FTSE shares mixed as China woes temper enthusiasm

The FTSE 100 slipped at the open on Monday while the FTSE 250 edged up, as worries around the Chinese economy and ongoing property sector turmoil there weighed on sentiment. Mining shares struggled in particular as China is a key export market.

The blue-chip FTSE 100 index fell 9.67 points, or 0.1%, to 7,478.53 in early trade. The midcap FTSE 250 meanwhile added 44.70 points, up 0.2%, to hit 18,502.80. On AIM, the small-cap index gained 1.17 points, a 0.2% rise, to reach 718.07.

Shares of major miners exposed to China traded lower to start the week. Rio Tinto fell 0.4% while Glencore dropped 0.2%. Diversified mining giant BHP slid 1.0% in the mining sector gloom.

Adding to downbeat sentiment, Chinese police over the weekend said they opened a probe into troubled financial group Zhongzhi Enterprise after it declared itself insolvent last week. During the country’s real estate boom years, Zhongzhi helped finance numerous property developments.

Oil majors also declined, with Shell and BP each falling 1.1% as crude prices struggled. Ahead of a key OPEC+ meeting later this week, Brent oil traded at $79.91 per barrel.

On the upside, Rightmove surged 6.5% as the property website said its financial performance continues tracking ahead of expectations. It now sees 2023 average revenue per advertiser growing between £112 and £116, up from a prior £103-£105 guidance range.

Meanwhile, warehouse investor abrdn European Logistics jumped 10% on announcing a strategic review that could include selling the company.