London open: Miners and housebuilders slump, May returns empty-handed

London stocks fell in early trade on Friday, taking their cue from a downbeat Asian session following the release of weak Chinese data and after European Union leaders told Theresa May that the Brexit withdrawal agreement was not open for renegotiation.

At 0830 GMT, the FTSE 100 was down 0.9% to 6,818.60, while the pound was down 0.4% against the dollar at 1.2594 and 0.3% lower versus the euro at 1.1108 after Prime Minister Theresa May’s EU charm offensive yielded no breakthroughs.

European Union leaders rejected May’s plea to put a time limit on the Irish backstop, in a blow to her hopes of reaching a deal at a Brussels summit on Thursday.

May had arrived at the European Council meeting hoping to win changes on the contentious backstop, designed to stop a hard border with Ireland in the event of no free trade deal with the EU, and bring back a deal she get could get through parliament. But it was opposed by Ireland, France, Sweden, Spain and Belgium, who voiced doubts that the prime minister would be able to sell the technical concession to hostile MPs in Westminster.

Meanwhile, Chinese data released earlier in the morning showed that industrial production rose 5.4% on the year in November, versus expectations of 5.9% growth. Retail sales were up 8.1%, falling short of expectations for 8.8% growth and marking the weakest pace of growth since 2003.

Spreadex analyst Connor Campbell said: "It’s not only more evidence that the superpower’s economy is slowing down, but another reminder of the impact the trade tensions between the US and China are having, despite the stop-start progress made between the pair in the last fortnight or so."

Miners - which are heavily dependent on demand from China - were under pressure after the data, with Glencore, BHP and Antofagasta all lower.

Housebuilders also retreated amid worries about Brexit, with Persimmon, Taylor Wimpey, Barratt Developments and Crest Nicholson all under the cosh.

In individual corporate news, Burberry was the biggest loser after French luxury goods company LVMH Moet Hennessy Louis Vuitton said it had agreed to acquire London-based Belmond, an owner and operator of high-end hotels around the world.

British American Tobacco was in the red as it announced two new management board roles, in a bid to accelerate the implementation of its strategy, with a director of new categories to report directly to the chief marketing officer.

The FTSE 100 cigarette giant also announced the new director of digital and information, to report directly to the CEO and be responsible for “driving digital transformation”. It said the roles of chief operating officer and group business development director would cease to exist.

Balfour Beatty rallied as it said its performance for the year will be above previous expectations after sales of its interests in two infrastructure projects exceed directors' valuations. The construction group said it was on track to achieve industry-standard margins in all earnings-based businesses in the second half of 2018.

Aggreko edged higher after saying that its subsidiary, Aggreko Events Services Japan Limited (AESJL), has been awarded a $200m supply contract for temporary electricity generation by The Tokyo Organising Committee for the Olympic and Paralympic Games.

Market Movers

FTSE 100 (UKX) 6,818.60 -0.86%
FTSE 250 (MCX) 17,709.79 -0.61%
techMARK (TASX) 3,340.48 -0.65%

FTSE 100 - Risers

GVC Holdings (GVC) 694.00p 4.91%
Wood Group (John) (WG.) 588.80p 1.52%
Kingfisher (KGF) 231.50p 0.61%
Smiths Group (SMIN) 1,409.00p 0.46%
Bunzl (BNZL) 2,447.00p 0.41%
Paddy Power Betfair (PPB) 6,440.00p 0.23%
AstraZeneca (AZN) 6,106.00p 0.07%
Associated British Foods (ABF) 2,171.00p 0.00%
Royal Dutch Shell 'A' (RDSA) 2,341.00p 0.00%
Pearson (PSON) 933.41p -0.13%

FTSE 100 - Fallers

Burberry Group (BRBY) 1,715.00p -3.54%
Imperial Brands (IMB) 2,354.00p -2.81%
Persimmon (PSN) 1,895.50p -2.77%
Royal Mail (RMG) 293.60p -2.75%
Taylor Wimpey (TW.) 131.55p -2.70%
TUI AG Reg Shs (DI) (TUI) 1,159.50p -2.56%
BT Group (BT.A) 245.40p -2.41%
Barratt Developments (BDEV) 443.10p -2.12%
International Consolidated Airlines Group SA (CDI) (IAG) 598.19p -2.00%
easyJet (EZJ) 1,077.12p -1.99%

FTSE 250 - Risers

Bakkavor Group (BAKK) 141.60p 4.89%
Balfour Beatty (BBY) 256.70p 4.31%
Superdry (SDRY) 410.20p 2.24%
Sirius Minerals (SXX) 21.68p 1.98%
Hastings Group Holdings (HSTG) 183.90p 1.83%
Meggitt (MGGT) 475.30p 1.39%
Hays (HAS) 142.70p 1.28%
Wizz Air Holdings (WIZZ) 2,920.80p 1.17%
IWG (IWG) 206.40p 0.93%
Rank Group (RNK) 138.20p 0.88%

FTSE 250 - Fallers

Kaz Minerals (KAZ) 527.00p -3.76%
Vivo Energy (VVO) 110.40p -3.58%
Crest Nicholson Holdings (CRST) 327.20p -2.62%
Inmarsat (ISAT) 412.40p -2.53%
OneSavings Bank (OSB) 337.60p -2.43%
Euromoney Institutional Investor (ERM) 1,130.00p -2.42%
Contour Global (GLO) 159.20p -2.33%
Capita (CPI) 111.85p -2.31%
Spectris (SXS) 2,250.00p -2.30%
Grafton Group Units (GFTU) 672.50p -2.25%