London midday: Stocks extend losses on China data, Middle East tensions
By Michele Maatouk
Date: Friday 14 Jun 2019
(Sharecast News) - London stocks had fallen further into the red by midday on Friday as weak Chinese data and Middle East tensions weighed on sentiment.
The FTSE 100 was down 0.6% at 7,321.21, while the pound was off 0.3% against the dollar at 1.2634 and 0.2% lower versus the euro at 1.1221.
The mood was hit after the US blamed Iran for attacks on two oil tankers in the Gulf of Oman. US Secretary of State Michael Pompeo said on Thursday that Iran had threatened earlier to restrain oil transport in the Strait of Hormuz.
Pompeo gave no evidence and did not take any questions from reporters, but Trump administration officials said that at least one of the ships was attacked by mines. They showed a picture of a tanker with a hole caused by a mine that had exploded and an undetonated mine inside.
Spreadex analyst Connor Campbell said: "It is the latest spat between two nations already at odds over the ending of waivers for sanctions on countries importing oil from Iran back in April, and gives Trump another geopolitical stand-off to address at the month's G20 meeting in Osaka."
Meanwhile, uninspiring Chinese data also weighed. Industrial production growth slowed to 5% in May from 5.4% in April, missing expectations for a 5.5% increase and marking the worst level since February 2002.
Fixed asset investment rose 5.6% in May, down from 6.1% growth in April and slowing to its worst level in seven months. The figures also mixed expectations for an unchanged reading.
Retail sales were the only bright spot, with growth of 8.6% in May compared to 7.2% the month before. This was ahead of analysts' expectations of 8.1% growth.
Capital Economics said: "Another disappointing batch of activity data in May reinforces our view that growth will probably weaken a bit more this quarter. With consumer and business sentiment likely to sour further as the trade war escalates, additional policy easing will be needed to shore up growth."
In equity markets, exhibitions and information company Ascential was in the red despite saying that trading was in line with full year expectations with its product design, marketing and sales divisions all reporting organic first half revenue growth.
Construction, services and property group Kier tumbled following a report that the company is preparing to sell its housebuilding unit amid increasing evidence of financial pressure on the group. According to The Times, Kier has sounded out advisers about the potential to sell the division, which is understood to be valued at between £100m and £150m.
Amigo Holdings retreated as it said chief executive Glen Crawford has left due to ill health, leaving the guarantor loans company without a boss until Crawford's replacement gets regulatory approval.
On the upside, precious metals miner Fresnillo shone as gold rallied to a 14-month high on its safe-haven appeal.
Market Movers
FTSE 100 (UKX) 7,321.21 -0.64%
FTSE 250 (MCX) 19,106.28 -0.34%
techMARK (TASX) 3,592.61 -0.49%
FTSE 100 - Risers
Fresnillo (FRES) 831.02p 2.29%
Evraz (EVR) 696.60p 1.10%
National Grid (NG.) 826.70p 1.00%
Compass Group (CPG) 1,900.61p 0.94%
Flutter Entertainment (FLTR) 5,874.00p 0.75%
Marks & Spencer Group (MKS) 217.60p 0.74%
Relx plc (REL) 1,893.87p 0.71%
Burberry Group (BRBY) 1,753.00p 0.60%
Hargreaves Lansdown (HL.) 1,882.50p 0.45%
Rentokil Initial (RTO) 385.80p 0.34%
FTSE 100 - Fallers
ITV (ITV) 106.10p -3.55%
NMC Health (NMC) 2,278.00p -3.39%
Auto Trader Group (AUTO) 566.80p -2.31%
Legal & General Group (LGEN) 265.10p -2.07%
BT Group (BT.A) 205.25p -2.03%
Tesco (TSCO) 224.93p -1.99%
Pearson (PSON) 794.80p -1.85%
Berkeley Group Holdings (The) (BKG) 3,540.00p -1.80%
Melrose Industries (MRO) 171.35p -1.75%
Imperial Brands (IMB) 1,981.00p -1.54%
FTSE 250 - Risers
Vivo Energy (VVO) 136.00p 6.25%
CLS Holdings (CLI) 222.50p 4.46%
Stobart Group Ltd. (STOB) 109.15p 3.56%
Hochschild Mining (HOC) 181.00p 3.31%
Centamin (DI) (CEY) 107.45p 3.27%
Rank Group (RNK) 157.40p 2.61%
Jupiter Fund Management (JUP) 384.40p 2.51%
Bakkavor Group (BAKK) 128.40p 2.07%
Royal Mail (RMG) 199.40p 1.97%
Fisher (James) & Sons (FSJ) 1,882.00p 1.95%
FTSE 250 - Fallers
Kier Group (KIE) 164.37p -18.95%
TalkTalk Telecom Group (TALK) 109.90p -3.93%
Premier Oil (PMO) 69.88p -3.69%
Saga (SAGA) 38.30p -3.58%
Provident Financial (PFG) 441.10p -3.48%
Contour Global (GLO) 193.00p -3.31%
Lancashire Holdings Limited (LRE) 695.50p -3.27%
Just Group (JUST) 55.00p -3.25%
Ascential (ASCL) 369.00p -2.89%
Moneysupermarket.com Group (MONY) 382.30p -2.80%
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