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London stocks edged lower in early trade on Monday after Chinese officials poured cold water on hopes that China will relax its Covid restrictions.
At 0845 GMT, the FTSE 100 was down 0.2% at 7,319.28.
Richard Hunter, head of markets at Interactive Investor, said: “Asian markets lost some steam as Chinese authorities denied that it was considering easing its zero-tolerance Covid-19 policy.
“Despite the statement from the authorities, it is believed that the continuing weakness of the Chinese economy could yet prompt an easing of the policy in the New Year.”
Hunter said the Chinese denial set the tone in the UK. “In early exchanges, the miners gave up some of those gains which helped pull the index lower, given its significant exposure to energy in general, while Asian-focused companies also saw some weakness.
“The energy exposure has been something of a blessing and a curse this year on wavering prices and potential demand, although overall a loss for the FTSE 100 in the year to date of just 1% remains a robust performance in comparison to many global peers.”
Disappointing Chinese trade figures added to the downbeat tone. They showed that exports came in worse than expected in October, dragged down by a drop in exports to the EU and softening global demand.
The trade balance rose to $85.2bn from $84.7bn in September, versus consensus expectations of $96bn.
Exports rose 0.3% year-over-year in October, down from 5.7% growth a month earlier and well below consensus expectations of 4.5% growth. Meanwhile, imports rose 0.7% following a 0.3% jump in September. Economists had been expecting no growth.
On home shores, data from mortgage lender Halifax showed house prices in fell in October at the fastest monthly rate since February 2021 amid rising mortgages rates and a downbeat outlook.
Prices declined by 0.4% on the month following a 0.1% dip in September. On the year, meanwhile, house prices were down 8.3% in October following a 9.8% fall a month earlier. A typical UK property now costs £292,598 – a five-month low – down from £293,664 in September.
Kim Kinnaird, director of Halifax Mortgages, said: “While a post-pandemic slowdown was expected, there’s no doubt the housing market received a significant shock as a result of the mini-budget which saw a sudden acceleration in mortgage rate increases. While it is likely that those rates have peaked for now – following the reversal of previously announced fiscal measures – it appears that recent events have encouraged those with existing mortgages to look at their options, and some would-be homebuyers to take a pause.
“Understandably we have also seen consumer caution grow, as industry data shows mortgage approvals and demand for borrowing declining. The rising cost of living coupled with already stretched mortgage affordability is expected to continue to weigh on activity levels. With tax rises and spending cuts expected in the Autumn Statement, economic headwinds point to a much slower period for house prices.”
In equity markets, GSK slumped after saying that its blood cancer drug, Blenrep, failed to meet the main goal of a late-stage study.
B&Q owner Kingfisher was knocked lower by a downgrade to ‘neutral’ at Credit Suisse.
On the upside, Mike Ashley’s Frasers Group rallied as it launched a share buyback programme and following a report the company is among bidders for Made.com.
Paddy Power owner Flutter Entertainment advanced after a New York arbitrator sided with the company in its spat with Fox over FanDuel. Entain also gained.
Energean gushed higher after saying that its Zeus-01 exploration well off the coast of Israel had made a commercial gas discovery of 13bn cubic metres of gas and was conducting post-well analysis of its find.
Top 10 FTSE 100 Risers
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Ocado Group Plc | +7.54% | +47.80 | 681.80 |
| 2 |  |
Flutter Entertainment Plc | +4.52% | +520.00 | 12,030.00 |
| 3 |  |
Sainsbury (j) Plc | +2.87% | +6.00 | 214.70 |
| 4 |  |
Easyjet Plc | +2.72% | +9.70 | 365.70 |
| 5 |  |
International Consolidated Airlines Group S.a. | +2.34% | +2.92 | 127.90 |
| 6 |  |
Marks And Spencer Group Plc | +2.13% | +2.40 | 115.05 |
| 7 |  |
Smurfit Kappa Group Plc | +1.84% | +54.00 | 2,996.00 |
| 8 |  |
Tui Ag | +1.61% | +2.25 | 141.80 |
| 9 |  |
Itv Plc | +1.55% | +1.06 | 69.66 |
| 10 |  |
British Land Company Plc | +1.52% | +5.70 | 380.10 |
Top 10 FTSE 100 Fallers
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Gsk Plc | -2.81% | -40.60 | 1,405.00 |
| 2 |  |
Rolls-royce Holdings Plc | -1.48% | -1.26 | 83.85 |
| 3 |  |
Smith & Nephew Plc | -1.10% | -11.50 | 1,036.50 |
| 4 |  |
Prudential Plc | -1.05% | -9.60 | 904.00 |
| 5 |  |
Shell Plc | -1.01% | -25.50 | 2,501.00 |
| 6 |  |
Halma Plc | -0.93% | -20.00 | 2,137.00 |
| 7 |  |
Bae Systems Plc | -0.85% | -6.80 | 792.00 |
| 8 |  |
Unilever Plc | -0.79% | -32.00 | 4,021.50 |
| 9 |  |
Astrazeneca Plc | -0.78% | -84.00 | 10,658.00 |
| 10 |  |
Admiral Group Plc | -0.69% | -14.00 | 2,006.00 |
Monday newspaper round-up: Autumn Statement, Britishvolt, Waitrose, Meta
More than 138,000 residential and commercial properties in England and Wales are owned by offshore companies, with holdings in London worth a combined £55bn, according to research shared with the Guardian. The findings come as the government begins a crackdown to dismantle the secrecy that surrounds offshore property ownership, which it says has been used by “corrupt elites laundering money through UK property”. – Guardian
Jeremy Hunt will set out tax rises and spending cuts totalling £60bn at the autumn statement under current plans, including at least £35bn in cuts, the Guardian understands. Ministers must submit the key points of the autumn statement to the Office for Budget Responsibility (OBR) by Monday morning. – Guardian
Potential customers of Britishvolt were quoted prices of up to a third higher than competitors as the company prepares to battle cheaper Chinese rivals. One potential buyer told The Telegraph that he was put off by quoted prices for delivery in a few years’ time exceeding today’s prices. Battery prices are generally predicted to decline over time as production methods and technology improve. – Telegraph
Waitrose has insisted its supermarkets are better-stocked than some of its rivals despite claims that a bungled IT project has left many of its stores with empty shelves. The supermarket, which is owned by the John Lewis Partnership, said independent data showed product availability at its branches was higher than at competitors. – Telegraph
Meta is planning to begin large-scale layoffs this week, it emerged last night, in what may be among the largest round of recent culls in tech. The layoffs were expected to affect thousands of employees, with an announcement planned for as soon as Wednesday, according to the Wall Street Journal. – The Times
