London open: UK stocks drop to five-month low ahead of CPI data

UK stocks dropped into the red for a third straight day on Tuesday on the back of ongoing concerns about Greece, a sell-off in China and caution ahead of inflation data.The FTSE 100 was trading 0.55% lower at 6,673.49 early on, after hitting a three-month closing low of 6,710.52 on Monday.The index has not finished below the 6,700 level since 20 January when it settled at 6,620.10.An abrupt end to debt talks on Sunday night in Brussels between Greece and its lenders has rattled investors' nerves over recent days, as discussions collapsed after just 45 minutes on the back of disagreements over issues such as pension reforms and tax rates.Meanwhile, stocks in Shanghai plunged again on Tuesday due to weakness in the financial sector as regulators tightened margin lending regulations and investors showed concerns and a new barrage of IPOs."The FTSE has already touched a five-month low this Tuesday, however briefly; yet the arrival of tangible news in the form of the UK's latest inflation figures later in the morning could provide some respite for the continually Eurozone-led index," said Spreadex analyst Connor Campbell.UK consumer price index (CPI) data due out at 09:30 is expected to show that prices bounced back in May after turning negative for the first time on record the month before. The annual rate of change in the CPI, the main measure of UK inflation, is predicted to show a 0.1% increase last month, according to the majority of analysts, following a 0.1% fall in April.UK producer price and retail price indices will also be released on Tuesday, along with an influx of data abroad, including building permits and housing starts in the States, the ZEW business sentiment index in Germany and new car registrations in Europe.Defensives gainA reduction in risk appetite benefitted stocks in defensive sectors such as tobacco and pharmaceuticals. British American Tobacco, Imperial Tobacco, AstraZeneca and Glaxosmithkline were all edging higher in London.GSK was also up on rumours it could become the latest takeover target in the industry. According to the Daily Mail, market participants are speculating that the company may face an approach from Switzerland's Roche or US company Johnson & Johnson at about 1900p per share.Mining stocks were among the worst performers, with Rio Tinto, Randgold and Antofagasta all in negative territory.Leisure group Whitbread fell despite saying it had started the new financial year well, as strong growth at its Costa and Premier Inn brands made up for weakness in the restaurants division.Industrial equipment hire company Ashtead underwhelmed with a 33% rise in full-year pre-tax profit to £473.8m on strong US and UK markets.Market MoverstechMARK 3,135.99 -0.49%FTSE 100 6,673.49 -0.55%FTSE 250 17,605.59 -0.69%FTSE 100 - RisersBritish American Tobacco (BATS) 3,452.00p +1.19%National Grid (NG.) 854.00p +0.64%GlaxoSmithKline (GSK) 1,358.00p +0.52%Imperial Tobacco Group (IMT) 3,186.00p +0.35%AstraZeneca (AZN) 4,151.50p +0.06%Tesco (TSCO) 214.10p +0.05%FTSE 100 - FallersInternational Consolidated Airlines Group SA (CDI) (IAG) 494.60p -2.73%Royal Mail (RMG) 492.60p -2.46%CRH (CRH) 1,791.00p -2.13%TUI AG Reg Shs (DI) (TUI) 1,150.00p -1.79%Antofagasta (ANTO) 715.50p -1.72%G4S (GFS) 276.60p -1.67%Randgold Resources Ltd. (RRS) 4,556.00p -1.51%Rio Tinto (RIO) 2,764.50p -1.50%easyJet (EZJ) 1,527.00p -1.48%Glencore (GLEN) 274.15p -1.47%FTSE 250 - RisersLadbrokes (LAD) 120.20p +2.73%CLS Holdings (CLI) 1,958.00p +2.03%Daejan Holdings (DJAN) 5,775.00p +1.67%NMC Health (NMC) 788.50p +1.09%Pets at Home Group (PETS) 276.50p +1.02%Jimmy Choo (CHOO) 159.30p +0.82%Rank Group (RNK) 219.10p +0.78%Virgin Money Holdings (UK) (VM.) 448.90p +0.76%JD Sports Fashion (JD.) 673.50p +0.75%Aberforth Smaller Companies Trust (ASL) 1,170.00p +0.52%FTSE 250 - FallersFoxtons Group (FOXT) 247.10p -2.95%Crest Nicholson Holdings (CRST) 529.50p -2.75%Lonmin (LMI) 126.20p -2.70%Evraz (EVR) 146.00p -2.67%Vesuvius (VSVS) 391.70p -2.61%Kaz Minerals (KAZ) 237.90p -2.50%Thomas Cook Group (TCG) 136.30p -2.43%Ophir Energy (OPHR) 119.00p -2.38%Allied Minds (ALM) 549.50p -2.14%Fidelity China Special Situations (FCSS) 165.00p -2.08%