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London stocks on the FTSE 100 nudged lower in early trade on Tuesday, unable to cling on to opening gains as miners took a hit from disappointing Chinese data.
At 0905 BST, the FTSE 100 was down 0.1% at 8,766.56.
Heavily-weighted miners were the worst performers on the FTSE 100 after the release of weaker-than-expected Chinese manufacturing data, with Glencore, Antofagasta, Anglo American and Rio Tinto all down.
A survey released earlier showed that activity in China’s manufacturing sector unexpectedly contracted in May. The Caixin/S&P Global manufacturing purchasing managers’ index fell to 48.3 from 50.4 in April, missing expectations for a reading of 50.7. It marked the lowest level since September 2022.
A reading above 50.0 indicates growth, while a reading below signals contraction.
Wang Zhe, senior economist at Caixin Insight Group, said: “Overall, in May, manufacturing supply and demand declined, dragged by overseas demand. Employment continued to shrink, while prices remained weak. Logistics were delayed moderately, with manufacturing stocks remaining stable. Business optimism recovered slightly from April’s low.
“Currently, unfavourable factors affecting China’s economic development remain relatively prevalent. Uncertainty in the external trade environment has increased, adding to domestic economic headwinds
“Major macroeconomic indicators showed a marked weakening at the start of the second quarter. The downward pressure on the economy has significantly intensified compared to preceding periods.”
Elsewhere, defence and aerospace company Chemring rose as it held annual guidance after a jump in interim profits and record order book amid global geopolitical tensions.
With countries looking to spend more on arms to counter threats from Russia and China, Chemring posted a 12% rise in underlying core earnings to £39.8m while its order book soared by a quarter to £1.3bn.
Kier rallied as the construction and property group lifted its operating profit margin target and said it continued to trade well and in line with the board’s expectations in the period to 30 April.
Shares in British American Tobacco nudged lower even as it lifted its full-year revenue outlook, saying it now expects growth of 1% to 2%, up from previous guidance of 1%.
Water company Pennon also lost ground after saying it swung to a full-year underlying pre-tax loss of £35.1m from a profit of £16.8m a year earlier.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Centrica Plc | +3.44% | +5.40 | 162.55 |
| 2 |  |
Airtel Africa Plc | +2.64% | +4.70 | 182.50 |
| 3 |  |
Bae Systems Plc | +2.11% | +40.50 | 1,960.00 |
| 4 |  |
Auto Trader Group Plc | +2.04% | +16.20 | 811.60 |
| 5 |  |
Fresnillo | +1.38% | +17.00 | 1,250.00 |
| 6 |  |
Coca-cola Europacific Partners Plc | +1.34% | +90.00 | 6,800.00 |
| 7 |  |
Rolls-royce | +1.15% | +10.00 | 878.80 |
| 8 |  |
Melrose Industries Plc | +1.15% | +5.30 | 466.20 |
| 9 |  |
National Grid Plc | +0.91% | +9.50 | 1,053.00 |
| 10 |  |
The Sage Group Plc | +0.82% | +10.00 | 1,229.00 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Pearson Plc | -3.18% | -37.00 | 1,125.50 |
| 2 |  |
Rentokil Initial Plc | -2.59% | -9.40 | 353.80 |
| 3 |  |
Anglo American Plc | -2.14% | -47.50 | 2,172.50 |
| 4 |  |
Antofagasta Plc | -1.97% | -35.50 | 1,769.50 |
| 5 |  |
Glencore Plc | -1.93% | -5.50 | 279.30 |
| 6 |  |
Rio Tinto Plc | -1.83% | -80.00 | 4,298.50 |
| 7 |  |
Gsk Plc | -1.81% | -27.50 | 1,489.50 |
| 8 |  |
Bhp Group Limited | -1.66% | -30.00 | 1,781.50 |
| 9 |  |
Bt Group Plc | -1.56% | -2.80 | 176.20 |
| 10 |  |
Lloyds Banking Group Plc | -1.23% | -0.96 | 76.84 |
US close: Stocks close higher despite heightened trade tensions
Major indices closed higher on Monday after China said it would take strong measures to defend its interests as it claimed the US had “severely violated” their recently struck trade agreement.
