London midday: Stocks turn lower as investors mull China data
London stocks had reversed earlier gains to trade lower by midday on Tuesday as investors mulled the latest Chinese trade figures and an easing of lockdown restrictions in some European countries.
The FTSE 100 was down 0.5% at 5,815.89.
Neil Wilson, chief market analyst at Markets.com, said it was "a bit of a slushy day all round" with "no real news to drive fresh impulse".
"So we are in a bit of a sideways pattern until we hit support and bounce back," he said. "There is a bit of uneasiness ahead of earnings season in Europe and US - just how bad do CFOs think it will be, that kind of thing."
The coronavirus pandemic remained at the forefront of investors’ minds as countries such as Austria, Italy and Spain eased some of their lockdown restrictions. As for the UK, the government was set to announce on Thursday that the lockdown will be extended until 7 May.
Market participants were also digesting the latest trade data out of China, which wasn’t as bad as feared.
Exports fell 6.6% in March from a year earlier, beating a consensus estimate of a 14% drop, as imports contracted by 0.9%, customs data showed. Economists had on average expected imports to drop by 9.5%.
The figures showed a partial recovery after exports dropped 17.2% in January to February when the effect of the coronavirus outbreak, which started in China, was at its worst. China's trade balance recovered to a surplus of $20bn in March from a $4bn deficit in the first two months of 2020.
In UK equity markets, InterContinental Hotels and cruise operator Carnival suffered heavy losses, while British American Tobacco was under the cosh following a report the company is under criminal investigation by US regulators over suspected sanctions-busting.
According to The Times, the Department of Justice and the Office of Foreign Assets Control are investigating "suspicions of breach of sanctions".
On the upside, Polymetal, Fresnillo and Centamin all shone as gold prices rose.
AstraZeneca rallied as the pharmaceuticals giant said it will start a clinical trial to gauge the potential of Calquence in the treatment of the exaggerated immune response associated with Covid-19 in severely ill patients.
Transport operator National Express pushed higher after saying it was cancelling its dividend due to the virus outbreak but that it has secured £800m of additional facilities.
Ultra Electronics advanced after saying it will delay the payment of its final dividend due to the outbreak, which it expects to have a "small" impact on revenue.
Market Movers
FTSE 100 (UKX) 5,815.89 -0.46%
FTSE 250 (MCX) 16,160.20 -1.51%
techMARK (TASX) 3,455.35 0.60%
FTSE 100 - Risers
Polymetal International (POLY) 1,606.00p 6.36%
AstraZeneca (AZN) 7,542.00p 5.91%
Fresnillo (FRES) 756.00p 5.82%
Antofagasta (ANTO) 794.00p 4.17%
Auto Trader Group (AUTO) 430.60p 4.01%
Just Eat Takeaway.Com N.V. (CDI) (JET) 7,844.00p 3.78%
Pearson (PSON) 541.00p 3.64%
Aveva Group (AVV) 3,717.00p 3.57%
International Consolidated Airlines Group SA (CDI) (IAG) 255.40p 3.53%
Reckitt Benckiser Group (RB.) 6,374.00p 3.34%
FTSE 100 - Fallers
InterContinental Hotels Group (IHG) 3,464.00p -6.63%
Intermediate Capital Group (ICP) 1,034.00p -5.66%
Carnival (CCL) 911.40p -5.61%
Compass Group (CPG) 1,286.00p -5.41%
ITV (ITV) 72.30p -5.34%
Taylor Wimpey (TW.) 134.50p -5.21%
Melrose Industries (MRO) 96.08p -4.82%
CRH (CRH) 2,285.00p -4.75%
British American Tobacco (BATS) 2,886.00p -4.45%
Rolls-Royce Holdings (RR.) 334.80p -4.40%
FTSE 250 - Risers
Elementis (ELM) 69.60p 10.56%
Marston's (MARS) 44.94p 8.87%
B&M European Value Retail S.A. (DI) (BME) 318.60p 6.16%
Kaz Minerals (KAZ) 416.90p 5.52%
Centamin (DI) (CEY) 144.00p 4.65%
Ultra Electronics Holdings (ULE) 2,022.00p 3.91%
Bakkavor Group (BAKK) 75.30p 3.86%
Just Eat Takeaway.Com N.V. (CDI) (JET) 7,844.00p 3.78%
Petropavlovsk (POG) 23.80p 3.70%
Go-Ahead Group (GOG) 1,243.00p 3.67%
FTSE 250 - Fallers
Hiscox Limited (DI) (HSX) 907.60p -11.75%
Cineworld Group (CINE) 68.40p -11.44%
McCarthy & Stone (MCS) 78.00p -8.45%
Energean Oil & Gas (ENOG) 759.00p -7.66%
Aggreko (AGK) 501.50p -7.56%
Premier Oil (PMO) 29.13p -7.52%
Mitchells & Butlers (MAB) 206.00p -7.42%
Aston Martin Lagonda Global Holdings (AML) 65.05p -7.14%
Mediclinic International (MDC) 269.40p -6.91%
Micro Focus International (MCRO) 433.60p -6.55%