data, with Glencore, Antofagasta, Rio and Anglo American all down.

Property firms Shaftesbury and Capital & Counties were both weaker as they confirmed they were in advanced discussions about a possible merger. Responding to press speculation of a £3.5bn deal, they said: "The possible merger would create a REIT focused on the West End of London with a portfolio of circa 2.9 million square feet of lettable space located in high-profile destinations including Covent Garden, Carnaby, Chinatown and Soho.

"The combined ownership would comprise c.1.8 million square feet of retail and hospitality space, together with office and residential accommodation of c.1.1 million square feet."

Rightmove sank after it announced that chief executive Peter Brooks-Johnson will step down from the board and leave the company in the coming year.

Mould said: "He has been with the company since 2006, took charge in May 2017 and has led the company successfully through the disruption caused by the pandemic and the competitive threat posed by challengers like OnTheMarket and Zoopla.

"There may be some disappointment that there isn't a ready-made replacement on hand, in the same way there was when Brooks-Johnson replaced Nick McKittrick five years ago.

"Whoever comes in next could face a tricky backdrop, with the property market looking increasingly challenged. Rightmove's leading position should help and arguably its services might be even more crucial if estate agents have to work harder to generates sales."

Elsewhere, cyber security company NCC Group gained after saying it appointed a new chief executive and lifting revenue guidance for the second half of the year.

Energean rallied as the hydrocarbon exploration and production company said its Athena exploration well had made a commercial gas discovery off the coast of Israel.

Market Movers

FTSE 100 (UKX) 7,256.98 -1.77% FTSE 250 (MCX) 19,352.50 -2.36% techMARK (TASX) 4,241.06 -1.32%

FTSE 100 - Risers

Sainsbury (J) (SBRY) 230.90p 1.32% British American Tobacco (BATS) 3,319.00p 0.58% International Consolidated Airlines Group SA (CDI) (IAG) 131.94p 0.38% Meggitt (MGGT) 779.40p 0.18% Imperial Brands (IMB) 1,658.50p 0.06% Kingfisher (KGF) 237.00p 0.00% National Grid (NG.) 1,179.00p -0.04% Tesco (TSCO) 271.20p -0.07% BAE Systems (BA.) 755.00p -0.13% Unilever (ULVR) 3,589.50p -0.21%

FTSE 100 - Fallers

Entain (ENT) 1,263.00p -7.88% Glencore (GLEN) 458.10p -6.05% Rightmove (RMV) 527.40p -5.62% Antofagasta (ANTO) 1,385.50p -4.91% Flutter Entertainment (CDI) (FLTR) 8,084.00p -4.89% Croda International (CRDA) 6,708.00p -4.69% Scottish Mortgage Inv Trust (SMT) 793.80p -4.64% Rio Tinto (RIO) 5,188.00p -4.63% Anglo American (AAL) 3,329.00p -4.57% Smith (DS) (SMDS) 309.00p -4.57%

FTSE 250 - Risers

QinetiQ Group (QQ.) 366.40p 7.57% Energean (ENOG) 1,348.00p 3.45% Polymetal International (POLY) 258.80p 2.70% Clipper Logistics (CLG) 868.00p 2.24% Wood Group (John) (WG.) 229.40p 2.23% NCC Group (NCC) 187.40p 1.30% Wizz Air Holdings (WIZZ) 2,989.00p 1.25% Vivo Energy (VVO) 147.00p 0.82% Mitchells & Butlers (MAB) 211.60p 0.76% Greencore Group (CDI) (GNC) 109.60p 0.74%

FTSE 250 - Fallers

Ferrexpo (FXPO) 139.10p -8.61% Chrysalis Investments Limited NPV (CHRY) 134.00p -8.47% Allianz Technology Trust (ATT) 219.50p -8.16% Victrex plc (VCT) 1,658.00p -7.79% Pantheon International (PIN) 264.00p -7.37% Syncona Limited NPV (SYNC) 167.60p -6.26% Blackrock Throgmorton Trust (THRG) 554.00p -6.26% Oxford Instruments (OXIG) 2,100.00p -6.25% Baillie Gifford US Growth Trust (USA) 166.40p -5.99% Trustpilot Group (TRST) 104.70p -5.93%