At the close, the Dow Jones Industrial Average was up 0.08% at 42,305.48, while the S&P 500 advanced 0.41% to 5,935.94 and the Nasdaq Composite saw out the session 0.67% firmer at 19,242.61.
The Dow closed 35.41 points higher on Monday, extending modest gains recorded in the previous session despite Donald Trump claiming that China had violated their preliminary trade agreement, reviving fears that the US may be on the brink of a protracted trade war.
Following Trump’s claims, Beijing went so far as to blame Washington for failing to uphold its end of the deal struck by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng in Geneva, where the pair agreed to a 90-day suspension of the majority of tariffs.
However, National Economic Council director Kevin Hassett indicated over the weekend that Donald Trump and Chinese President Xi Jinping could possibly have a conversation regarding trade before the end of the week.
Trump’s tariffs were mostly struck down by Court of International Trade last week, with the federal court ordering the White House to stop collecting duties. Although a day later, a federal appeals court granted Washington’s request to temporarily pause that ruling.
Tensions between the US and the European Union were also in focus on Monday after Trump told American steelworkers that he would be doubling tariffs on steel imports to 50%, with effect from 4 June, with an EU spokesperson warning that the move “undermines” negotiations. “This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic,” they said.
On the macro front, S&P Global‘s manufacturing PMI was downwardly revised to 52 in May, falling below a preliminary reading of 52.3. New orders to US manufacturers increased and stocks of inputs increased a survey record.
Elsewhere, the Institute for Supply Management‘s manufacturing PMI fell a third straight month in May, dropping to 48.5 from 48.7 in April, missing market expectations for a reading of 49.5.
Finally, construction spending dropped by 0.4% month-on-month in April to a seasonally adjusted annual rate of $2.15trn, according to the Census Bureau, following March’s revised 0.8% decrease and missing market forecasts of a 0.3% rise. Private sector spending fell 0.7%, while public spending edged up 0.4%. On an annualised basis, construction spending shrank by 0.5% in April.
Tuesday newspaper round-up: M&S, Boohoo, commercial landlords
The pay package of Marks & Spencer’s chief executive jumped to more than £7m just weeks before the cyber-attack that rocked the retailer. Stuart Machin received £7.1m for last financial year, up nearly 40% on the £5.1m he took home a year earlier, according to its annual report. He received the bump thanks to a sharp rise in performance-linked bonuses. – Guardian
A coalition of mayors from across England are urging the government to allow local authorities to bring in a Barcelona-style visitor levy to generate income from tourism. The group, led by the Liverpool city region mayor, Steve Rotheram, argues that a visitor levy would unlock vital funding for tourism and cultural infrastructure, empower regional growth and reduce dependence on central government funding. – Guardian
Ed Miliband has been urged to slash taxes on the North Sea to prevent the loss of tens of thousands of jobs. Researchers at Robert Gordon University (RGU) said oil and gas jobs were disappearing faster than new clean energy roles were being created as a result of the slower-than-expected deployment of wind farms. – Telegraph
Boohoo customers are facing unexplained delays for refunds of up to a month as the fashion retailer attempts to navigate financial pressures. In social media posts, dozens of customers of Boohoo brands, which also include Debenhams and PrettyLittleThing, have complained that they sent back goods as long as four weeks ago but their money has not been returned. – Telegraph
Commercial landlords have been warned they could be told to repay “massive” sums received from insurance commissions after a High Court judge told the owner of London’s Trocadero Centre to return payments to a tenant. Insurance experts fear the industry could be facing a “nightmare” as rebates are sought in the wake of the ruling, which found that commissions paid to a landlord should not count as part of the “premium” paid by tenants. – The Times
