London open: Cautious start after Chinese GDP data

13th Apr 2012 08:37

- Chinese GDP disappoints- Miners shrug off data- Sage downgraded by JefferiesLondon's blue chip index started flat in early trading on Friday as some worse-than-expected economic data from China weighed on sentiment.Gross domestic product (GDP) growth in China slowed to an annual rate of 8.1% in the first quarter of 2012, according to the National Bureau of Statistics, down from the 8.9% expansion seen in the fourth quarter of last year. This was significantly lower than the +8.4% consensus estimate and consistent with weak monthly data, said analyst Marcus Widen from Barclays Capital. "Better-than-expected March IP numbers nourished sentiment and may suggest that the ongoing policy easing has started to affect the economy," he said.Investors will still be digesting comments from the President of the New York Federal Reserve, William Dudley, who said yesterday that US policymakers would consider additional monetary stimulus if the outlook deteriorates. He said that the economy is not yet strong enough to make a dent in the jobless numbers.FTSE 100: Miners gain, Sage falls after downgradeThe miners were making gains despite weaker-than-expected Chinese growth with Rio Tinto, Kazakhyms, BHP Billiton, Anglo American and Evraz among the best performers. One stock that did react to the data though was luxury brand Burberry which was out of favour with China being one of its key high-growth markets.Xstrata and Glencore were standout performers even though they admitted this morning that their planned tie-up may take a little longer than expected, as they continue discussions with regulatory authorities which require anti-trust filings to be submitted.Oil giant Royal Dutch Shell was a high riser following Thursday's fall on the back of an oil sheen spotted near its operations in the Gulf of Mexico. The company released an statement late yesterday saying that following a thorough investigation, it could confirm that the oil did not come from its own platforms.Business software group Sage was the heavy faller early on after Jefferies downgraded its rating on the stock from buy to hold. "In the absence of any pronounced end-market recovery, we are tempering our group growth assumptions for FY12E, with a modestly improved EBIT margin expectation," the broker said. FTSE 250: Avocet falls after Inata updateBurkina Faso-focused gold miner Avocet Mining says it may have to construct a new process plant at its Inata project, rather than just extend the existing plant, in order to provide more processing flexibility. Shares fell nearly 3%.Shareholders of oil and gas group Premier Oil didn't seem too bothered by news that the company is to plug and abandon the Biawak Besar-1x exploration well in Indonesia.On the Alternative Investment Market (AIM), business communications services group Daisy was a heavy faller after announcing that its Chief Operating Officer Gareth Kirkwood has resigned with immediate effect.FTSE 100 - RisersRoyal Dutch Shell 'A' (RDSA) 2,150.00p +1.18%Royal Dutch Shell 'B' (RDSB) 2,197.50p +1.08%Xstrata (XTA) 1,117.00p +1.04%Evraz (EVR) 361.00p +1.01%Glencore International (GLEN) 408.25p +0.83%Antofagasta (ANTO) 1,149.00p +0.79%Rio Tinto (RIO) 3,511.00p +0.69%ICAP (IAP) 378.70p +0.66%GKN (GKN) 204.50p +0.59%BHP Billiton (BLT) 1,916.00p +0.50%FTSE 100 - FallersSage Group (SGE) 289.30p -2.10%Carnival (CCL) 1,930.00p -1.58%British Sky Broadcasting Group (BSY) 654.00p -1.21%Royal Bank of Scotland Group (RBS) 25.66p -1.16%Capital Shopping Centres Group (CSCG) 320.50p -1.02%GlaxoSmithKline (GSK) 1,406.00p -0.99%Ashmore Group (ASHM) 385.60p -0.98%CRH (CRH) 1,249.00p -0.95%Marks & Spencer Group (MKS) 371.80p -0.93%Serco Group (SRP) 542.00p -0.91%FTSE 250 - RisersAfrican Barrick Gold (ABG) 361.40p +2.90%Ruspetro (RPO) 199.50p +2.57%Paragon Group Of Companies (PAG) 182.40p +2.41%Petra Diamonds Ltd.(DI) (PDL) 164.40p +1.92%Diploma (DPLM) 433.20p +1.79%Cable & Wireless Worldwide (CW.) 36.09p +1.78%CSR (CSR) 219.40p +1.72%BH Global Ltd. USD Shares (BHGU) 11.79 +1.55%Rathbone Brothers (RAT) 1,283.00p +1.50%Carpetright (CPR) 627.00p +1.46%FTSE 250 - FallersAvocet Mining (AVM) 169.70p -2.19%Logica (LOG) 82.10p -1.79%Perform Group (PER) 295.40p -1.57%Halfords Group (HFD) 296.10p -1.50%Spirit Pub Company (SPRT) 53.50p -1.38%Essar Energy (ESSR) 157.10p -1.32%KCOM Group (KCOM) 70.80p -1.32%Tullett Prebon (TLPR) 348.00p -1.19%Wetherspoon (J.D.) (JDW) 403.40p -1.15%JD Sports Fashion (JD.) 782.00p -1.14%BC