London open: Stocks flat after Chinese data

12th Mar 2012 08:34

- China in net deficit in January and February combined- Glencore eyeing up Viterra- Temenos drops out of the running for MisysThe Footsie opened flat on Monday after some disappointing economic data from China was weighing on financials and resource stocks.Chinese economic indicators out over the weekend seem have dampened sentiment on the markets today which will undoubtedly lead to some increasing their bets on the introduction of new policy easing measures in the Asian giant. Deficit figures revealed a shortfall of $31.5bn in February, the largest in 22 years, with growth in imports coming in at 39.6% while exports only gained by 18.4% from a year earlier. This compares with a surplus of $27.3bn in January, meaning that the nation was in a net deficit in the first two months.Meanwhile in Europe, Eurozone finance ministers are to meet in Brussels later today to finally sign off on the €130bn bailout for Greece. Despite last week's debt-swap cutting around €100bn off Greek debt, the country still hold the most debt in the Eurozone. Belgian newspaper De Morgen cited German Finance Minister Wolfgang Schaeuble as saying over the weekend: "nobody can now exclude that Greece at a single moment may need a third bailout." Nevertheless, he said that he has confidence that the measures being taken will "bring the country on the road to recovery."MAN DOWN AFTER DOWNGRADEMan Group was a heavy faller on the Footsie after HBSC downgraded the stock from overweight to neutral.Meanwhile, concerns over the Chinese economy were weighing on metals prices this morning, meaning that the miners were the fallers early on, including Vedanta Resources and Rio Tinto. Banking peers Royal Bank of Scotland and Lloyds were also out of favour. Commodities producer and marketer Glencore International is rumoured to considering a £3.5bn bid for Canadian grain firm Viterra. The Sunday Telegrpah said that the firm is attempting to bolster its agricultural business in North America.Household goods and home construction stocks were down an average of 0.56% early on despite the news that the government has launched a new scheme designed to help first time buyers onto the property ladder. NewBuy will see house builders pay 3.5% of the price of a house into an account held by the lending bank. The government will also guarantee 5.5% of the purchase price. The move is likely to help the construction industry, still struggling to get back on its feet after the 2008 financial crisis. Stewart Baseley, the Executive Chairman of the House Builders' Federation welcomed the news, saying that "the scheme will [...] provide a vital kick-start for house builders large and small who will be able to build the homes and create the jobs that the country desperately needs." Citigroup has downgraded its rating on sector peers Bovis Homes and Barratt Developments.FTSE 250: MISYS FALLS AFTER TEMENOS DROPS OUTThe merger discussions between financial software developers Misys and Temenos Group have been terminated, but Misys remains in talks with its other suitors regarding a potential takeover. Swiss firm Temenos, long thought of as a natural partner of Misys, has been in discussion with its UK peer since the beginning of February, but the two parties have evidently been unable to agree on a price. That leaves the field clear for the two rival private equity challengers, Vista Equity Partners and CVC Capital Partners, the latter working in conjunction with Misys's major shareholder, ValueAct Capital.Egypt-focused gold miner Centamin was a high riser on the FTSE 250 after having resumed work at its flagship Sukari Gold Mine following last week's labour unrest which brought operations to a standstill.Technology group Laird was in demand after completing the sale of its handset antennae business for £20m.Support services firm Carillion rose after being asked to deliver further construction work for the Thameslink programme, the cross-London rail network upgrade.Elsewhere, Game Group was a big mover, dropping nearly 80% after the future of the struggling computer video games retailer was thrown into doubt. The company confirmed that it has not been able to source new products from a number of suppliers while its talks with its bankers drag on. BCFTSE 100 - RisersAmec (AMEC) 1,167.00p +1.57%Carnival (CCL) 1,949.00p +1.56%International Consolidated Airlines Group SA (IAG) 163.10p +1.43%Kazakhmys (KAZ) 970.50p +1.30%Prudential (PRU) 729.50p +1.25%Hammerson (HMSO) 422.20p +1.10%Morrison (Wm) Supermarkets (MRW) 298.00p +1.09%Capital Shopping Centres Group (CSCG) 346.10p +1.08%Kingfisher (KGF) 285.00p +0.99%CRH (CRH) 1,342.00p +0.90%FTSE 100 - FallersMan Group (EMG) 137.40p -1.72%Vedanta Resources (VED) 1,401.00p -1.41%Royal Bank of Scotland Group (RBS) 25.87p -1.26%Rolls-Royce Holdings (RR.) 827.50p -0.90%International Power (IPR) 362.90p -0.85%G4S (GFS) 289.70p -0.82%Old Mutual (OML) 163.30p -0.79%Reckitt Benckiser Group (RB.) 3,524.00p -0.73%SSE (SSE) 1,293.00p -0.61%GKN (GKN) 211.20p -0.61%FTSE 250 - RisersCentamin (DI) (CEY) 85.65p +5.16%CSR (CSR) 258.40p +4.96%Homeserve (HSV) 226.70p +2.86%Computacenter (CCC) 376.50p +2.20%Exillon Energy (EXI) 203.60p +2.06%Laird (LRD) 197.50p +1.80%Stobart Group Ltd. (STOB) 131.20p +1.78%Carillion (CLLN) 310.00p +1.61%Redrow (RDW) 132.90p +1.45%Balfour Beatty (BBY) 291.00p +1.36%FTSE 250 - FallersCarpetright (CPR) 602.00p -2.98%Misys (MSY) 332.80p -2.40%Supergroup (SGP) 580.00p -2.36%BTG (BGC) 351.80p -2.25%Dairy Crest Group (DCG) 339.80p -2.07%Michael Page International (MPI) 479.90p -2.06%Premier Farnell (PFL) 212.30p -1.80%COLT Group SA (COLT) 99.80p -1.67%Imagination Technologies Group (IMG) 631.00p -1.64%SVG Capital (SVI) 273.90p -1.58%