London open: Stocks fall as recession worries weigh

(Sharecast News) - London stocks fell in early trade on Tuesday as worries about a global slowdown continued to weigh on investors' minds. At 0920 BST, the FTSE 100 was down 0.4% at 7,165.42.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: '"There is a wariness on financial markets, as concerns about fresh Covid outbreak add to worries about a global slowdown, with investors staying cautious ahead of a fresh temperature check on the US economy.

"The latest US inflation reading is out tomorrow and already the CPI number is expected to be hot but if it comes in above the expected 8.8% year on year, it's likely to cause a fresh bout of nervousness. Another scorching snapshot is likely to pour concrete into the path laid out by the Federal Reserve for an aggressive path of rate hikes, and cement concerns that growth will be flattened and the economy could contract.

"With shutdowns in China gathering pace as infections rise, it's adding to nervousness about the destructive nature of Covid in the world's second largest economy. Casinos and other businesses in Macau have been closed for the second time since the pandemic began, while millions of residents in Xi'an, Lanzhou and Haikou are in partial lockdown. In Shanghai mass testing is ominously underway yet again, just weeks after the city-wide lockdown was lifted, raising worries about the potential for more supply chain snarl ups."

On home shores, the latest BRC-KPMG Retail Sales Monitor showed that retail sales fell in June, as surging inflation and the cost-of-living crisis caused shoppers to cut spending.

Total sales fell 1.0% last month, compared to an increase of 10.4% in June 2021. On a like-for-like basis, UK retail sales were down 1.3% on June 2021, when they had jumped 6.7%.

In the three months to June, food sales increased 2.2% on a total basis or by 1.6% on an underlying basis. But non-food-sales slid 3.3% and 4.2% on a total and like-for-like basis.

Total retail sales have now declined for three months in a row for the first time since the start of the pandemic in 2020, although the falls then were considerably large.

In equity markets, miners were under the cosh again, with Anglo American and Antofagasta both sharply lower.

British Land, Hammerson and Landsec were all knocked lower by rating downgrades at RBC Capital Markets.

Building materials distributor Grafton was weaker despite reporting a jump in first-half revenue and backing its full-year operating profit expectations.

On the upside, online trading platform Plus500 rallied after it said that revenue and profit for the current year were set to be ahead of market expectations following a solid performance in the first half.

United Utilities ticked higher after agreeing to sell its portfolio of renewable energy assets in a £100m deal.

Market Movers

FTSE 100 (UKX) 7,165.42 -0.43% FTSE 250 (MCX) 18,668.33 -0.90% techMARK (TASX) 4,307.47 -0.75%

FTSE 100 - Risers

SSE (SSE) 1,772.00p 1.49% Melrose Industries (MRO) 157.15p 1.42% Centrica (CNA) 83.84p 1.23% Admiral Group (ADM) 2,343.00p 1.17% BAE Systems (BA.) 820.00p 0.99% United Utilities Group (UU.) 1,043.00p 0.92% Burberry Group (BRBY) 1,665.50p 0.88% Compass Group (CPG) 1,804.50p 0.87% BT Group (BT.A) 194.00p 0.73% Imperial Brands (IMB) 1,818.00p 0.66%

FTSE 100 - Fallers

Dechra Pharmaceuticals (DPH) 3,492.00p -3.91% British Land Company (BLND) 448.00p -3.20% Land Securities Group (LAND) 653.60p -3.17% Flutter Entertainment (CDI) (FLTR) 7,532.00p -2.84% Ocado Group (OCDO) 812.40p -2.78% Airtel Africa (AAF) 145.50p -2.61% Halma (HLMA) 2,090.00p -2.52% Anglo American (AAL) 2,659.00p -2.40% Antofagasta (ANTO) 1,042.50p -2.30% Prudential (PRU) 988.60p -2.12%

FTSE 250 - Risers

Energean (ENOG) 1,048.00p 2.75% Plus500 Ltd (DI) (PLUS) 1,600.00p 2.43% Premier Foods (PFD) 109.40p 1.30% Tullow Oil (TLW) 44.20p 1.24% Beazley (BEZ) 499.80p 1.17% Darktrace (DARK) 329.40p 0.80% Man Group (EMG) 252.30p 0.76% Templeton Emerging Markets Inv Trust (TEM) 147.80p 0.68% QinetiQ Group (QQ.) 379.80p 0.48% Paragon Banking Group (PAG) 488.00p 0.41%

FTSE 250 - Fallers

Chrysalis Investments Limited NPV (CHRY) 90.20p -6.24% Hammerson (HMSO) 19.03p -5.18% Grafton Group Ut (CDI) (GFTU) 728.30p -4.65% Aston Martin Lagonda Global Holdings (AML) 444.20p -4.25% Molten Ventures (GROW) 375.80p -4.08% Bridgepoint Group (Reg S) (BPT) 204.60p -3.85% Ferrexpo (FXPO) 110.80p -3.57% Bellevue Healthcare Trust (Red) (BBH) 156.80p -3.57% IP Group (IPO) 68.65p -3.31% Genus (GNS) 2,450.00p -3.09%