Volatility was the word of the day for global markets, as London’s blue-chip stocks ended relatively flat despite spending most of the day higher.
A mixed start in the US dampened the mood, with the Dow Jones down 15 points to 17,744, while the broader S&P also nudged lower 2 points to 2,080. The Nasdaq was 4 points better off to 5,087.
Chinese economics were back on the agenda again today.
Joshua Mahony at IG said disappointing industrial production and fixed asset investment numbers were “another dampener”.
Retail sales in the country were higher, however, which he said was a “saving grace”.
In the UK, jobs data was met with mixed reactions, with both the claimant count and average earnings undershooting to dampen the positive mood seen after the unemployment rate fell to 5.3%.
The FTSE100 ended the day just 10 points higher to 6,285, having been some 40 points to the good at lunch.
Leading the way lower was Sainsbury’s (LON:SBRY) as investors Investors stopped shopping for shares the supermarket chain after it reported lower profits and cut its dividend.
The shares fell 19p, or 7%, to 253p after the chain said underlying pre-tax profit fell 17.9% to £308mln from £375mln at the same time last year on a 2% dip in sales to £13.6bn.
Also lower were the oil companies, as the price of a barrel of brent crude slumped 2.3% to US$46.32 while the West Texas Intermediate slipped 2.3% to US$43.20.
Shell (LON:RDSB) lost 1.7%, or 30p to 1,656p while BP (LON:BP.) was down 1.2%, or 4.6p to 378p.
In the mid cap space, Tullow Oil (LON:TLW) slid 7.5% to 197p after it promised further cutbacks, with capital spending planned to reduce by around 36% in 2016.
The oil firm said that capital expenditure (capex) for full year 2015 would amount to around US$1.9bn and next year it was expected to drop to US$1.2bn.
It wasn’t all doom and gloom, as TalkTalk (LON:TALK) muscled it’s way to the top of the FTSE250.
The estimated the cost of the recent database hacking that saw information on thousands of its customers stolen at between £30-35mln, far lower than had been expected.
Meanwhile the company has decided to hike its dividend by 15%, despite many thinking it would be slashed. Snares were 13.2% higher to 246p.
In the small cap space, Energy Technique (LON:ETQ) jumped 11.7% to 335p as Volution Group made a £9.25mln bid for the company, which currently has a market capitalisation of £8mln.
Elsewhere, Xcite Energy (LON:XEL) climbed 5% as it agreed a new partnership with Azinor Catalyst for its UKCS Licence P.1979, its exploration acreage.
Conversely, Uranium Resources (LON:URA) dropped 18.7% to 0.3p after it decided to delay drilling at its Mtonya project until the uranium market picks up.
Finally, Oilex (LON:OEX) plummeted 61% to 0.5p after the company flagged possible delays to the planned two well drill programme at the Cambay field, in India.
It is in dispute with Zeta Resources, a company which had previously agreed to invest US$16.3mln into the company.