31st May 2019 08:58
LONDON (Alliance News) - Stocks in London were broadly lower, as the FTSE 100 was weighed down by miners reacting to disappointing Chinese economic data and heightened trade tensions, with the US adding Mexico to its hit list.The FTSE 100 was 59.83 points, or 0.8% lower, at 7,158.36 early Friday. The FTSE 250 was 168.77 points, or 0.9% lower, at 18,942.74. The AIM All-Share was down 0.2% at 959.81.The Cboe UK 100 index was down 0.9% at 12,136.42. The Cboe UK 250 was 0.8% lower at 17,046.48, but the Cboe UK Small Companies was marginally higher at 11,811.91."The risk-off mood stems from Trump imposing yet more tariffs, this time on Mexico, rather than China, although its dispute with the latter remains just as newsworthy and market-moving," said Michael van Dulken, head of Research at Accendo Markets."Disappointing China PMI manufacturing hasn't helped sentiment either, contracting more than expected, denting sentiment towards miners in Australia overnight," Dulken added.US President Donald Trump announced a 5% tariff on all goods imported from Mexico to pressure the country into stopping illegal immigrants from entering the US.In a statement, Trump said Mexico's "passive cooperation" with the flow of illegal immigration was an "emergency and extraordinary threat to the national security and economy of the US".The tariff will be imposed on June 10 and be raised to 10% on July 1 "if the crisis persists", Trump added.The tariff will then be gradually increased "if Mexico still has not taken action to dramatically reduce or eliminate the number of illegal aliens crossing into the the US".In Asia on Friday, the Japanese Nikkei 225 index ended down 1.6%. In China, the Shanghai Composite closed 0.3% lower, while the Hang Seng index in Hong Kong is down 0.7%.In China, the manufacturing sector fell into contraction in May, with the National Bureau of Statistics posting a purchasing managers' index score of 49.4. That was short of expectations for 49.9 and down from 50.1 in April. It also fell below the boom-or-bust line of 50 that separates expansion from contraction.The non-manufacturing PMI came in at 54.3 - unchanged from the previous month and in line with expectations - while the composite index had a score of 53.3, down fractionally from 53.4 a month earlier.On the London Stock Exchange, blue-chip miners languished in the red in early trade, as sentiment towards the sector was dented by the Chinese manufacturing report.Rio Tinto was down 2.3%, Antofagasta 3.1%, Anglo American 2.0% and BHP Group 1.3%.Housebuilders were lower as well. UK house prices in May were down 0.6% year-on-year, and 0.2% month-on-month, data from Nationwide revealed Friday morning.Taylor Wimpey was down 1.1%, Barratt Developments 0.8%, Berkeley Group 1.0%, and Persimmon 0.7%. Insurance firm Legal & General Group was down 0.8% after announcing the sale of its General Insurance Business to German insurance group Allianz for a base price of GBP242 million.The group's General Insurance business mainly sold household insurance to retail customers.L&G said there could be potential further payments over a three year period based on ongoing commercial arrangements.The deal is expected to be completed in the second half of 2019. L&G said the sale is expected to increase the company's solvency II ratio by about 2%, while proceeds from the sale will be reinvested into the group's core businesses.In the FTSE 250, Stobart Group was the second best performer early Friday, up 3.5%.Chief Executive Officer Warwick Brady purchased 50,000 shares in the aviation, energy, and civil engineering company at 125.9 pence each, for a total of GBP62,950. The stock was the top riser in the FTSE 250 on Thursday after Stobart - an aviation, energy, and civil engineering company - posted a pretax loss of GBP42.1 million in its recent financial year, swinging from a GBP109.3 million profit, but a 39% increase in revenue from continuing operations. Casino operator Rank Group was up 0.4%, as it confirmed it was in "advanced discussions" with AIM-listed Stride Gaming for an all-cash offer which values Stride's shares at 151 pence per share.The offer is at a 28% premium to Stride Gaming's closing price on Thursday, at 117.50 pence. Stride Gaming was trading 23% higher, with a market cap of GBP109.9 million.Both Rank and Stride stated that there was no certainty that any offer would be made.In the red, Wizz Air was the second worst performer Friday morning, down 4.9% after it posted strong annual results but warned of a "very challenging operating environment in its current financial year.The Central and Eastern Europe-focused airline posted revenue for the 12 months to March 31 of EUR2.32 billion, 20% higher from EUR1.93 billion the year before, with passenger numbers up 17% to 34.6 million. The firm's pretax profit increased 4.5% year-on-year to EUR300.2 million, with earnings before interest, taxes, depreciation, amortisation, and aircraft rentals was 8.9% higher at EUR718.5 million.Looking ahead, Wizz Air said for the year ending March 2020, capacity is expected to rise by 16% and a net profit of between EUR320 million and EUR350 million versus EUR292 million recorded in 2019.However despite a solid start, Wizz Air warned on a challenging operating environment due to no signs that air traffic control and airport infrastructure issues will improve "any time soon".Property investor Capital & Counties Properties was down 1.8%, after reporting a fall in the valuation of its interest in Earls Court Partnership.Capital & Counties said an independent valuation showed the implied value of the company's property interests in Earls Court Partnership is GBP412 million as at March 31, down 11% on a like-for-like basis from GBP461 million at the end of 2018. On a pro-forma basis, this reduces the company's EPRA net asset value as at December 31, 2018, of 326 pence by around 6p.In mainland Europe, the CAC 40 index in Paris and the DAX 30 in Frankfurt were down 1.2% and 1.5%, respectively.In Germany, retail sales rebounded in April from last year driven by the timing of Easter, data from Destatis showed. Retail sales rebounded at a faster-than-expected pace of 4% annually in April, reversing a 2% fall in March. Sales were forecast to grow moderately by 1.3%.The pound was quoted at USD1.2613 at the early Friday, compared to USD1.2606 at the close on Thursday . In the UK, consumer confidence rose in May with four measures increasing since April and one unchanged, data revealed on Friday.Data from market research firm GfK said its UK consumer confidence indicator read negative 10 in May, improving over the negative 13 recorded in April, March and February. In May of last year, the consumer confidence reading was negative 7.GfK Client Strategy Director Joe Staton said: "Despite a backdrop of Brexit-related change and complexity, and price rises for most household bills in April, consumers have managed a seasonal spring in their step with a three-point uptick in consumer confidence this month."Still to come in the economic calendar on Friday, Italy has GDP and inflation data at 0900 BST and 1000 BST respectively, and UK mortgage approvals numbers are at 0930 BST. In the afternoon there are Germany inflation readings at 1300 BST and US personal consumption expenditure figures at 1330 BST - the core reading is the Federal Reserve's preferred gauge of inflation.