London midday: Weak macro data prompts sell-off

23rd Apr 2012 11:41

- Chinese, Eurozone PMIs show contraction- Eyes on political situation in France, Netherlands- Miners provide a drag on FootsieWeak data from both China and the Eurozone was weighing heavily on the FTSE 100 in morning trade on Monday, while political tensions in France and the Netherlands were also providing some concern.The HSBC preliminary flash purchasing managers' index for China rose from 48.3 to 49.1 in April but still remained under the crucial 50-point level, which shows that the industry is still contracting. Meanwhile, Eurozone preliminary manufacturing PMI reached a 34-month low of 46.0 points compared to the previous month's 47.7, according to Markit. The composite PMI fell to a five-month low of 47.4 in April, from 49.1 last month, well below the 49.3 forecast."Euro area 'flash' PMIs came in on the weak side in April and suggest the that ongoing deterioration of business sentiment is unlikely to revert soon. How deep this weakness will be will depend on how severe the euro area sovereign crisis remains and on the health of the global economy," said analyst Fabio Fois from Barclays Capital.In France, Socialist candidate Francois Hollande edged a narrow victory over Nicolas Sarkozy in the country's first-round presidential elections. This is the first time that a current President has not won the top spot in the first round of a re-election bid. Meanwhile, talks in the Netherlands collapsed after lawmakers failed to agree on budget cuts.Over the weekend, the G20 pledged to supply the International Monetary Fund (IMF) with $430bn "to help build confidence and prevent crises from spreading." This so-called "reinforced anti-crisis firewall" is meant to place the global recovery on firmer footing as the IMF can now set it sights on rekindling growth, restoring confidence and creating jobs. FTSE 100: Miners sold off after China dataWith the Chinese manufacturing sector still contracting, the miners were under heavy selling pressure this morning as metals prices weakened. Vedanta, Kazakhmys and Rio Tinto were heavy fallers.Insurer Prudential was friendless as rumours surfaced that the company is eyeing the insurance business of Thailand's Thanachart Bank, valued at about £310m. Brewing giant SABMiller was under the weather after announcing a raft of senior management changes as its Chairman, Meyer Kahn, retires after 46 years with the firm. In contrast, International Power was flat after announcing that it is to expand its jointly-owned Tihama power production sites in Saudi Arabia after winning a contract extension through to 2026 from oil company Saudi Aramco. FTSE 250: CWW soars after Vodafone offer Mobile phone networks operator Vodafone has launched an agreed bid for telecoms firm Cable and Wireless Worldwide (CWW). The board of CWW has given its support to a 38p a share cash offer from Vodafone. The Vodafone terms value CWW at around £1,044m. Shares jumped this morning, rebounding after last week's steep losses. ??"The offer from Vodafone announced today will enable shareholders to crystallise a value, in cash, that represents a significant premium to recent trading levels and avoid exposure to the risks inevitably presented by executing a medium-term improvement strategy," said John Barton, Chairman of CWW. ??Transport group Stagecoach fell despite saying that current trading remains good and it expects to at least maintain operating profit levels in the year to 30 April 2013. FTSE 100 - RisersBritish Sky Broadcasting Group (BSY) 683.50p +1.33%Vodafone Group (VOD) 172.75p +0.73%International Power (IPR) 417.30p 0.00%FTSE 100 - FallersOld Mutual (OML) 145.60p -14.21%International Consolidated Airlines Group SA (CDI) (IAG) 163.50p -4.83%Vedanta Resources (VED) 1,178.00p -4.77%Prudential (PRU) 733.00p -3.87%Kazakhmys (KAZ) 856.50p -3.71%Rio Tinto (RIO) 3,422.50p -3.51%IMI (IMI) 957.50p -3.48%Johnson Matthey (JMAT) 2,288.00p -3.46%Schroders (SDR) 1,409.00p -3.43%Barclays (BARC) 206.25p -3.42%FTSE 250 - RisersCable & Wireless Worldwide (CW.) 36.93p +15.41%Cable & Wireless Communications (CWC) 31.66p +1.18%Drax Group (DRX) 532.50p +1.14%Spirit Pub Company (SPRT) 56.25p +0.90%Ophir Energy (OPHR) 558.00p +0.90%William Hill (WMH) 280.80p +0.90%Domino's Pizza UK & IRL (DOM) 435.20p +0.74%COLT Group SA (COLT) 100.00p +0.50%Micro Focus International (MCRO) 464.70p +0.48%BlueCrest AllBlue Fund Ltd. GBP Shares (BABS) 162.00p +0.37%FTSE 250 - FallersBumi (BUMI) 502.50p -7.54%Essar Energy (ESSR) 128.50p -6.55%Kenmare Resources (KMR) 52.00p -5.28%Afren (AFR) 142.40p -5.07%International Personal Finance (IPF) 241.50p -4.73%Supergroup (SGP) 336.00p -4.49%Homeserve (HSV) 233.70p -3.95%Henderson Group (HGG) 119.50p -3.94%Rotork (ROR) 2,133.00p -3.92%Aquarius Platinum Ltd. (AQP) 138.00p -3.83%BC