London open: Stocks rise despite IMF cut to global growth forecasts
Stocks were moving higher in early trading following the release of better-than-expected growth figures in China.
As of 08:55 the FTSE 100 was 31 points higher at 6,617.
China's gross domestic product expanded at a 7.4% clip in the fourth quarter of 2014, a tenth of a percentage point better than had been expected. However, that was sufficient to boost equity markets across the Asia Pacific region and lend a hand to stocks across the European continent in early trading.
Berenberg economist Robert Wood noted that despite 2014 having registered its slowest growth in 24 years, the expansion settled in near the official growth target of 7.5%.
Nonetheless, traders will take note of the International Monetary Fund's overnight decision to cut its forecast for the world's economic growth in 2015. The Washington-based lender now sees the world's economy expanding at a 3.5% clip in 2015, down from the 3.8% pace projected in October.
Significantly, it also cut its projection for global inflation this year by half, to 1%.
"The world economy is facing strong and complex cross currents,” Olivier Blanchard, the IMF’s chief economist, said.
“On the one hand, major economies are benefiting from the decline in the price of oil. On the other, in many parts of the world, lower long-run prospects adversely affect demand, resulting in a strong undertow," he added.
Clerical error costs bookie dearly
William Hill was forced to release its latest trading statement 11 hours earlier than planned after an administrative error, The Telegraph reported. According to the paper, the bookmaker officially sent out the figures, which showed that profits fell 7% in the fourth quarter, at 8pm on Monday, after the update was accidentally emailed to analysts.
Fast-moving consumer goods giant Unilever saw slower growth than expected in 2014, with underlying sales up 2.9%, faster than the markets it operates in but lower than analyst forecasts, with volumes higher by 1% and prices advancing by 1.9%.
The company's core operating margins improved by 40 basis points at current exchange rates, free cash-flow came in at €3.1bn following €0.8bn in taxes on the profits earned from disposals, while core earnings were up by 11%.
Rio Tinto finished the year with robust fourth quarter results, though the natural resources behemoth unearthed less copper than was forecasts.
Iron ore production of 79.1m tons was 12% higher than the same period a year before but came in behind the 82.2m consensus forecast, though shipments of the metal were 17% higher year on year.
After the Swiss National Bank caused a wave of client losses that led to a £30m hit on the company, forex and spread-betting provider IG Group posted a strong set of interim results.
The London-based group, which opened a Swiss office in October, recorded record revenue in the half year after a subdued first quarter, with trading revenue up 8% at £197.4m, profit before tax up 2.8% to £101.4m and diluted earnings per share up 5.4% at 21.44p.