London shares trod water on Monday as traders kept their powder dry ahead of a wave of economic data later this week.
The FTSE 100 Index pared early losses to stand 3.88 points ahead at 6361 after Japan's Nikkei 225 dipped due to softer-than-expected industrial output data.
It is a big week for economic events, with the European Central Bank (ECB) and the Organisation of Petroleum Exporting Countries (OPEC) convening to set, respectively, eurozone interest rates and oil prices. US job data is due at the end of the week.
Chris Beauchamp at spread-betting firm IG said: "US markets return in earnest today after Thanksgiving. While they will be keeping one eye on the ECB, any fresh QE announcement in Frankfurt is likely to have less impact on Wall Street, where the focus will be on the Fed meeting later in the month.
"The week culminates in non-farm payrolls, with today seeing just the Chicago PMI to act as a warm-up to bigger events later on. Ahead of the open, we expect the Dow to start at 17,836, up nearly 40 points from Friday’s close."
Back in London, the Bank of England reported that mortgage approvals for house purchases rose modestly last month.
Re-mortgages edged back from a near 7-year high in September and the value of mortgage lending hit its highest level since April 2008.
European stocks tracked weakness in China overnight before a decision from the International Monetary Fund (IMF) on Monday as to whether to include the yuan in its basket of global currencies.
Anglo American (LON:AAL) pared early losses to stand up 3.8p at 404p and Glencore (LON:GLEN) rose 3.5p to 95.38p, but Rio Tinto (LON:RIO) was down 0.5p at 2198.5p.
Back in the market, TalkTalk (LON:TALK) was 3.7p, or nearly 1.5%, lower at 240.4p as broker Berenberg reportedly downgraded the telecoms group to 'sell' from 'hold' and slashed its price target to 208p from 290p as it cut estimates materially.
Cranswick (LON:CWK) sizzled 50p, or 2.9%, to 1750p as the sausage and fresh pork group served up higher half-year revenue and profits.
Investors jumped off National Express (LON:NEX) by a penny to 321.6p as it said it was taking part in an expanded partnership with transport authorities and rivals in Birmingham.
Oil and gas explorer and producer Oilex (LON:OEX) spurted 0.02p, or 3.8%, to 0.68p on news that it had appointed an oil production expert to its board.
But zinc recycler Zincox (LON:ZOX) softened 0.58p to 0.92p after agreeing to restructure its debts with partner Korea Zinc Company, the first stage of a refinancing that will include raising equity funds.
Vast Resources (LON:VAST) ticked up 0.11p, or 9.6%, to 1.25p after a Romanian appeal court confirmed the proposed merger between two of its subsidiaries in the country.
LONDON OPEN
London shares moved lower on Monday after a downturn in Asian markets sparked by Japanese economic data.
The FTSE 100 Index fell 13.77 points to 6361 following a 136-point fall in Japan's Nikkei 225, although the Shanghai Composite pared losses to close slightly up.
Japanese industrial output rose for the second consecutive month and by 1.4% month-on-month, but it was slightly softer than expected.
European stocks tracked weakness in China overnight before a decision from the International Monetary Fund (IMF) on Monday as to whether to include the yuan in its basket of global currencies.
Miners took a hit, with Anglo American (LON:AAL) off 14p at 386.15p, Rio Tinto (LON:RIO) down 39p at 2160p and Glencore (LON:GLEN) subsiding 2.08p to 89.8p.
It is a big week for meetings and data with the European Central Bank and the Organisation of Petroleum Exporting Countries (OPEC) convening to set, respectively, eurozone interest rates and oil prices. US job data is due at the end of the week.
While most of the data events are not UK-focused, each will have its own unique impact on the mood of the London market.
Having said that, the Bank of England reported that mortgage approvals for house purchases rose modestly last month.
Re-mortgages edged back from a near 7-year high in September and the value of mortgage lending hit its highest level since April 2008
Back in the market, TalkTalk (LON:TALK) was 7.1p, or nearly 3%, lower at 237p as broker Berenberg reportedly downgraded the telecoms group to 'sell' from 'hold' and slashed its price target to 208p from 290p as it cut estimates materially.
Oil and gas explorer and producer Oilex (LON:OEX) spurted 0.02p, or 3.8%, to 0.68p on news that it had appointed an oil production expert to its board.
But zinc recycler Zincox (LON:ZOX) softened 0.05p to 1.45p after agreeing to restructure its debts with partner Korea Zinc Company, the first stage of a refinancing that will include raising equity funds.
MARKET PREVIEW
The FTSE 100 is set to open its account for the week in the red with the blue-chip index taking its cue from Asia.
Overnight Asia’s stocks indexes were depressed, with Shanghai Composite (down 0.4%) still reeling from last week’s regulatory swoop on the market’s short sellers.
“Compounding the fear factor was news that key executives from large domestic brokerages were reported missing, seemingly being hauled up for investigations,” said Bernard Aw, a market analyst for the spread betting firm IG.
The continued selling followed the worst week for Chinese equities since August, when at that point the market feeling the backwash of a major reset.
Japan’s Nikkei 225 fell 0.7%, with energy stocks hardest hit, while Australia’s ASX index (also down 0.7%) felt the brunt of the commodity sector sell down.
Back in the UK, the FTSE 100 is set for a 24 point decline on open to trade at 6,355.15, according to the spread-betting firms.
It is a big week for meetings and data with the European Central Bank and OPEC convening to set, respectively, interest rates and oil prices. Then to end the week we have US jobs data.
While none of them are UK-focused each will have its own unique impact on the mood of the London market.
On the corporate front, there is plenty of scheduled news from the small and mid-tier players. Trading statements from Merlin Entertainment and easJet provide the pick of the first division players.