London midday: Rebound in stocks fade as UK construction PMI misses forecasts
The early rebound in London stocks on Wednesday faded at midday after worse-than-expected data on UK construction activity.
The purchasing managers' index climbed to 57.3 last month from 57.1 in July, missing forecasts for a reading of 57.5m, Markit/CIPS revealed. However, it remained comfortably above the 50 level that signals expansion in the sector.
The data follows disappointing manufacturing PMIs in China, the UK, Europe and the US, which sent stocks lower on Tuesday. In particular, two separate reports showing a contraction in Chinese manufacturing fuelled concerns about the slowdown in the world’s second largest economy.
“Early gains have turned to ashes as the second day of September begins,” said Chris Beauchamp, senior market analyst at IG.
“The closure of Chinese markets for the WWII commemorations offers a glimmer of hope that indices in the developed world can stage some sort of recovery, but weak economic data from the US, Canada and Australia over the past 24 hours confirms that the world has bigger problems than just China. Inevitably, Fed tightening concerns are still weighing, and today’s action after the open still suggests that rallies are there to be sold, rather than dips being bought.“
Looking ahead to afternoon trade, the US private payrolls report is due at 1315 BST and US factory orders figures will be published at 1500 BST.
In company news, ASOS reversed an earlier decline after the founder of the online fashion retailer stepped down as chief executive after 15 years.
Ashtead surged as the British industrial equipment hire company said it was on track to achieve its full-year expectations after reporting a strong first quarter.
Tesco dipped as the supermarket chain reportedly chose private equity firm MBK Partners as preferred bidder to buy its South Korean unit.
Hikma Pharmaceuticals rallied after Shore Capital upgraded the stock to a ‘buy’ rating.
Online gambling company GVC Holdings dropped as it said it could go hostile in the £1bn tug-of-war for Bwin.party Digital Entertainment if Bwin's board recommends a lower offer from 888 Holdings Plc, the Times reported.
Royal Dutch Shell and BP shares were sitting lower as oil prices continued to slide with Brent crude down 1.8% to $48.66 per barrel and West Texas Intermediate down 2.6% to $44.34 at 1201 BST.
Miners Antofagasta, BHP Billiton and Anglo American advanced as gold and silver prices climbed.
Market Movers
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FTSE 100 6,056.30 -0.04%
FTSE 250 16,824.70 -0.09%
FTSE 100 - Risers
Ashtead Group (AHT) 968.00p +5.56%
Hikma Pharmaceuticals (HIK) 2,306.00p +3.64%
3i Group (III) 471.80p +2.74%
Antofagasta (ANTO) 589.50p +2.61%
BHP Billiton (BLT) 1,081.00p +2.37%
Inmarsat (ISAT) 987.50p +2.17%
Anglo American (AAL) 697.60p +1.93%
Intu Properties (INTU) 320.00p +1.59%
ARM Holdings (ARM) 928.00p +1.59%
International Consolidated Airlines Group SA (CDI) (IAG) 535.50p +1.42%
FTSE 100 - Fallers
Glencore (GLEN) 128.25p -3.93%
Standard Chartered (STAN) 712.00p -1.68%
BP (BP.) 344.65p -1.36%
Sainsbury (J) (SBRY) 234.80p -1.30%
G4S (GFS) 249.00p -1.11%
Royal Dutch Shell 'A' (RDSA) 1,620.50p -1.07%
Pearson (PSON) 1,081.00p -1.01%
Royal Dutch Shell 'B' (RDSB) 1,630.50p -0.94%
Burberry Group (BRBY) 1,330.00p -0.82%
Aviva (AV.) 465.60p -0.79%
FTSE 250 - Risers
OneSavings Bank (OSB) 372.00p +3.77%
Marshalls (MSLH) 350.50p +3.70%
Supergroup (SGP) 1,493.00p +3.32%
Vedanta Resources (VED) 579.00p +3.21%
St. Modwen Properties (SMP) 460.70p +3.00%
Redefine International (RDI) 53.75p +2.97%
Synergy Health (SYR) 1,626.00p +2.33%
Workspace Group (WKP) 896.00p +2.28%
DCC (DCC) 4,890.00p +2.00%
Fidelity China Special Situations (FCSS) 116.30p +1.57%
FTSE 250 - Fallers
Halfords Group (HFD) 456.00p -10.59%
Diploma (DPLM) 660.50p -7.69%
Zoopla Property Group (WI) (ZPLA) 244.10p -4.98%
Ophir Energy (OPHR) 94.25p -4.02%
Tullow Oil (TLW) 211.20p -3.43%
Telecom Plus (TEP) 1,055.00p -2.77%
Premier Oil (PMO) 100.90p -2.70%
esure Group (ESUR) 235.70p -2.60%
Lonmin (LMI) 32.57p -2.51%
Just Retirement Group (JRG) 186.80p -2.45%
FTSE TechMARK - Risers
Filtronic (FTC) 6.88p +10.00%
Oxford Biomedica (OXB) 8.00p +3.90%
SDL (SDL) 377.50p +1.41%
XP Power Ltd. (DI) (XPP) 1,640.00p +0.92%
Triad Group (TRD) 36.25p +0.69%
Consort Medical (CSRT) 952.50p +0.26%
IShares Euro Gov Bond 7-10YR UCITS ETF (IEGM) € 199.01 +0.15%
E2V Technologies (E2V) 237.00p +0.11%
FTSE TechMARK - Fallers
UCW Limited (UCW) A$0.01 -6.67%
Skyepharma (SKP) 315.00p -2.70%
Torotrak (TRK) 5.94p -1.85%
Oxford Instruments (OXIG) 825.50p -1.84%
NCC Group (NCC) 238.25p -0.73%
Ricardo (RCDO) 857.00p -0.35%
Spirent Communications (SPT) 77.75p -0.32%
Dialight (DIA) 631.00p -0.32%