London open: FTSE dips as Chinese factory data hits miners
By Michele Maatouk
Date: Tuesday 03 Jun 2025
(Sharecast News) - London stocks nudged lower in early trade on Tuesday, unable to cling on to opening gains as miners took a hit from disappointing Chinese data.
At 0905 BST, the FTSE 100 was down 0.1% at 8,766.56.
Heavily-weighted miners were the worst performers on the FTSE 100 after the release of weaker-than-expected Chinese manufacturing data, with Glencore, Antofagasta, Anglo American and Rio Tinto all down.
A survey released earlier showed that activity in China's manufacturing sector unexpectedly contracted in May. The Caixin/S&P Global manufacturing purchasing managers' index fell to 48.3 from 50.4 in April, missing expectations for a reading of 50.7. It marked the lowest level since September 2022.
A reading above 50.0 indicates growth, while a reading below signals contraction.
Wang Zhe, senior economist at Caixin Insight Group, said: "Overall, in May, manufacturing supply and demand declined, dragged by overseas demand. Employment continued to shrink, while prices remained weak. Logistics were delayed moderately, with manufacturing stocks remaining stable. Business optimism recovered slightly from April's low.
"Currently, unfavourable factors affecting China's economic development remain relatively prevalent. Uncertainty in the external trade environment has increased, adding to domestic economic headwinds
"Major macroeconomic indicators showed a marked weakening at the start of the second quarter. The downward pressure on the economy has significantly intensified compared to preceding periods."
Elsewhere, defence and aerospace company Chemring rose as it held annual guidance after a jump in interim profits and record order book amid global geopolitical tensions.
With countries looking to spend more on arms to counter threats from Russia and China, Chemring posted a 12% rise in underlying core earnings to £39.8m while its order book soared by a quarter to £1.3bn.
Kier rallied as the construction and property group lifted its operating profit margin target and said it continued to trade well and in line with the board's expectations in the period to 30 April.
Shares in British American Tobacco nudged lower even as it lifted its full-year revenue outlook, saying it now expects growth of 1% to 2%, up from previous guidance of 1%.
Water company Pennon also lost ground after saying it swung to a full-year underlying pre-tax loss of £35.1m from a profit of £16.8m a year earlier.
Market Movers
FTSE 100 (UKX) 8,766.56 -0.09%
FTSE 250 (MCX) 20,992.86 -0.17%
techMARK (TASX) 4,864.00 -0.03%
FTSE 100 - Risers
Centrica (CNA) 162.25p 3.25%
Kingfisher (KGF) 284.20p 1.72%
Airtel Africa (AAF) 180.40p 1.46%
Reckitt Benckiser Group (RKT) 5,048.00p 1.32%
Tesco (TSCO) 395.60p 1.28%
BAE Systems (BA.) 1,943.00p 1.22%
RELX FINANCE BV 3.375% GTD NTS 20/03/33 (BW73) 99.72p 1.10%
Melrose Industries (MRO) 465.60p 1.02%
The Sage Group (SGE) 1,230.50p 0.94%
National Grid (NG.) 1,053.00p 0.91%
FTSE 100 - Fallers
Antofagasta (ANTO) 1,758.00p -2.60%
Anglo American (AAL) 2,167.00p -2.39%
Pearson (PSON) 1,135.50p -2.32%
Glencore (GLEN) 278.25p -2.30%
Rio Tinto (RIO) 4,286.00p -2.11%
Persimmon (PSN) 1,297.00p -1.78%
Rentokil Initial (RTO) 357.50p -1.57%
Entain (ENT) 738.00p -1.52%
Flutter Entertainment (DI) (FLTR) 17,945.00p -1.46%
BT Group (BT.A) 176.80p -1.23%
FTSE 250 - Risers
Kier Group (KIE) 174.40p 3.56%
Harworth Group (HWG) 174.00p 3.26%
The European Smaller Companies Trust (ESCT) 196.00p 2.83%
Frasers Group (FRAS) 753.00p 2.59%
Chemring Group (CHG) 498.00p 2.36%
AO World (AO.) 105.40p 1.93%
Edinburgh Worldwide Inv Trust (EWI) 166.40p 1.84%
NB Private Equity Partners Ltd. (NBPE) 1,428.00p 1.82%
Petershill Partners (PHLL) 214.50p 1.65%
Foresight Solar Fund Limited (FSFL) 77.10p 1.58%
FTSE 250 - Fallers
Vistry Group (VTY) 602.40p -3.18%
Pennon Group (PNN) 492.80p -3.09%
Crest Nicholson Holdings (CRST) 175.20p -2.40%
Oxford Nanopore Technologies (ONT) 118.60p -2.39%
Genus (GNS) 1,984.00p -2.30%
Caledonia Investments (CLDN) 3,695.00p -1.86%
Coats Group (COA) 74.40p -1.72%
Me Group International (MEGP) 215.50p -1.60%
Morgan Sindall Group (MGNS) 3,790.00p -1.56%
Ibstock (IBST) 194.00p -1.42%
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