London open: Stocks in the black as miners gain on China data

Michele Maatouk WebFG News | 17 Jul, 2017 08:48 - Updated: 08:48 | | |

London Stock Exchange AIM LSE shares

London stocks edged higher in early trade on Monday, with miners in the black following the release of encouraging Chinese data.

At 0830 BST, the FTSE 100 was up 0.4% to 7,407.45, while the pound was up 0.1% against the euro at 1.1430 and down 0.1% versus the dollar 1.3080.

Heavily-weighted mining stocks got a boost after data revealed China's second-quarter gross domestic product grew 6.9% from a year earlier, unchanged from the first quarter but ahead of expectations for 6.8%growth.

On a quarterly basis, the Chinese economy grew 1.7% compared to 1.3% in the first quarter, as expected. Chinese retail sales, industrial production and fixed asset investment data for June were also encouraging.

Spreadex analyst Connor Campbell said: "Understandably the FTSE’s commodity stocks were pretty pleased with the outcome of all this, allowing the UK index itself to surge 50 points higher to cross 7,400 once again.

"It helps that the pound appears to be taking a breather this morning. The currency opened flat against the dollar just below 1.31, unable just yet to build on its recent Fed-inspired 10 month peak. Sterling fared slightly better against the euro, climbing 0.1% to keep at a one month high."

In corporate news, ITV was on the front foot after it poached Carolyn McCall from easyJet to be its new chief executive.

Carillion advanced as it won HS2 contracts worth £1.4bn as part of its CEK joint venture with Kier and Eiffage. Meanwhile, Balfour Beatty gained as it won two contracts worth £2.5bn with JV partner Vinci.

Centrica edged higher as it and Stadtwerke München agreed to combine Centrica's European oil and gas exploration and production business with Bayerngas Norge to form a new joint venture.

Weir Group surged as it said its updated outlook for the group's full-year performance is now for strong constant currency revenue and profit growth, with revenues and operating profits in the oil & gas division set to be above the upper end of analysts' estimates as upstream North American markets have recovered more strongly than anticipated in recent weeks.

LondonMetric nudged up after agreeing to buy two new distribution warehouses at Logistics City in Frimley for £13.1m via a forward funding contract with Kier Property.

Polymetal International was trading higher as it upped its stake in its Nezhda gold deposit by 7% to 24.7% and acquired an option to buy the remaining 75.3% for between $105m and $180m.

UDG Healthcare ticked up as it announced the acquisition of US-based healthcare communications business Cambridge BioMarketing for up to $35m.

Elsewhere, the latest survey from Rightmove released overnight revealed that the prices of homes put up for sale in the UK remained just about flat last month.

Newly-marketed property prices edged up 0.1% in June, which was stronger than the previous month’s fall of 0.4%, and is a solid performance as the start of the summer holiday season generally has a dampening effect on both prices and activity, Rightmove said.

As the fundamentals of the housing market remain good, the online property experts said, this had led to the number of sales agreed numbers remaining almost identical to those in 2016, with many parts of the country seeing as high a proportion of properties marked as sold than at any time in the last seven years.

Market Movers

FTSE 100 (UKX) 7,409.93 0.43%
FTSE 250 (MCX) 19,471.41 0.32%
techMARK (TASX) 3,500.65 0.36%

FTSE 100 - Risers

ITV (ITV) 178.30p 1.89%
Ashtead Group (AHT) 1,607.00p 1.64%
Anglo American (AAL) 1,135.00p 1.61%
AstraZeneca (AZN) 5,077.00p 1.57%
Fresnillo (FRES) 1,501.00p 1.35%
Mondi (MNDI) 2,040.00p 1.34%
Antofagasta (ANTO) 870.00p 1.34%
Glencore (GLEN) 319.85p 1.19%
Micro Focus International (MCRO) 2,108.00p 0.91%
Rio Tinto (RIO) 3,479.00p 0.90%

