Lunchtime market roundup: Europe trades cautiously but FTSE 100 rises

London's FTSE 100 was on the up on Monday as miners climbed despite below-par China data, but trade in mainland Europe was more cautious.

The FTSE 100 index traded up 18.96 points, 0.2%, at 10,769.07. The FTSE 250 fell 38.51 points, 0.2%, at 24,828.91. The AIM all-share was up 2.07 points, 0.3%, at 802.99.

The Cboe UK 100 was up 0.2% at 1,070.20, the Cboe UK 250 was 0.1% lower at 21,595.62, and the Cboe small companies was up 0.1% at 19,127.52.

In European equities on Monday, the CAC 40 in Paris was down 0.1%, but the DAX 40 in Frankfurt was slightly higher.

In London, Rio Tinto rose 1.3%, while Glencore added 1.2% as miners climbed. Miners rose despite China data coming in below expectations. Asia-focused insurer Prudential added 2.1%.

China's retail sales and factory activity grew at a slower pace in July, official data showed on Monday, missing forecasts and highlighting persistent pressure on the world's second-largest economy.

The 0.6% on-year growth in retail sales reported by the National Bureau of Statistics was well short of the 1.5% forecast in a Bloomberg survey and was slowed from the 1% increase seen in June.

Industrial production growth slowed to 4.5% on-year in July from 5.3% the month before and short of the 5% forecast in the Bloomberg survey.

Quintex Intel analyst Stephen Innes commented: "There is no point trying to put lipstick on those numbers: domestic demand remains soft and the property drag has clearly not disappeared. But I would be very careful about extrapolating the July print into another China full-blown growth scare. This was an exceptionally messy month for the Chinese economy from a weather perspective, and the National Bureau of Statistics is explicitly flagging extreme weather alongside external uncertainty as a drag on activity.

"My market read is therefore less bearish than the headline dump suggests, but not bullish on the macro. Don't mistake a weather-distorted month for a sudden collapse in Chinese growth, but equally don't let the weather explanation obscure the bigger issue: households remain cautious, property remains a drag and investment appetite is weak. For China-sensitive assets, the next clean data set matters far more than today's rear-view mirror."

Sterling traded at USD1.3559 on Monday, up from USD1.3550 late Friday. Against the euro, it faded to EUR1.1692 from EUR1.1698. The euro rose to USD1.1608 from USD1.1583. Against the yen, the dollar was steady at JPY159.14 from JPY159.12.

The yield on the US 10-year Treasury was steady at 4.69%. The yield on the US 30-year Treasury narrowed to 5.26% from 5.27%.

A barrel of Brent rose to USD89.17 midday Monday, from USD87.94 at the time of the London equities close on Friday. Gold rose to USD4,398.17 an ounce from USD4,388.17 late Friday.

Naga analyst Frank Walbaum commented: "Gold traded slightly higher early Monday on a lower US dollar and softer Treasury yields as well as receding interest rate hike expectations. The metal remained near a two-month high, benefitting from softer US economic data last week. The CPI, PPI, and retail sales data releases last week supported an increased probability of a hold from the Federal Reserve, priced in at 70%, compared to less than 50% a week ago.

"Markets could turn this week to the minutes from the Fed's July 28-29 meeting, where three of twelve members dissented for an immediate hike, for more indications on the committee's direction. Kevin Warsh's Jackson Hole address, his first as Fed chair, ahead of the September 15-16 decision, could also affect markets."

Moving in lockstep with gold, Fresnillo and Endeavour climbed 2.6% and 2.3%, the best FTSE 100 performers.

Telecom Plus added 4.2%. It affirmed annual profit guidance, with customer growth "running slightly ahead" of target. The provider of subscription-style services for essential household services said it still expects adjusted pretax profit between £80 million and £90 million for the year ending March 31, 2027, at best a decline of 32% from £132.2 million in financial 2026.

In the first four months of the new financial year, annualised multiservice customer growth ran "slightly ahead of our 10% target for the full year", it explained.

Shares in GCM Resources jumped, more than doubling to 9.4 pence from 3.90p on Friday. It was the standout AIM performer.

The Bangladesh government is "finalising the country's national energy mix, with renewable energy, gas and coal-based power generation all under active consideration", GCM reported, noting a statement from Minister of Finance Khasru Mahmud Chowdhury.

"New gas exploration initiatives, alongside further work on solar and coal-based power generation, are already underway," the firm, focused on the Phulbari coal and power project in Bangladesh, said.

GCM added: "The board notes that these reported statements are consistent with the government of Bangladesh's stated commitment to diversifying the country's energy generation mix to include coal-based power. The board will continue to monitor developments in this regard as they relate to the Phulbari coal and power project in north-west Bangladesh."

In New York, the Dow Jones Industrial Average is called down 0.1%, the S&P 500 up 0.2% and the Nasdaq Composite up 0.6%.

SpaceX shares were 1.3% higher in pre-market trade. Nvidia had a roughly USD21 billion holding in SpaceX at the end of the second quarter, according to a regulatory filing on Friday, continuing a trend of the chipmaker buying up stakes in customers and partners.

The stake was revealed in a 13F report filed by Santa Clara, California-based Nvidia, which has been at the heart of the market for chips to serve the high-end artificial intelligence sector.

The filing showed Nvidia owned a USD20.98 billion chunk of SpaceX at the end of June, 122.8 million shares.

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