London open: UK stocks decline as volatility continues

UK stocks declined on Monday morning on a quiet day for economic data, with investors still showing caution following a volatile week for markets last week.

The FTSE 100 was trading 0.4% lower at 6,283 in early deals.

Despite a partial recovery on Friday, European equity markets registered their fourth consecutive weekly decline last week on the back of concerns about slowing global growth, bond-market volatility and the outlook for US monetary policy.

"If nothing else, last week’s volatility has shaken a number of investors out of a long running complacency that all was well with the world, and in particular with stock markets, and their valuations," said analyst Michael Hewson from CMC Markets UK.

With no major data due for release, investors will be looking ahead to a wave of economic indicators from China due out on Tuesday, including gross domestic product (GDP) estimates for the third quarter.

Chinese GDP is forecast to have slowed to an annual growth rate of just 7.2%, from 7.5% in the second quarter. Industrial production, retail sales and fixed-asset investment data for September is also due out.

Spirit jumps on Greene King offer

Pub group Spirit was making strong gains after receiving a fresh takeover offer from rival Greene King at about 109.5p per share, equal to £723m. Spirit has told Greene King it would recommend the offer subject to approval of other terms and is in talks with them.

Shares in AIM-listed telecoms company Daisy Group also jumped after the board reached an agreement on a recommended cash offer of £494m from a consortium of investors including its boss Matthew Riley.

Supermarket group Tesco was trading higher ahead of its interim report on Thursday, alongside which the company should provide initial findings from an investigation into accounting irregularities.

Engine maker Rolls-Royce's share price was dented by downgrades from Liberum and JPMorgan Cazenove, who removed their positive ratings on the stock.

Pharmaceutical firm Shire saw its stock fall after announcing that interim chief financial officer James Bowling would be leaving next year to join Severn Trent. The announcement came as the water provider revealed it would be reducing the number of its board members from 11 to eight.

Consumer goods maker McBride was in demand after it hailed a solid start to the year and said it was trading in line with hopes.

President Energy made its first-ever oil discovery at its majority-owned Pirity concession in the Paraguayan Chaco region, causing shares to rocket over 50% early on.

Market Movers
techMARK 2,618.81 -0.19%
FTSE 100 6,283.03 -0.43%
FTSE 250 14,752.56 -0.03%

FTSE 100 - Risers
Tesco (TSCO) 177.85p +1.89%
Legal & General Group (LGEN) 223.40p +1.45%
InterContinental Hotels Group (IHG) 2,182.00p +1.21%
Direct Line Insurance Group (DLG) 267.60p +1.13%
St James's Place (STJ) 674.00p +0.90%
TUI Travel (TT.) 341.80p +0.80%
Aberdeen Asset Management (ADN) 407.50p +0.62%
Associated British Foods (ABF) 2,582.00p +0.51%
Meggitt (MGGT) 443.60p +0.50%
Barclays (BARC) 214.05p +0.45%

FTSE 100 - Fallers
Petrofac Ltd. (PFC) 1,036.00p -2.26%
Tullow Oil (TLW) 512.50p -2.19%
ARM Holdings (ARM) 857.00p -2.06%
Travis Perkins (TPK) 1,595.00p -1.60%
Sainsbury (J) (SBRY) 240.90p -1.59%
Kingfisher (KGF) 294.60p -1.47%
Carnival (CCL) 2,182.00p -1.45%
Royal Dutch Shell 'A' (RDSA) 2,119.00p -1.40%
Royal Dutch Shell 'B' (RDSB) 2,210.00p -1.36%
BG Group (BG.) 1,050.50p -1.36%

FTSE 250 - Risers
Afren (AFR) 100.60p +3.18%
Euromoney Institutional Investor (ERM) 1,017.00p +2.73%
Synthomer (SYNT) 203.10p +1.65%
Zoopla Property Group (WI) (ZPLA) 203.00p +1.50%
Fidessa Group (FDSA) 2,218.00p +1.42%
Big Yellow Group (BYG) 514.00p +1.38%
Stock Spirits Group (STCK) 310.80p +1.30%
St. Modwen Properties (SMP) 358.40p +1.24%
Card Factory (CARD) 221.70p +1.23%
Wood Group (John) (WG.) 674.50p +1.20%

FTSE 250 - Fallers
Evraz (EVR) 123.40p -4.12%
Hochschild Mining (HOC) 119.00p -3.25%
Infinis Energy (INFI) 209.20p -2.61%
Rank Group (RNK) 161.00p -2.42%
JD Sports Fashion (JD.) 410.00p -2.17%
Debenhams (DEB) 59.05p -1.99%
Premier Oil (PMO) 256.00p -1.84%
WH Smith (SMWH) 1,053.00p -1.68%
African Barrick Gold (ABG) 194.80p -1.62%
Hays (HAS) 115.00p -1.54%