FTSE 100 - Fallers

Pearson (PSON) 628.00p -1.18%
International Consolidated Airlines Group SA (CDI) (IAG) 621.00p -0.88%
easyJet (EZJ) 1,400.00p -0.78%
Barclays (BARC) 207.45p -0.50%
Royal Mail (RMG) 399.00p -0.50%
Royal Bank of Scotland Group (RBS) 251.50p -0.36%
Direct Line Insurance Group (DLG) 363.90p -0.30%
Standard Life (SL.) 413.40p -0.27%
WPP (WPP) 1,550.00p -0.19%
Rolls-Royce Holdings (RR.) 913.00p -0.16%

FTSE 250 - Risers

Carillion (CLLN) 60.85p 8.37%
Weir Group (WEIR) 1,936.00p 6.14%
Evraz (EVR) 241.90p 3.46%
Kaz Minerals (KAZ) 601.00p 2.82%
Morgan Advanced Materials (MGAM) 297.50p 2.27%
Balfour Beatty (BBY) 268.80p 2.24%
Vesuvius (VSVS) 587.50p 1.56%
Petrofac Ltd. (PFC) 456.10p 1.42%
Electra Private Equity (ELTA) 1,643.00p 1.42%
Tullow Oil (TLW) 166.60p 1.40%

FTSE 250 - Fallers

CYBG (CYBG) 272.90p -2.08%
TalkTalk Telecom Group (TALK) 185.50p -1.43%
Metro Bank (MTRO) 3,536.00p -1.34%
Sports Direct International (SPD) 293.30p -0.88%
Caledonia Investments (CLDN) 2,841.00p -0.80%
JD Sports Fashion (JD.) 342.00p -0.75%
Aldermore Group (ALD) 224.10p -0.75%
Capita (CPI) 656.00p -0.61%
JPMorgan American Inv Trust (JAM) 380.00p -0.60%
Computacenter (CCC) 878.00p -0.57%

More news

17 Dec Sunday newspaper round-up: Poundland, Lloyds, Brexit, broadband, Amazon

The scandal-hit parent company of high street discount chain Poundland will this week face key creditors and insurers at a meeting that could determine the future of its British retail operations. Poundland is already under intense pressure after Atradius - one of the credit insurers on which suppliers rely to ensure they get paid - reduced its cover for the group. Reliable industry sources say another credit insurer, Euler Hermes, is also considering cutting cover. - The Sunday Times

15 Dec London close: Footsie gains as pound drops, Wall Street hits fresh highs

The top flight index recovered some ground on Friday, but mostly on account of weakness in Sterling after German Chancellor Angela Merkel reportedly echoed other European Union officials, saying "the most difficult phase is ahead of us".

15 Dec Week ahead: US data, Catalan elections in focus

The focus in the coming week will continue to be on the ebb and flow of data out of the US, including Republicans' progress on securing passage of their tax cuts.

15 Dec US open: Stocks jump as Republicans move to secure passage of tax cuts

Wall Street is heading higher again on Friday amid news that Republicans were tweaking their proposed tax cuts in order to secure prompt passage of the US tax bill.

15 Dec Airbus chief executive to step down in board shake-up

The chief executive of French planemaker Airbus will step down from his position in 2019 as the company announced a major shake-up of its management team.

15 Dec FTSE 250 movers: TalkTalk rises but Serco gives back gains

London’s FTSE 250 was up 0.1% to 20,023.23 in afternoon trade on Friday as the Christmas lull kicked in.

15 Dec US industrial production rises slightly less than expected in November

Industrial production in the States rose slightly less quickly than expected last month, despite higher output of business equipment and materials.

15 Dec Strategic Minerals renegotiates acquisition of Leigh Creek Copper Mine

Diversified mineral production and development company Strategic Minerals announced on Friday that, after the successful completion of technical and financial due diligence on the Leigh Creek Copper Mine company, it has agreed to continue with the acquisition on renegotiated terms.

15 Dec FTSE 100 movers: Sky jumps but retailers retreat on H&M sales

London’s FTSE 100 was up 0.3% to 7,469.23 in quiet afternoon trade on Friday.

15 Dec Gfinity partners with Microsoft for next Halo World Championship

International esports entertainment group Gfinity has been named as a preferred event partner to Microsoft for the forthcoming ‘Halo World Championship 2018’ for the next season, it announced on Friday.