London midday: FTSE 100 declines on surprise construction slowdown

4th Aug 2015 12:21

(ShareCast News) - The FTSE 100 continued its slide as investors weighed earnings, mixed news from Greece and a worse-than-expected report on the UK construction sector.The Markit/CIPS purchasing mangers' index on UK construction activity fell to 57.1 in July from 58.1 a month earlier, missing forecasts for a reading of 58.5. A reading above 50 indicates expansion while a number below that signals a contraction."July's growth slowdown is the first for three months and perhaps a sign that the post-election impact on construction confidence has started to diminish," said Markit's senior economist, Tim Moore.Earlier, a report from Nationwide showed UK house prices rose 3.5% year-on-year in July, as expected, accelerating from the previous month's 3.3% gain. Compared to a month ago, prices increased 0.4% in July, in line with forecasts, following a 0.2% drop in June."We currently expect house prices to rise by 6% in 2015 and then by a further 5% in 2016," said Howard Archer, chief economist at IHS Global Insight.However, Archer said housing market activity and prices are expected to be constrained by more stretched house prices to earnings ratios, tighter checking of prospective mortgage borrowers by lenders and the likelihood that interest rates will soon start rising gradually.Meanwhile, Greece continued to weigh on sentiment as the overall Athens General Index dropped for a second day after falling as much as 23% on Monday on concerns over the country's bailout talks and economy.In good news for the debt-ridden nation, government spokeswoman Olga Gerovasili said Athens expects to conclude the bailout deal with creditors by 18 August. The drafting of the accord begins on Wednesday, she told the Skai TV station.Stateside, a report on US factory orders at 1500 BST is expected to show a 1.7% increase in June after a 1% drop a month earlier. The Federal Reserve is looking for signs of a sustained improvement in the economy before it hikes interest rates for the first time in nine years.Company newsTravis Perkins was a top faller as traders shrugged off robust first-half results in the face of continued wobbles in the plumbing and heating market.Royal Bank of Scotland tumbled as the government sold a 5.4% stake in the part-owned state bank.Standard Life slipped after the insurer reported a drop in first half revenue, blaming market volatility.Meggitt gained after posting a 6% rise in underlying first-half pre-tax profit as stronger-than-expected military revenue offset challenging conditions in the energy market, and announced two contract wins.Smiths Group advanced after it emerged that US activist hedge fund ValueAct is a shareholder. According to the Financial Times, ValueAct's stake in Smiths is below the 5% required for disclosure to the London Stock Exchange.ARM Holdings edged lower after announcing a reshuffling of the board with Stephen Pusey and Lawton Fitt appointed as independent non-executive directors.Direct Line Insurance Group climbed as it reported a rise in pre-tax profit for the first half and raised its interim dividend.Market MoverstechMARK 3,203.82 +0.01%FTSE 100 6,674.56 -0.21%FTSE 250 17,673.51 +0.02%FTSE 100 - RisersSmiths Group (SMIN) 1,214.00p +5.66%Meggitt (MGGT) 488.70p +5.28%Rio Tinto (RIO) 2,477.00p +1.83%Anglo American (AAL) 792.20p +1.69%BHP Billiton (BLT) 1,156.00p +1.67%Randgold Resources Ltd. (RRS) 3,836.00p +1.32%Direct Line Insurance Group (DLG) 370.80p +1.31%Antofagasta (ANTO) 575.00p +1.23%Centrica (CNA) 268.70p +1.21%Babcock International Group (BAB) 1,008.00p +1.20%FTSE 100 - FallersTravis Perkins (TPK) 2,177.00p -3.67%Standard Life (SL.) 441.10p -2.95%Coca-Cola HBC AG (CDI) (CCH) 1,306.00p -2.83%Barclays (BARC) 281.30p -2.39%Standard Chartered (STAN) 955.20p -1.94%Rolls-Royce Holdings (RR.) 825.00p -1.90%ARM Holdings (ARM) 975.00p -1.86%3i Group (III) 540.00p -1.73%International Consolidated Airlines Group SA (CDI) (IAG) 542.50p -1.54%Lloyds Banking Group (LLOY) 82.16p -1.10%FTSE 250 - RisersVedanta Resources (VED) 401.60p +5.02%Rotork (ROR) 222.30p +2.92%Man Group (EMG) 170.80p +2.46%Redefine International (RDI) 51.85p +2.07%AO World (AO.) 129.60p +1.97%Wizz Air Holdings (WIZZ) 1,680.00p +1.82%UDG Healthcare Public Limited Company (UDG) 509.50p +1.80%Saga (SAGA) 210.50p +1.69%Renishaw (RSW) 2,135.00p +1.67%Drax Group (DRX) 306.80p +1.62%FTSE 250 - FallersLonmin (LMI) 45.70p -6.73%Euromoney Institutional Investor (ERM) 1,041.00p -3.43%Bank of Georgia Holdings (BGEO) 1,929.00p -3.41%Foxtons Group (FOXT) 245.30p -2.66%Just Eat (JE.) 426.30p -2.63%SIG (SHI) 205.20p -2.05%Diploma (DPLM) 717.00p -1.65%Ladbrokes (LAD) 108.90p -1.63%Genus (GNS) 1,415.00p -1.60%Serco Group (SRP) 124.90p -1.58%FTSE TechMARK - RisersXP Power Ltd. (DI) (XPP) 1,697.00p +1.77%BATM Advanced Communications Ltd. (BVC) 17.00p +1.49%Dialight (DIA) 551.00p +1.10%Consort Medical (CSRT) 926.00p +0.98%Sepura (SEPU) 156.50p +0.97%KCOM Group (KCOM) 95.50p +0.79%E2V Technologies (E2V) 225.25p +0.33%Anite (AIE) 125.75p +0.20%IShares Euro Gov Bond 7-10YR UCITS ETF (IEGM) € 201.72 +0.13%FTSE TechMARK - FallersSDL (SDL) 386.00p -3.62%Torotrak (TRK) 6.75p -2.03%Oxford Biomedica (OXB) 8.89p -0.78%Innovation Group (TIG) 32.50p -0.76%Oxford Instruments (OXIG) 917.00p -0.33%Spirent Communications (SPT) 94.25p -0.26%NCC Group (NCC) 233.50p -0.21%