LONDON (ShareCast) - (ShareCast News) - London stocks edged higher on Monday after China revealed details of state-business reforms as worse-than-expected data fuelled concerns about the nation's slowdown.
China on Sunday outlined plans to restructure its state-owned enterprises, including partial privatisation. The proposal includes cleaning up and integrating some state firms, Xinhua news agency reported.

The guidelines were jointly issued by the Communist Party's Central Committee and the State Council, China's cabinet.

Elsewhere in China, the National Bureau of Statistics said industrial production rose 6.1% in August compared to a year ago, falling short of analysts' expectations for a 6.5% increase and following the previous month's 6% gain.

Separately, retail sales climbed 10.8% in August, more than the forecast for a 10.6% rise and a 10.5% jump a month ago.

"With investors still unsure about what is going on with respect to the Chinese economy after last week's much weaker than expected inflation data, there is still an expectation that Chinese authorities will have to take further steps to ease monetary policy further in the coming weeks, and it is this, along with a weaker Chinese currency, that is fuelling concerns that we could see China export further deflationary price pressures into the global economy in the coming months," said Michael Hewson, chief market analyst at CMC Markets.

Closer to home, Bank of England policymaker Martin Weale said interest rates must rise "relatively soon".

He said an increase in rates would give the central bank leg room to make cuts in the event of another financial crash.

"With wage growth remaining firm, the tightening labour market means that inflation is likely to rise above target in two to three years' time," Weale wrote in an article for The Scotland on Sunday newspaper.

"Policy needs to be set with reference to this, rather than the current rate of inflation. As a result, it seems likely to me that the Bank Rate will need to rise relatively soon."

Meanwhile, investors are looking ahead to the Federal Reserve's latest policy announcement on Thursday.

On the company front, the Royal Bank of Scotland advanced following reports the lender hired Bank of America Merrill Lynch to prepare a spin-off of its Williams & Glyn-branded retail branches in the second half of 2016.

Trinity Mirror jumped after saying it was in talks to buy out the shares it does not already own in rival Local World Holdings Ltd.

Anglo American edged higher as it completed the sale of its copper business, Anglo American Norte SA, to an investor consortium led by Audley Capital Advisors LLP, with Orion Mine Finance as the principal co-investor.

Chemring Group rose as the protection solutions provider reiterated full-year expectations after reporting a sharp rise in revenue.

Shire climbed as the pharmaceutical company is reportedly mulling options to sweeten its multi-billion dollar, all-stock offer for US biotechnology group Baxalta by putting cash into shareholders' hands sooner.

A measure of mining stocks rallied including Fresnillo, Rio Tinto, BHP Billiton and Randgold Resources as the price of gold gained.

Market Movers

techMARK 3,090.93 +0.51%

FTSE 100 6,153.67 +0.59%

FTSE 250 17,000.96 +0.19%



FTSE 100 - Risers

Fresnillo (FRES) 611.00p +2.60%

Rio Tinto (RIO) 2,444.50p +2.58%

ARM Holdings (ARM) 957.50p +2.52%

BHP Billiton (BLT) 1,083.00p +2.41%

Randgold Resources Ltd. (RRS) 3,715.00p +1.98%

Anglo American (AAL) 731.20p +1.78%

International Consolidated Airlines Group SA (CDI) (IAG) 593.50p +1.71%

Hargreaves Lansdown (HL.) 1,188.00p +1.71%

BG Group (BG.) 1,006.50p +1.67%

AstraZeneca (AZN) 4,349.50p +1.49%



FTSE 100 - Fallers

Morrison (Wm) Supermarkets (MRW) 159.70p -3.33%

Glencore (GLEN) 132.90p -0.67%

Sainsbury (J) (SBRY) 232.30p -0.47%

Marks & Spencer Group (MKS) 503.00p -0.40%

Barclays (BARC) 257.50p -0.37%

Royal Mail (RMG) 469.20p -0.34%

Next (NXT) 7,715.00p -0.32%

Smiths Group (SMIN) 1,100.00p -0.27%

3i Group (III) 473.60p -0.25%

Meggitt (MGGT) 484.90p -0.21%



FTSE 250 - Risers

Acacia Mining (ACA) 246.00p +4.06%

Polymetal International (POLY) 538.00p +3.36%

AL Noor Hospitals Group (ANH) 840.50p +3.19%

Evraz (EVR) 70.70p +2.76%

Henderson Group (HGG) 265.90p +2.55%

Premier Oil (PMO) 84.30p +2.43%

Polar Capital Technology Trust (PCT) 558.00p +2.10%

Lookers (LOOK) 184.10p +1.94%

Man Group (EMG) 164.30p +1.80%

Betfair Group (BET) 3,076.00p +1.72%



FTSE 250 - Fallers

Home Retail Group (HOME) 132.80p -3.14%

Allied Minds (ALM) 475.10p -2.50%

John Laing Group (JLG) 207.00p -2.17%

PayPoint (PAY) 997.00p -2.16%

Kaz Minerals (KAZ) 158.40p -2.10%

Laird (LRD) 364.80p -2.07%

Foxtons Group (FOXT) 234.50p -1.92%

Fidelity China Special Situations (FCSS) 114.10p -1.89%

Lonmin (LMI) 21.96p -1.70%

Vesuvius (VSVS) 387.60p -1.65%



FTSE TechMARK - Risers

Triad Group (TRD) 36.00p +5.11%

Dialight (DIA) 643.50p +3.79%

Skyepharma (SKP) 360.00p +0.84%

KCOM Group (KCOM) 93.25p +0.54%

Consort Medical (CSRT) 960.50p +0.05%

IShares Euro Gov Bond 7-10YR UCITS ETF (IEGM) € 201.14 +0.02%



FTSE TechMARK - Fallers

Ricardo (RCDO) 881.50p -1.95%

NCC Group (NCC) 251.50p -1.76%

Oxford Instruments (OXIG) 620.00p -1.59%

Spirent Communications (SPT) 77.25p -0.96%

CML Microsystems (CML) 350.00p -0.71%

Oxford Biomedica (OXB) 8.64p -0.69%

Sepura (SEPU) 180.00p -0.28%

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