London close: Stocks start year with positive session

Stocks in London managed a positive finish to the first trading session of the year, helped by a drop in sterling and amid optimism around the reopening of the Chinese economy.

The FTSE 100 ended the session up 1.37% at 7,554.09, and the FTSE 250 was ahead 1.49% at 19,134.34.

Sterling was meanwhile in a mixed state, last trading down 0.68% on the dollar at $1.1964, as it strengthened 0.35% against the euro to change hands at €1.1333.

“Signs of weakening inflation in Germany have given European stocks the boost they were looking for to build on yesterday’s positive day, while hopes of a macro recovery have helped to push the FTSE 100 to a brief seven-month high,” said IG chief market analyst Chris Beauchamp.

“It is certainly too much to extrapolate from one day’s trading, but the apparent enthusiasm of investors for European stocks versus their US cousins does mark a big change from the pre-pandemic years.

Even rhetoric from the ECB about the need for more sharp rate rises doesn’t seem to have deterred investors, which suggests that the bearishness of 2022 seems to have been carried a little too far.”

In economic news, survey compiler Caixin reported a decline in its Chinese manufacturing sector purchasing managers' index (PMI) earlier, to 49.0 in December from a reading of 49.4 for November, and below consensus expectations for 49.1.

However, a sub-index tracking future output rose from 56.1 to 59.3, which Duncan Wrigley at Pantheon Macroeconomics said provided a ray of hope.

"In any case, the overall short-term picture for China’s economy is still dark as it struggles with mountains of Covid infections," he added.

On home shores, S&P Global revised up its UK factory PMI for December to 45.3, from a preliminary reading of 44.7.

That was, however, still lower than the 46.5 point reading for November and indicated a fifth consecutive month of contraction for the sector.

In equity markets, Ferrexpo was up 3.56% after one of its owners Kostyantin Zhevago, detained last week by police in France, resigned from the company’s board.

On the downside, components manufacturer Essentra slipped 0.21% after it said chief executive Paul Forman had stood down from his role on 31 December.

Forman had been replaced by Scott Fawcett, who took up the role on 1 January.

Budget airline Wizz Air descended 1.46% after reporting 4,180,310 passengers carried last month, representing a 58.4% increase compared to December 2021, at a load factor of 84.5%.

Reporting by Josh White for Sharecast.com. Additional reporting by Alexander Bueso.

Market Movers

FTSE 100 (UKX) 7,554.09 0.00%
FTSE 250 (MCX) 19,134.34 0.00%
techMARK (TASX) 4,428.59 0.00%

FTSE 100 - Risers

Rolls-Royce Holdings (RR.) 98.91p 6.13%
Ocado Group (OCDO) 648.60p 5.16%
Persimmon (PSN) 1,272.50p 4.56%
Barratt Developments (BDEV) 414.40p 4.44%
Prudential (PRU) 1,177.00p 4.39%
Whitbread (WTB) 2,676.00p 4.12%
International Consolidated Airlines Group SA (CDI) (IAG) 128.86p 4.05%
Lloyds Banking Group (LLOY) 47.13p 3.79%
British Land Company (BLND) 408.20p 3.32%
Sainsbury (J) (SBRY) 224.90p 3.31%

FTSE 100 - Fallers

Centrica (CNA) 91.94p -4.75%
SSE (SSE) 1,663.50p -2.83%
Coca-Cola HBC AG (CDI) (CCH) 1,938.50p -1.75%
Beazley (BEZ) 668.00p -1.69%
Glencore (GLEN) 544.40p -1.45%
Haleon (HLN) 323.00p -1.33%
Diageo (DGE) 3,612.50p -1.03%
Scottish Mortgage Inv Trust (SMT) 716.60p -0.86%
Abrdn (ABDN) 187.75p -0.74%
Weir Group (WEIR) 1,659.00p -0.60%

FTSE 250 - Risers

IP Group (IPO) 60.25p 8.07%
Hochschild Mining (HOC) 74.70p 6.33%
Molten Ventures (GROW) 375.80p 6.10%
Currys (CURY) 56.85p 6.06%
Travis Perkins (TPK) 938.20p 5.49%
Playtech (PTEC) 536.00p 5.30%
Future (FUTR) 1,334.00p 5.29%
OSB Group (OSB) 504.50p 5.15%
TUI AG Reg Shs (DI) (TUI) 140.65p 4.88%
Close Brothers Group (CBG) 1,098.00p 4.87%

FTSE 250 - Fallers

Drax Group (DRX) 675.50p -4.48%
W.A.G Payment Solutions (WPS) 76.70p -4.28%
Petershill Partners (PHLL) 162.40p -3.91%
Harbour Energy (HBR) 293.00p -3.75%
Capricorn Energy (CNE) 252.20p -3.67%
Clarkson (CKN) 3,130.00p -3.25%
Energean (ENOG) 1,282.00p -2.06%
Diversified Energy Company (DEC) 114.10p -1.98%
Telecom Plus (TEP) 2,155.00p -1.82%
Hilton Food Group (HFG) 548.00p -1.62%