London midday: FTSE falls as investors mull GDP, CBI survey; miners shine

(Sharecast News) - London stocks had fallen further by midday on Monday as investors mulled a downbeat survey from the Confederation of British Industry and uninspiring GDP figures, although miners bucked the trend as gold and silver prices hit fresh highs.

The FTSE 100 was down 0.5% at 9,852.29.

Russ Mould, investment director at AJ Bell, said: "The FTSE 100 started Christmas week on the back foot, with healthcare and utility stocks acting as a drag on the index.

"Precious metals miners led the way, as they have for much of 2025, with gold hitting a new all-time high on expectations of further interest rate cuts from the Federal Reserve and robust demand for its safe haven qualities.

"An end-of-the-week rally in US stocks, driven by revived enthusiasm for AI, which also saw Asian markets move higher overnight, is not so relevant for a UK stock market largely bereft of tech names of any scale.

"A poll from the Confederation of British Industry paints a gloomy picture for the UK economy heading into 2026. It suggests private sector activity is on course to fall in the fourth quarter, with expectations for the first three months of next year strikingly downbeat."

Data released earlier by the Office for National Statistics showed the economy grew 0.1% in July to September, in line with the initial estimate. For the second quarter, growth was revised down to 0.2% from 0.3%.

ONS director of economic statistics Liz McKeown said: "Today's updated figures paint the same picture as our initial estimate, with growth continuing to slow in the third quarter.

"Growth in services were partially offset by falls in production, with a marked drop in car manufacturing.

"Our latest figures show the household saving ratio, whilst falling in recent periods, remains high by historic standards."

GDP per head was estimated to have shown no growth in the latest quarter and was up 0.9% compared with the same quarter a year ago. Real household disposable income per head fell 0.8% in the latest quarter, following no change in the previous quarter.

Elsewhere, the CBI's latest Growth Indicator showed that private sector firms expect business activity to weaken again over the coming three months.

The growth indicator's weighted balance - the percentage of firms expecting an increase minus those expecting a decline - came in at -30% in December, extending a run of negative predictions that started in late-2024.

The balance for business volumes in the services sector came in at -29%, driven by weak readings in business and professional services (-24%) and consumer services (-46%).

Distribution sales expectations fell to their lowest level since June 2020 at -47%, while manufacturers were predicting a modest fall in activity at -17%, which was slightly less negative than the previous month.

The gloomy outlook came as the downturn in private sector activity over the three months to December was relatively unchanged at -34%, compared with -35% for the three months to November, with all sectors reporting declines.

"Our latest surveys round off a disappointing year for private sector growth. They mark a continuation of the headwinds that have plagued businesses over the past 12 months: tepid demand conditions, with households cautious around spending; and strong cost pressures squeezing margins," said CBI deputy economist Alpesh Paella.

"Uncertainty ahead of November's Budget also put the brakes on key spending decisions and big projects, choking up pipelines of work. The latest Growth Indicator suggests that the alleviation of this uncertainty hasn't materially boosted activity."

In equity markets, precious metals miner Fresnillo and gold miners Hochschild and Endeavour all shone as gold and silver prices hit record highs amid growing expectations of US rate cuts and heightened geopolitical tensions.

Heavily-weighted miners rallied, with Rio Tinto, Antofagasta and Glencore among the top risers on the FTSE 100.

On the downside, gambling operator Rank Group slumped after saying its Spanish businesses had been hit by a payment fraud costing it �7.1m.

The group said it had reported the incident at the Enracha and Yo business to law enforcement agencies and was supporting investigations, as well as carrying out its own internal probe with the help of an external law firm.

Given the exceptional nature of the incident, Rank expects to treat the financial impact as a separately disclosed item in relation to its 2025/26 performance.

Russ Mould said: "Better known for its bingo halls in the UK, it is a more obscure part of the business which has tripped Rank Group up.

"While the sums involved in the payment fraud at Rank's Spanish operations are not immaterial the share price reaction likely also reflects some uncertainty about whether this will prove to be a more extensive issue for the company.

"Investors will be on tenterhooks as they await the results of an investigation like a bingo player desperately waiting for the number which will let them call 'house'."

Harbour Energy fell as it announced the $3.2bn acquisition of LLOG Exploration Company, marking its first entry into the deepwater Gulf of Mexico market.

Market Movers

FTSE 100 (UKX) 9,852.29 -0.46%

FTSE 250 (MCX) 22,236.31 -0.34%

techMARK (TASX) 5,576.15 -0.40%

FTSE 100 - Risers

Fresnillo (FRES) 3,248.00p 2.46%

Rio Tinto (RIO) 5,891.00p 0.91%

Antofagasta (ANTO) 3,168.00p 0.86%

Halma (HLMA) 3,610.00p 0.78%

Metlen Energy & Metals (MTLN) 41.50p 0.36%

Glencore (GLEN) 390.95p 0.36%

Babcock International Group (BAB) 1,253.00p 0.24%

HSBC Holdings (HSBA) 1,169.60p 0.22%

Bunzl (BNZL) 2,098.00p 0.19%

Airtel Africa (AAF) 327.00p 0.18%

FTSE 100 - Fallers

DCC (CDI) (DCC) 4,762.00p -4.30%

Diageo (DGE) 1,631.50p -2.80%

CRH (CDI) (CRH) 9,302.00p -2.21%

Coca-Cola Europacific Partners (DI) (CCEP) 6,830.00p -2.15%

Croda International (CRDA) 2,746.00p -1.58%

Imperial Brands (IMB) 3,126.00p -1.57%

Marks & Spencer Group (MKS) 321.90p -1.44%

Pearson (PSON) 1,042.50p -1.42%

Convatec Group (CTEC) 238.80p -1.40%

Reckitt Benckiser Group (RKT) 5,996.00p -1.38%

FTSE 250 - Risers

Pan African Resources (PAF) 117.20p 4.64%

Hochschild Mining (HOC) 495.00p 3.56%

Ceres Power Holdings (CWR) 227.40p 2.71%

Endeavour Mining (EDV) 4,008.00p 2.51%

Vietnam Enterprise Investments (DI) (VEIL) 774.00p 2.25%

Hammerson (HMSO) 322.00p 1.58%

BlackRock World Mining Trust (BRWM) 815.00p 1.49%

Allianz Technology Trust (ATT) 528.00p 1.34%

Ithaca Energy (ITH) 160.70p 1.20%

Edinburgh Worldwide Inv Trust (EWI) 217.50p 1.16%

FTSE 250 - Fallers

Rank Group (RNK) 98.00p -7.02%

Harbour Energy (HBR) 196.80p -4.65%

Ocado Group (OCDO) 240.00p -3.42%

Chrysalis Investments Limited NPV (CHRY) 111.00p -3.31%

Cranswick (CWK) 4,970.00p -2.74%

Paragon Banking Group (PAG) 859.00p -2.72%

Applied Nutrition (APN) 246.25p -2.67%

Bakkavor Group (BAKK) 237.00p -2.27%

Wizz Air Holdings (WIZZ) 1,251.00p -2.27%

Tate & Lyle (TATE) 371.80p -2.26%