London stocks had extended losses by midday on Monday following disappointing Chinese data, as the battle for inhaler maker Vectura intensified.
The FTSE 100 was down 0.4% at 7,092.99.
CMC Markets analyst Michael Hewson said: “While we’ve seen a degree of optimism return to the US labour market and the US economy, concerns are rising over the Chinese economy which has been showing some worrying signs of weakness in recent weeks, amidst reports of increasing outbreaks of Delta variant cases which are reportedly prompting lockdowns across various parts of the country.
“The various outbreaks across Asia, which have been accelerating in recent weeks also appear to be starting to bleed into some of the recent economic data, with the latest July trade numbers at the weekend showing export growth of 19.3%, the lowest levels this year, and also below expectations.
“Imports were also weaker than expected, rising 28.1%, down from a 36.7% rise in June, as demand for iron ore, crude oil and steel slowed, while recent floods have also disrupted economic activity.
“On any other scale these numbers would be very good indeed, taking into account residual base effects from last year, as well various port disruptions due to labour shortages and Covid disruption, there is a concern that these numbers could well weaken further.”
In equity markets, Hargreaves Lansdown slumped as the investment platform posted a dip in full-year pre-tax profit, but said net new business inflows and assets under administration rose as demand for its services – particularly online – grew. Investors were likely focusing on the 8% decline in the total dividend and chief executive Chris Hill’s warning that trading levels are expected to moderate.
On the upside, SSE was the top gainer on the FTSE 100 following reports over the weekend that activist investor Elliott Management has built a stake in the company, fuelling speculation that it could be broken up or taken over. Severn Trent and United Utilities also advanced.
Vectura rallied after saying it was withdrawing its intention to recommend the sweetened offer made by private equity firm Carlyle at the end of last week following an increased offer from Philip Morris, as the UK Takeover Panel said the process would be put to auction if both suitors don’t make final bids by Tuesday.
Elsewhere, Deliveroo shares surged after German rival Delivery Hero took a 5.09% stake in the company. Delivery Hero now owns just under 87.4m Deliveroo shares.
Market Movers
FTSE 100 (UKX) 7,092.99 -0.42%
FTSE 250 (MCX) 23,410.98 -0.19%
techMARK (TASX) 4,616.20 -0.04%
FTSE 100 – Risers
SSE (SSE) 1,600.50p 3.53%
Severn Trent (SVT) 2,804.00p 1.23%
United Utilities Group (UU.) 1,066.50p 1.04%
Imperial Brands (IMB) 1,582.00p 0.86%
Reckitt Benckiser Group (RKT) 5,655.00p 0.62%
Hikma Pharmaceuticals (HIK) 2,470.00p 0.61%
British American Tobacco (BATS) 2,664.50p 0.57%
GlaxoSmithKline (GSK) 1,444.00p 0.53%
Evraz (EVR) 616.60p 0.49%
Sainsbury (J) (SBRY) 290.20p 0.48%
FTSE 100 – Fallers
Hargreaves Lansdown (HL.) 1,457.00p -11.19%
Weir Group (WEIR) 1,637.50p -2.88%
International Consolidated Airlines Group SA (CDI) (IAG) 169.34p -2.36%
Smiths Group (SMIN) 1,433.00p -2.32%
Persimmon (PSN) 2,850.00p -2.23%
BP (BP.) 300.65p -2.21%
Entain (ENT) 1,886.50p -2.20%
Barratt Developments (BDEV) 705.40p -2.16%
Berkeley Group Holdings (The) (BKG) 4,847.00p -1.92%
ITV (ITV) 115.00p -1.84%
FTSE 250 – Risers
Capita (CPI) 42.35p 5.72%
Vectura Group (VEC) 172.00p 4.88%
Clarkson (CKN) 3,410.00p 4.44%
CLS Holdings (CLI) 262.00p 2.34%
Kainos Group (KNOS) 1,792.00p 2.28%
Frasers Group (FRAS) 600.00p 2.21%
Pantheon International (PIN) 2,740.00p 1.86%
Synthomer (SYNT) 537.50p 1.80%
Playtech (PTEC) 380.80p 1.71%
IP Group (IPO) 125.20p 1.62%
FTSE 250 – Fallers
Energean (ENOG) 649.50p -5.39%
Pagegroup (PAGE) 592.50p -4.90%
Cairn Energy (CNE) 161.30p -4.10%
Cineworld Group (CINE) 63.12p -3.46%
Tullow Oil (TLW) 46.00p -2.99%
easyJet (EZJ) 827.60p -2.68%
Harbour Energy (HBR) 341.20p -2.37%
Petropavlovsk (POG) 20.00p -2.34%
Elementis (ELM) 146.20p -2.27%
Wood Group (John) (WG.) 221.70p -2.21%
