London close: Stocks mixed on China data, trade talks
By Josh White
Date: Monday 09 Jun 2025
(Sharecast News) - London's equity markets closed in mixed territory on Monday as investors weighed fresh economic data from China and looked ahead to the outcome of trade discussions between the US and China taking place in London.
The FTSE 100 index dipped 0.06% to finish at 8,832.28, while the FTSE 250 climbed 0.61% to 21,285.91.
In currency markets, sterling edged up 0.17% on the dollar to last trade at $1.3551, while it was little changed against the euro at €1.1870.
"Buoyed by Friday's strong payroll report, markets were able to shrug off the weekend's China trade data," said IG chief market analyst Chris Beauchamp.
"Now investors wait to see what comes of the latest talks between the US and China.
"Some kind of accord would be welcome, but they might even be happy if the two sides merely agree to keep talking."
Beauchamp said much was resting on this week's US inflation data.
"Gold has been the go-to for many investors in these uncertain times, but the metal's gains mean that the search is on for alternatives.
"Platinum has been one of the beneficiaries of the hunt for other stores of value, and as demand in China picks up there are hopes that this metal can replicate some of gold's impressive run."
China data suggests continued weakness in world's second economy
There were no significant economic data releases in the UK on Monday, but data from China pointed to continued weakness in both domestic demand and external trade, as consumer and producer prices remained under pressure and export growth slowed significantly.
The consumer price index fell 0.1% year-on-year in May, marking the fourth consecutive month of deflation.
While the figure came in slightly above market expectations of a 0.2% decline, the data underscored persistent softness in the economy.
Food prices declined by 0.4%, and transport costs dropped 4.3%, widening from April's 3.9% fall.
Those declines offset modest increases in housing, clothing, healthcare, and education costs.
Core inflation, which excludes food and energy, rose to 0.6%, its highest level since January.
Producer prices fell 3.3% year-on-year, widening from a 2.7% drop in April.
That marked the steepest decline in factory-gate prices since July 2023, signalling deepening deflationary pressures at the industrial level.
On the trade front, exports rose 4.8% year-on-year in May, slowing sharply from 8.1% growth in April.
Shipments to the US plunged 34.5%, the steepest decline in more than five years, amid ongoing trade tensions.
Imports fell 3.4% on the year, compared with a 0.2% drop the previous month, reflecting subdued domestic demand.
"Chinese equities opened the week on a mildly positive note, supported by hopes that weak macro data will prompt further stimulus from the People's Bank of China and the government, and that the second round of US-China trade talks - today in London - could lead to further progress," said Swissquote Bank senior analyst Ipek Ozkardeskaya.
Spectris surges on takeover interest, WPP falls as CEO announces departure
On London's equity markets, Spectris surged 63.64% after confirming it had received a takeover approach from private equity firm Advent International.
The proposed offer, valued at 3,763p per share, included 3,735p in cash and a potential 28p interim dividend.
Spectris said it would be minded to recommend the offer if a firm bid was made.
Elsewhere, Alphawave IP Group jumped 22.18% after agreeing to a $2.4bn acquisition by US chipmaker Qualcomm.
M&G gained 3.04% following an upgrade to 'buy' from UBS, which cited improved fundamentals and attractive valuation.
On the downside, WPP fell 2.76% after announcing the upcoming retirement of long-serving chief executive Mark Read, who would step down at the end of the year.
The company said a search for his successor was underway.
"The fact WPP's share price had more than halved over the past three years meant Mark Read's days were always numbered as CEO," said Russ Mould, investment director at AJ Bell.
"Shareholders can be patient, but there reaches a point where they can wait no longer and something has to change in order to revive the share price.
"The share price falling further on Read's departure news is a sign that investors are all too aware of the problems at hand."
Dunelm dropped 3.86% after RBC Capital Markets downgraded the homeware retailer to 'sector perform' from 'outperform'.
Trustpilot lost 5.75% as Panmure Liberum initiated coverage with a 'sell' rating, highlighting execution risks amid ongoing business transformation.
Aviva also declined, down 1.4% after KBW lowered its rating to 'market perform'.
Outside the FTSE 350, Revolution Beauty climbed 10.09% after confirming takeover interest from Frasers Group, though it cautioned that discussions were still at a preliminary stage.
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 8,832.28 -0.06%
FTSE 250 (MCX) 21,285.91 0.61%
techMARK (TASX) 5,067.27 2.53%
FTSE 100 - Risers
Flutter Entertainment (DI) (FLTR) 19,300.00p 4.69%
Melrose Industries (MRO) 484.60p 3.59%
Spirax Group (SPX) 5,940.00p 3.30%
M&G (MNG) 251.20p 3.04%
JD Sports Fashion (JD.) 82.60p 2.53%
Fresnillo (FRES) 1,374.00p 2.38%
IMI (IMI) 2,028.00p 2.27%
Diageo (DGE) 1,973.50p 2.10%
Taylor Wimpey (TW.) 116.35p 1.88%
International Consolidated Airlines Group SA (CDI) (IAG) 337.80p 1.84%
FTSE 100 - Fallers
WPP (WPP) 543.40p -2.76%
Hiscox Limited (DI) (HSX) 1,318.00p -2.44%
Aviva (AV.) 615.00p -1.88%
Marks & Spencer Group (MKS) 359.80p -1.88%
Haleon (HLN) 397.80p -1.83%
Tesco (TSCO) 384.60p -1.54%
Smith & Nephew (SN.) 1,107.50p -1.51%
London Stock Exchange Group (LSEG) 11,220.00p -1.49%
Relx plc (REL) 3,921.00p -1.36%
BT Group (BT.A) 175.95p -1.15%
FTSE 250 - Risers
Spectris (SXS) 3,264.00p 60.16%
Renishaw (RSW) 2,785.00p 5.89%
Mitie Group (MTO) 143.60p 5.43%
Oxford Instruments (OXIG) 1,908.00p 5.43%
Ferrexpo (FXPO) 49.65p 5.19%
IP Group (IPO) 47.85p 3.68%
Close Brothers Group (CBG) 335.00p 3.20%
RS Group (RS1) 587.00p 3.16%
Just Group (JUST) 152.20p 3.12%
Oxford Nanopore Technologies (ONT) 123.60p 3.00%
FTSE 250 - Fallers
W.A.G Payment Solutions (WPS) 74.20p -7.02%
Mobico Group (MCG) 27.48p -6.40%
AO World (AO.) 96.70p -5.83%
Trustpilot Group (TRST) 223.00p -5.75%
Dr. Martens (DOCS) 77.45p -5.49%
Trainline (TRN) 267.80p -4.01%
B&M European Value Retail S.A. (DI) (BME) 277.00p -3.99%
Dunelm Group (DNLM) 1,147.00p -3.86%
Wizz Air Holdings (WIZZ) 1,136.00p -3.24%
THG (THG) 23.00p -2.55%
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