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London midday: UK stocks pull back from two-week high as global data disappoints

Mon, 08th Dec 2014 12:16

Weak global economic data and a bout of profit taking following last week's strong US jobs report saw UK stocks decline on Monday.London's equity market reached a two-week high on Friday, while Wall Street indices reached new records after the news that the US economy added 321,000 jobs in November, its biggest monthly gain in three years.Stock futures in New York, however, were retreating in pre-market trade on Monday on the back of disappointing figures from Japan, China and Germany.The FTSE 100 was down 0.8% at 6,688 by midday after closing out Friday's session at 6,742.84, its highest close since 21 November.The contraction in Japanese gross domestic product (GDP) was worse than originally thought in the July-September period, as investment and public spending increased by less than expected. Japanese GDP shrank at an annual rate of 1.9%, according to the Japanese Cabinet Office, compared with the initial estimate of a 1.6% contraction.China's trade surplus rose to a record high in November, but growth in exports slowed dramatically and imports declined. Chinese imports fell at a 6.7% year-on-year clip in November, versus a rise of 4.7% in October, while annual export growth slowed to 4.7% from 10.6% the month before.Meanwhile, German industrial production increased by just 0.2% in October, disappointing analysts who had expected 0.4% growth. September's data was also revised lower to show an increase of 1.1%, compared with the initial 1.4% estimate.Sainsbury's gains on takeover hopes, oil stocks fallUK grocery chain J Sainsbury was on the rise after reports that an activist fund is talking with investors about buying up shares in the retailer. The Sunday Telegraph said Crystal Amber is looking to build a stake "as part of a bold plan that could see an attempt to engineer a takeover of the supermarket giant".Oil and gas stocks were under the weather with Shell, BP, BG Group and Afren registering losses as the price of Brent crude dropped to its lowest in five years. Brent touched a low of $67.35 a barrel on Monday morning, a level not seen since October 2009.Morgan Stanley has lowered its forecast for the average price of Brent oil next year to $70 from $98, expecting it to trough in the second quarter, at $57.Precious metal producers Randgold Resources and Acacia Mining were making gains as gold and silver prices advanced. Randgold and Acacia were also boosted by Deutsche Bank which lifted its ratings on the stocks to 'buy', saying that the recent plunge in oil prices and weaker currencies should help the companies to lower costs.Insurer Esure was lower after agreeing to buy the remaining 50% stake of price-comparison group Gocompare.com for £95m. The deal will increase Esure's ownership of Newport-based Gocompare to 100% after its initial investment in 2010. Market MoverstechMARK 2,969.97 -0.33%FTSE 100 6,688.33 -0.81%FTSE 250 15,958.73 -0.28% FTSE 100 - RisersRandgold Resources Ltd. (RRS) 4,270.00p +1.93%ARM Holdings (ARM) 955.50p +0.95%Bunzl (BNZL) 1,830.00p +0.88%Tullow Oil (TLW) 399.40p +0.86%TUI Travel (TT.) 452.90p +0.64%Intertek Group (ITRK) 2,330.00p +0.47%Sainsbury (J) (SBRY) 239.40p +0.46%Fresnillo (FRES) 722.50p +0.42%St James's Place (STJ) 824.00p +0.30%Experian (EXPN) 1,058.00p +0.28% FTSE 100 - FallersHargreaves Lansdown (HL.) 952.00p -3.94%Marks & Spencer Group (MKS) 479.80p -3.44%Weir Group (WEIR) 1,794.00p -2.39%Associated British Foods (ABF) 3,208.00p -2.31%SABMiller (SAB) 3,350.00p -2.10%easyJet (EZJ) 1,729.00p -1.82%CRH (CRH) 1,552.00p -1.71%Smith & Nephew (SN.) 1,095.00p -1.71%Smiths Group (SMIN) 1,126.00p -1.66%BHP Billiton (BLT) 1,449.50p -1.66% FTSE 250 - RisersAcacia Mining (ACA) 248.70p +5.20%FirstGroup (FGP) 112.90p +3.67%Ferrexpo (FXPO) 66.10p +2.16%Fidelity China Special Situations (FCSS) 137.20p +2.08%Pace (PIC) 367.40p +1.86%Playtech (PTEC) 670.00p +1.75%Poundland Group (PLND) 324.70p +1.69%Rank Group (RNK) 164.00p +1.55%Hays (HAS) 142.00p +1.50%Centamin (DI) (CEY) 50.35p +1.49% FTSE 250 - FallersAfren (AFR) 43.28p -5.63%Supergroup (SGP) 878.50p -4.72%Hochschild Mining (HOC) 82.40p -4.46%Ted Baker (TED) 2,060.00p -3.56%Lonmin (LMI) 172.20p -3.31%RPC Group (RPC) 592.50p -3.03%Vedanta Resources (VED) 658.00p -3.02%BlackRock World Mining Trust (BRWM) 318.10p -2.84%Serco Group (SRP) 165.00p -2.25%Tate & Lyle (TATE) 591.00p -2.23%
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