London open: FTSE nudges lower as gambling stocks tank

London stocks nudged down in early trade on Monday as investors eyed the release of key UK data points this week, with gambling shares under the cosh amid reports of a potential £3bn tax raid on the sector.

At 0830 BST, the FTSE 100 was down 0.1% at 8,243.46.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “Stocks are largely set to tread water at the start of the week as investors look for a sense of direction as US earnings season builds, and the latest stimulus plan from China comes under scrutiny.

“The FTSE 100 has opened lower, following a volatile session for Chinese stocks after another underwhelming announcement from authorities about further steps to boost the economy. Although investors have largely welcomed the reiteration that more support would be on the way for consumers and the property sector, the lack of detail about how this would be achieved and the numbers involved, held back gains. Oil prices also eased off, with Brent Crude falling back to $78 a barrel, as hopes for a faster rebound of demand in China dissipate.

“Wall Street is set to waver near the top of its two-year bull market run, as investors await more results from corporate America, with more big banks set to report. The season has set off on the right foot, with JP Morgan and Wells Fargo reporting better-than-expected earnings. Consumer resilience is shining through and that’s set the bar high for Bank of America, Goldman Sachs and Morgan Stanley which are reporting this week. The US retail sales snapshot will also be in focus, and investors will be keen to see how solid spending in the third quarter, reported by the banks, will have propped up custom on main street.

“Investors will be keeping a close eye on UK labour market data out tomorrow and the latest CPI inflation snapshot due on Wednesday for clues about how determined policymakers may be to cut interest rates next month. With inflation staying steady in August there are hopes that prices will have remained calm in September.”

In equity markets, Entain, Flutter, Evoke and Rank Group all tanked following reports the government is planning a tax raid of up to £3bn on the gambling sector in this month’s Budget.

Recruiter PageGroup nudged lower as it reported a 13.5% drop in third-quarter gross profit to £201.4m, with challenging market conditions and declining confidence affecting client and candidate decision-making across all regions.

On the upside, TI Fluid Systems surged as it said it would be minded to recommend an improved takeover proposal from ABC Technologies at 200p a share, should a firm offer be made. TI Fluid has already rejected offers of 165p a share, 188p a share and 195p a share.

The latest proposal, made on 10 October, represents a premium of about 53.4% to the closing share price on 21 August, which was the last business day prior to ABC Technologies submitting its first proposal to the group.

Ashmore was also a high riser as it said assets under management rose by $2.5bn in the first quarter, with emerging markets delivering strong returns.

Luxury handbag maker Mulberry surged as it said it was considering its position after major shareholder Challice said it had no intention of selling its 56% stake to Mike Ashley’s Frasers Group despite an increased bid for the company.

The statement came after Frasers, which already holds 37% of Mulberry, upped its offer for the rest of the firm to 150p a share from 130p late on Friday.

Market Movers

FTSE 100 (UKX) 8,243.46 -0.12%
FTSE 250 (MCX) 20,729.11 -0.17%
techMARK (TASX) 4,750.37 -0.44%

FTSE 100 – Risers

SSE (SSE) 1,863.00p 1.80%
United Utilities Group (UU.) 1,043.00p 1.21%
Bunzl (BNZL) 3,508.00p 1.21%
Severn Trent (SVT) 2,565.00p 1.14%
BAE Systems (BA.) 1,279.50p 0.75%
Sainsbury (J) (SBRY) 273.00p 0.74%
GSK (GSK) 1,490.00p 0.68%
Spirax Group (SPX) 6,895.00p 0.58%
B&M European Value Retail S.A. (DI) (BME) 408.00p 0.49%
AstraZeneca (AZN) 11,820.00p 0.48%

FTSE 100 – Fallers

Entain (ENT) 658.60p -14.13%
Flutter Entertainment (DI) (FLTR) 17,180.00p -7.34%
Rolls-Royce Holdings (RR.) 530.40p -1.27%
International Consolidated Airlines Group SA (CDI) (IAG) 195.95p -1.21%
Barclays (BARC) 233.35p -1.06%
easyJet (EZJ) 490.70p -0.99%
Prudential (PRU) 670.20p -0.92%
Croda International (CRDA) 4,010.00p -0.91%
Barratt Redrow (BTRW) 457.50p -0.85%
Fresnillo (FRES) 658.00p -0.83%

FTSE 250 – Risers

TI Fluid Systems (TIFS) 183.80p 20.76%
Ashmore Group (ASHM) 207.20p 6.47%
Bridgepoint Group (Reg S) (BPT) 338.20p 4.64%
North Atlantic Smaller Companies Inv Trust (NAS) 3,940.00p 1.55%
Hochschild Mining (HOC) 206.50p 1.47%
Schroder Asia Pacific Fund (SDP) 552.00p 1.28%
BlackRock World Mining Trust (BRWM) 527.00p 1.15%
SDCL Energy Efficiency Income Trust (SEIT) 63.50p 1.11%
Elementis (ELM) 147.20p 1.10%
Pennon Group (PNN) 553.50p 1.10%

FTSE 250 – Fallers

Petershill Partners (PHLL) 208.00p -4.59%
Baltic Classifieds Group (BCG) 292.50p -4.26%
Carnival (CCL) 1,404.50p -2.87%
Indivior (INDV) 560.00p -2.86%
Grafton Group Ut (CDI) (GFTU) 1,011.40p -2.69%
Helios Towers (HTWS) 105.60p -2.40%
Playtech (PTEC) 724.00p -2.16%
Workspace Group (WKP) 613.00p -2.08%
Future (FUTR) 962.00p -2.04%
Jupiter Fund Management (JUP) 84.50p -1.74%