FTSE 100 opens lower amid concerns over Chinese economic growth

The FTSE 100 index started the trading day on a negative note, slipping by 21.77 points or 0.3% to reach 7,620.95. Investor sentiment was dampened by mounting apprehensions about the economic growth of China, impacting global equities.

The FTSE 250 index also experienced a decline, shedding 72.37 points or 0.4% to settle at 18,958.52. Similarly, the AIM All-Share index registered a modest drop of 1.33 points or 0.2% to reach 791.26.

Among the notable losers were London’s mining stocks, which suffered due to a weaker demand outlook from China. Antofagasta and Anglo American, in particular, saw a decline of 1.9% in their share prices.

In the UK housing market, house prices experienced a slight decline this month, marking the first June drop since 2017, according to a tracker provided by Rightmove. Consequently, Housebuilder Taylor Wimpey witnessed a 1.0% drop in its share price. Housebuilder Persimmon, however, managed to buck the trend with a 0.6% increase.

Contrasting the downtrend, Entain emerged as one of the top performers, witnessing a rise of 1.4% in its share price. Redburn, a prominent investment research firm, upgraded its rating on the gambling company’s stock to ‘buy,’ bolstering investor confidence.

Coca-Cola HBC faced a setback as its shares tumbled by 2.7%. The company announced its plans to acquire Brown-Forman Finland, the owner of the renowned Finlandia vodka brand, from Brown-Forman’s Dutch subsidiary. The acquisition, valued at $220 million, is expected to be finalised in the second half of the year, pending regulatory approvals.

Meanwhile, IT services provider Kainos Group experienced a decline of 2.3% following the announcement of a leadership transition. Brendan Mooney, the company’s CEO for the past 22 years, revealed that he will step down by the end of September. Russell Sloan, the Digital Services Director, has been named as Mooney’s successor.

In contrast to the overall downward trend, Avacta Group witnessed a notable surge, with its shares rising by 8.3%. The company addressed recent media reports suggesting an imminent fundraising by denying any concrete plans. It clarified that it routinely evaluates various funding opportunities, both dilutive and non-dilutive, to ensure the company’s financial stability and the best interests of its stakeholders.