As expected, US markets started slowly, pushing the UK’s main index lower at the close.
An unexpected drop in new US home sales, alongside a dismal Dallas Fed manufacturing index figure, helped the Dow fall further into the red this afternoon.
The 30-company Dow Jones Industrial Average slid 0.1% to 17,630, while the tech-heavy Nasdaq Composite was up 0.2% at 5,041 and the broader S&P 500 lost 0.15% to 2,072.
The FTSE100 had remained flat through most of the day, but ended the day 25 points lower to 6,418.
It was led lower by its oil stocks, ahead of BP (LON:BP.) and Shell’s (LON:RDSB) results this week.
Connor Campbell at Spreadex said both are reportedly poised to see their profits halve. BP lost around 4p to 384p while Shell eased almost 8p to 1,767p.
Miners tumbled in the afternoon as China’s premier took the gloss off dovish statements from the People’s Bank of China (PBoC) last week.
Anglo American (LON:AAL) was at the bottom of the pile, losing 3.1% to 590p while Glencore (LON:GLEN) followed close behind, down 2.7% to 116p.
On the corporate front, fund manager Aberdeen Asset (LON:ADN) topped the leaders despite a firm denial it has put itself up for sale.
Through advisers, Martin Gilbert, Aberdeen’s boss, said he had never made a formal or informal approach to anyone about buying the business, but shares still led the index, gaining 3% to 361p.
In other news, global advertising agency WPP (LON:WPP), said country specific slowdowns in China and Brazil, plus geopolitical issues remain top of business leaders' concerns. Shares were 2% lower, 28p, at 1,451p.
In the midcap space, under-pressure telecom group TalkTalk (LON:TALK) had another £200mln wiped off its market value in the wake of the cyber-attack it suffered last Wednesday.
Shares dropped a further 9% to 233p today, taking the total wiped off its market cap to £500mln in the last four business days.
Conversely, National Express (LON:NEX), gained around 4% to 286p as RBC Capital upgraded the trains and buses group to 'outperform' from 'sector perform', and upped its price target of 310p. Liberum has also upgraded the stock, from 'hold' to 'buy'.
In the small cap world, African Potash (LON:AFPO), rose some 12% to 2.1p as the market gave the thumbs-up to the strengthening of the board, with the latest well-judged recruit being Matt Simmonds, who just happens to be the former Foreign and Commonwealth Minister for Africa.
Elsewhere, Sierra Rutile (LON:SRX), also jumped 12% to 22.4p as it hosts a three-day long visit by investment analysts.
Crop productivity group Plant Impact (LON:PIM), saw gross profit virtually double to £3.5mln, while at the pre-tax level it moved into the black for the first time. Shares rocketed 13.4% to 61p.
It wasn’t all good news, however, as Global Resources Investment Trust (LON:GRIT), fell 17.8% to 5.7p. The company published its latest net asset value per share, which is 35.56p.
Lunchtime Report
The UK’s main index appears to have run out of puff as it failed to build on last week’s gains, despite a supportive global backdrop.
Comments from China’s premier took the gloss off dovish statements from the People’s Bank of China (PBoC) last week.
He said the 7% growth target was becoming less important, and Chris Beauchamp at IG said: “We should read this as China’s government admitting that 7% is now too optimistic as a target”.
He reckoned Premier Li’s meant investors should adjust to the “reality of weaker growth in this hitherto unstoppable powerhouse”.
While there were some rises in Asia overnight, markets in European markets got off to a mixed start of the week.
The German Dax was the only riser, up 17 points to 10,812, while the French Cac40 lost 23 points to 4,901.
In the UK, the FTSE100 was 3 points down to 6,442, following Li XingPing’s comments.
On the corporate front, global advertising agency WPP (LON:WPP), said country specific slowdowns in China and Brazil, plus geopolitical issues remain top of business leaders' concerns.
The company, often regarded as a barometer of economic growth worldwide, saw like-for-like net sales growth pick up in the third quarter, but admitted this was due to soft comparatives.
It found itself at the bottom of the FTSE100 at lunch, more than 2% lower, 31p, at 1,449p.
Conversely, Fund manager Aberdeen Asset (LON:ADN) topped the leaders despite a firm denial it has put itself up for sale.
Through advisers, Martin Gilbert, Aberdeen’s boss, said he had never made a formal or informal approach to anyone about buying the business, but shares still led the index, gaining 3.5% to 363p.
In the midcap space, under-pressure telecom group TalkTalk (LON:TALK) had another £200mln wiped off its market value in the wake of the cyber-attack it suffered last Wednesday.
Shares dropped a further 9% to 233p today, taking the total wiped off its market cap to £500mln in the last four business days.
Meanwhile, sausage-maker Cranswick (LON:CWK) chopped 6p to 1,710p after the World Health Organisation warned bacon, ham and sausages rank alongside cigarettes as a major cause of cancer.
In the small cap world, university-backed tests have shown wearable tech company CloudTag's (LON:CTAG) heart rate technology is almost as good as hospital kit. Shares jumped 5.8% to 2.2p.
Meanwhile, Europa Oil & Gas (LON:EOG), said it now that its owns all of the Frontier Exploration Licence 3/13, offshore Ireland, the value potentially attributable to the company for the asset amounts to US$7bn. Shares jumped 15% to 3.8p.
Conversely, Rambler Metals & Mining (LON:RMM), lost 19% to 3.7p as it said it swung to a loss for the 2015 year amid a backdrop of tough commodity markets.
London Open
London’s blue chips made a quiet start to the week as gains following the sixth rate cut in China last week were clipped back.
FTSE 100 was 21 points lower at 6,421 despite some rises in Asia overnight and a smattering of merger and acquisitions stories.
The mood was also subdued ahead of the US Federal Reserve’s meeting later this week.
Fund manager Aberdeen Asset (LON:ADN) topped the leaders despite a firm denial it has put itself up for sale.
Through advisers, Martin Gilbert, Aberdeen’s boss, said he had never made a formal or informal approach to anyone about buying the business.
Shares rose 4% to 365p nonetheless.
Telecom group TalkTalk’s (LON:TALK) woes continue in the wake of the major hacking breach revealed last week.
Analysts have been totting up how much it cast the firm both to repair and upgrade its cyber security and also to compensate those whose details have been accessed.
Dido Harding, chief executive, said the costs will be less than those reported but the figure mentioned today was £1,000 in compensation for those customers who have been hacked. Shares fell 6% to 241p.
Elsewhere, Majestic Wine (LON:MJW) was little changed as it dropped its six-bottle minimum purchase requirement.
The company said that a trial in selected stores since the spring had proved popular. Shares eased 1% to 350.5p.
Oil tiddler Europa Oil & Gas (LON:EOG) leapt 11% higher to 9.7p as it revealed an independent report had valued Frontier Exploration Licence 3/13, offshore Ireland at up to US$7bn.
Meanwhile, Sovereign Mines of Africa (LON:SMA) climbed 5.8% to 0.9p despite the exclusivity period with a potential partner has now lapsed, but said it remains in talks over a deal.
Elsewhere, Rightster (LON:RSTR) is to bring in a new management team to reboot the fortunes of the YouTube video marketing specialist. Shares gained 6.2% to 9.5p.
Conversely, Rambler Metals & Mining (LON:RMM), lost 13.7% to 4p as it said it swung to a loss for the 2015 year amid a backdrop of tough commodity markets.