UK stocks are weighed down by disappointing economic data from China announced over the weekend, which missed expectations. China’s industrial output rose 6% year-on-year in April, compared with 6.8% growth a month earlier, the National Bureau of Statistics said on Saturday. Analysts had predicted a 6.6% increase.
The net effect on UK markets sees the FTSE 100 index slide around 20 points, or 0.3%, to 6,119 in early trade on Monday, although midcaps buck the downward trend, the FTSE 250 nudging marginally higher at 16,661.
Oil prices jump after Goldman Sachs said the market had finished almost two years of oversupply and moved to a deficit following global production disruptions. Brent crude rose 2.08% to $48.85 per barrel and West Texas Intermediate increased 1.8% to $47.10 per barrel early on Monday.
Among smaller companies, chemicals company Carclo (CAR) falls 4% to 149.5p as it reveals plans to discontinue its investment in Carclo Diagnostics Solutions, currently around £1.5 million-plus a year after a strategic review. The carrying value, about £4.9 million, would be fully impaired in the financial statements for the year ended 31 March.
Housebuilder Crest Nicholson (CRST) rises 2.7% to 539.25p as it shows trading continues to be good and that it remains on track to reach its stated target of £1 billion of full year revenues and to continue growing the number of new homes it delivers. Unit completions of 1,206 were up 7% on the year.
Auto data reports play Arria NLG (NLG:AIM) is up close on 2% to 21.88p after it is granted a patent on its Method, Apparatus, and Computer Program Product for User-Directed Reporting from the US Patent and Trademark Office, its eighth patent to date.