The FTSE 100 was 0.1 per cent higher at 6,554 in early deals, after having closed Friday’s session at 6,546.47, its best finish since 6 October.

According to Mike van Dulken, head of research at Accendo Markets, the FTSE 100 “remains above the breakout level of 6,500 which should serve as support for any weakness”.

Separate surveys on China’s manufacturing activity released over recent days have added to worries about a slowdown in growth in October. The government’s official China manufacturing purchasing managers’ index (PMI) unexpectedly declined from 51.1 to a five-month low of 50.8, while the final estimate of HSBC’s own survey showed that growth – as measured by figures over 50 – was subdued at 50.4, unchanged from the flash reading last week.

Economist Julian Evans-Pritchard from Capital Economics said that the data “is consistent with cooling domestic demand and a further slowdown in growth going into the fourth quarter”.

Meanwhile, the official China non-manufacturing PMI also fell from 54 to 53.8 last month, its lowest since February.

Data from elsewhere is also likely to be closely watched on Monday; the Markit Eurozone and UK manufacturing PMIs are due out in morning trade, while the ISM US manufacturing index is scheduled for release in the afternoon.

HSBC disappoints, airlines rise

HSBC‘s share price slipped after the company reported a 12 per cent drop in underlying pre-tax profit in the third quarter to $4.41bn on the back of a number of “significant items”. These included customer redress for mis-sold PPI, a charge for a US housing probe and provisions for an investigation into alleged currency-rate rigging. Reported revenues were 5 per cent higher at $15.8bn, but broadly unchanged on an underlying basis.

Airline stocks were performing well in early trading after Irish low-cost carrier Ryanair lifted its annual profit guidance by nearly 20 per cent after a jump in winter bookings. Easyjet and IAG were also in demand.

Mining stocks were mostly weaker with Fresnillo, Glencore, Angofagasta and Rio Tinto among the worst performers as investors reacted to the disappointing data from China. Glencore was also being affected by a ratings downgrade from Nomura to ‘reduce’.

Anglo American, however, edged higher after it was reported over the weekend that X2 Resources had made a bid for Anglo’s Chilean copper mines, Brazilian nickel mines and some coal projects. X2 Resources is run by Mick Davis, the former boss of Xstrata.

Market Movers

techMARK 2,785.29 +0.23%
FTSE 100 6,553.69 +0.11%
FTSE 250 15,532.69 +0.20%

FTSE 100 – Risers
easyJet (EZJ) 1,538.00p +2.53%
Petrofac Ltd. (PFC) 1,084.00p +2.26%
Standard Chartered (STAN) 955.40p +1.68%
Tullow Oil (TLW) 492.80p +1.44%
ITV (ITV) 205.60p +1.28%
International Consolidated Airlines Group SA (CDI) (IAG) 414.30p +1.25%
Morrison (Wm) Supermarkets (MRW) 156.70p +1.23%
Intertek Group (ITRK) 2,751.00p +1.07%
Meggitt (MGGT) 455.80p +1.04%
Rolls-Royce Holdings (RR.) 851.50p +1.01%

FTSE 100 – Fallers
Royal Bank of Scotland Group (RBS) 382.70p -1.37%
Royal Mail (RMG) 435.70p -1.25%
United Utilities Group (UU.) 845.00p -1.11%
Centrica (CNA) 299.40p -1.02%
G4S (GFS) 253.10p -0.94%
SSE (SSE) 1,585.00p -0.88%
National Grid (NG.) 918.00p -0.86%
Lloyds Banking Group (LLOY) 76.50p -0.82%
Severn Trent (SVT) 1,980.00p -0.80%
Burberry Group (BRBY) 1,520.00p -0.72%