A steeper-than-expected recession in Japan and poor data from China and Germany dampened market sentiment on Monday, with UK stocks starting the week on the back foot.

London’s FTSE 100 was trading 0.5 per cent lower at 6,712 early on after closing out last week at 6,742.84, its highest close since 21 November.

The contraction in Japanese gross domestic product (GDP) was worse than originally thought in the July-September period, as investment and public spending increased by less than expected.

Japanese GDP shrank at an annual rate of 1.9 per cent, according to the Japanese Cabinet Office, compared with the initial estimate of a 1.6 per cent contraction.

In other economic news, China’s trade surplus rose to a record high in November, but growth in exports slowed dramatically and imports declined. Chinese imports fell at a 6.7 per cent year-on-year clip in November, versus a rise of 4.7 per cent in October, while annual export growth slowed to 4.7 per cent from 10.6 per cent the month before.

Meanwhile, German industrial production increased by just 0.2 per cent in October, disappointing analysts who had expected 0.4 per cent growth. September’s data was also revised lower to show an increase of 1.1 per cent, compared with the initial 1.4 per cent estimate.

Sainsbury’s gains on takeover hopes

UK grocery chain J Sainsbury was on the rise after reports that an activist fund is talking with investors about buying up shares in the retailer. The Sunday Telegraph said Crystal Amber is looking to build a stake “as part of a bold plan that could see an attempt to engineer a takeover of the supermarket giant”.

Mining stocks were mostly lower with heavyweights BHP Billiton, Anglo American, Rio Tinto and Glencore trading in the red.

Precious metal producers Randgold Resources and Acacia Mining, however, were making gains as gold and silver prices advanced. Randgold and Acacia were also boosted by Deutsche Bank which lifted its ratings on the stocks to ‘buy’.

Insurer Esure edged lower after agreeing to buy the remaining 50 per cent stake of price-comparison group Gocompare.com for £95m. The deal will increase Esure’s ownership of Newport-based Gocompare to 100% after its initial investment in 2010.

Market Movers
techMARK 2,979.31 -0.02%
FTSE 100 6,712.27 -0.45%
FTSE 250 15,989.02 -0.09%

FTSE 100 – Risers
Randgold Resources Ltd. (RRS) 4,279.00p +2.15%
Sainsbury (J) (SBRY) 242.00p +1.55%
Tullow Oil (TLW) 402.10p +1.54%
Intertek Group (ITRK) 2,349.00p +1.29%
ARM Holdings (ARM) 957.00p +1.11%
BG Group (BG.) 913.90p +0.71%
Fresnillo (FRES) 724.50p +0.69%
Petrofac Ltd. (PFC) 782.50p +0.58%
St James’s Place (STJ) 826.00p +0.55%
TUI Travel (TT.) 452.10p +0.47%

FTSE 100 – Fallers
Marks & Spencer Group (MKS) 482.50p -2.90%
easyJet (EZJ) 1,724.00p -2.10%
Hargreaves Lansdown (HL.) 974.50p -1.67%
Weir Group (WEIR) 1,809.00p -1.58%
Mondi (MNDI) 1,086.00p -1.45%
SABMiller (SAB) 3,373.50p -1.42%
Aberdeen Asset Management (ADN) 461.80p -1.26%
BHP Billiton (BLT) 1,457.00p -1.15%
Associated British Foods (ABF) 3,248.00p -1.10%
Intu Properties (INTU) 346.90p -1.03%

Source: ShareCast