London open: Stocks fall as China growth slows; UK retail sales in focus
At 0840 BST, the FTSE 100 was down 0.4% at 8,350.56.
Data released earlier by the National Bureau of Statistics showed that China’s GDP grew 4.6% in the third quarter, down from 4.7% growth in the second quarter, but above economists’ expectations for growth of 4.5%.
Richard Hunter, head of markets at Interactive Investor, said: "Quite apart from being shy of the official 5% target, the pockets of weakness as evidenced by a flagging property sector, high youth unemployment and low consumer confidence are all areas which need to be addressed."
On home shores, data from the Office for National Statistics showed that retail sales ticked higher in September, beating expectations, as consumers splashed out on technology.
Month-on-month sales volumes rose 0.3%. Growth was slower than the 1% improvement seen in August, but was comfortably ahead of forecasts for a 0.3% decline. Volumes were also at their highest index levels since July 2022.
Year-on-year, sales jumped 3.9%, the largest annual rise February 2022.
The best performing sector was computer and telecommunications, which helped partially offset a 2.4% decrease in supermarkets. Other non-foods, which includes tech, spiked 5.5%.
Cooler weather also helped support clothing and footwear sales.
Kris Hamer, director of insight at the British Retail Consortium, said: "Autumn led people to upgrade their wardrobe, as well as the last minute student dash for new computers, as the new academic year began.
"Big ticket items, such as furniture and other household goods, continued to take a hit from some consumers, such as those saving for Christmas or preferring to spend on experiences."
In equity markets, housebuilders were on the back foot, with Taylor Wimpey, Barratt Developments, Persimmon and Bellway all down. Richard Hunter said the stocks were "under some pressure as Budget uncertainty continues to unsettle the outlook despite new government pledges to revive the sector".
Media group Future tumbled as it said that chief executive Jon Steinberg plans to step down from the board later next year to relocate back to the US with his family. Steinberg’s notice period is 12 months and the board will now launch a search for his successor.
Bunzl was in the red after a downgrade to ‘neutral’ from ‘buy’ at Citi, which said the shares are now trading in line with long run valuation multiples.
On the upside, heavily-weighted miners rallied, with Antofagasta, Anglo American, Glencore and Rio Tinto among the top gainers on the FTSE 100.
Market Movers
FTSE 100 (UKX) 8,350.56 -0.41%
FTSE 250 (MCX) 21,058.37 -0.20%
techMARK (TASX) 4,807.66 -0.14%
FTSE 100 - Risers
Antofagasta (ANTO) 1,849.00p 2.58%
Prudential (PRU) 670.80p 2.44%
Anglo American (AAL) 2,385.50p 2.05%
Glencore (GLEN) 410.65p 1.85%
Rio Tinto (RIO) 5,018.00p 1.46%
Flutter Entertainment (DI) (FLTR) 17,970.00p 1.04%
BP (BP.) 403.45p 0.86%
Entain (ENT) 735.60p 0.46%
Fresnillo (FRES) 687.00p 0.37%
Smurfit Westrock (DI) (SWR) 3,351.00p 0.33%
FTSE 100 - Fallers
Taylor Wimpey (TW.) 163.45p -1.57%
British American Tobacco (BATS) 2,686.00p -1.54%
Barratt Redrow (BTRW) 486.50p -1.54%
Rolls-Royce Holdings (RR.) 560.40p -1.51%
Persimmon (PSN) 1,663.50p -1.48%
Compass Group (CPG) 2,491.00p -1.42%
Unilever (ULVR) 4,790.00p -1.38%
NATWEST GROUP (NWG) 357.80p -1.38%
Next (NXT) 10,315.00p -1.34%
Scottish Mortgage Inv Trust (SMT) 851.60p -1.23%
FTSE 250 - Risers
SDCL Energy Efficiency Income Trust (SEIT) 63.10p 4.13%
Burberry Group (BRBY) 714.80p 3.96%
IP Group (IPO) 48.80p 2.95%
AO World (AO.) 112.00p 2.75%
Indivior (INDV) 676.00p 2.66%
Fidelity China Special Situations (FCSS) 213.00p 2.65%
RHI Magnesita N.V. (DI) (RHIM) 3,505.00p 2.19%
Aston Martin Lagonda Global Holdings (AML) 108.50p 1.69%
Raspberry PI Holdings (RPI) 366.80p 1.33%
Currys (CURY) 89.95p 1.30%
FTSE 250 - Fallers
Future (FUTR) 891.50p -9.40%
Petershill Partners (PHLL) 211.00p -4.52%
Grafton Group Ut (CDI) (GFTU) 1,037.40p -2.06%
Marshalls (MSLH) 349.50p -1.96%
Bellway (BWY) 3,272.00p -1.92%
CMC Markets (CMCX) 332.00p -1.78%
Clarkson (CKN) 3,500.00p -1.69%
Chemring Group (CHG) 377.00p -1.57%
Drax Group (DRX) 654.00p -1.43%
Sirius Real Estate Ltd. (SRE) 94.60p -1.36%