Shortly after the open and London’s FTSE-100 has dipped back below the 7,000 level, with a slew of interesting activity showing on the board.
Mining stocks are the big fallers in early trade in the wake of some broker downgrades being compounded by poor Chinese trade data, but we also have the headline-grabbing stand-off between Unilever and Tesco dragging both firms lower, too. If played correctly, this could be a much-needed PR victory for the supermarket giant, although a hard-nosed approach to suppliers hiking prices is going to need the support of consumers if it’s to work – and they don’t just jump ship to Sainsbury’s or Morrisons.
Centrica is the only FTSE-100 stock going ex-div this morning, but a relatively modest payout here means the downside has been limited. Utility and infrastructure plays are gravitating towards the top of the market in a nod to the risk-off mentality that is emerging right now. That big shortfall in Chinese exports for September pushed Beijing’s trade surplus for the month down by around 20% so this is certainly rattling confidence in the global economy and with little fresh economic data on the agenda today – aside perhaps from the oil inventories this afternoon –in the absence if another shot in the arm from GBP weakness, reversing the sell-off seems a stretch.
