London midday: FTSE gains as China stocks enjoy best week since 2008

London stocks had extended gains by midday on Friday as Chinese markets enjoyed their best week since 2008 on the back of stimulus measures, and as investors eyed the release of the Federal Reserve’s favourite gauge of inflation.

The FTSE 100 was up 0.4% at 8,319.01.

Stocks in China got a boost after the central bank cut its main policy rate and financial institutions’ reserve requirement ratio (RRR) in a bid to boost lending. The People’s Bank of China cut the seven-day reverse repo rate to 1.5% from 1.7%.

The overall mood was also lifted by better-than-expected US initial jobless claims on Thursday and "some relief that the final print for second quarter GDP growth was held firm at 3%," said Derren Nathan, head of equity research at Hargreaves Lansdown.

"US inflation figures will also be closely scrutinised. Core personal consumption expenditure (PCE) is expected to have risen between 0.1% and 0.2% last month. Any significant rise above that range could dampen the prospects of further rate cuts by the Fed whose current forecast suggests another half point reduction by the end of 2024."

The US PCE figures for August are due at 1330 BST.

In equity markets, Prudential was the top gainer on the FTSE 100 as it said it had entered into a long-term strategic bancassurance partnership with Bank Syariah Indonesia (BSI). Asia-focused Prudential has gained sharply this week, lifted by news of China’s stimulus measures.

Luxury fashion brand Burberry, which is heavily dependent on demand from China, was also a high riser, having gained throughout the week.

Elsewhere, food producer Cranswick rallied after saying it expects annual results to be at the upper end of expectations as first-half trading came in ahead of the previous year.

Clinical-stage biotherapeutics company PureTech Health was up as it said the schizophrenia treatment it developed, which was later sold to Bristol Myers Squibb, has been approved by US regulators, triggering a $29m payment and unlocking potential future royalties.

Rightmove fell after Rupert Murdoch’s Australian property business REA Group made a fourth takeover bid valuing the property portal at £6.2bn.

Market Movers

FTSE 100 (UKX) 8,319.01 0.41%
FTSE 250 (MCX) 21,116.53 0.50%
techMARK (TASX) 4,860.59 0.34%

FTSE 100 - Risers

Prudential (PRU) 700.60p 2.79%
Croda International (CRDA) 4,276.00p 2.22%
Frasers Group (FRAS) 864.00p 2.13%
easyJet (EZJ) 540.80p 1.92%
Convatec Group (CTEC) 230.40p 1.77%
Entain (ENT) 782.80p 1.66%
Smith & Nephew (SN.) 1,150.00p 1.64%
Spirax Group (SPX) 7,610.00p 1.60%
International Consolidated Airlines Group SA (CDI) (IAG) 211.10p 1.44%
Sainsbury (J) (SBRY) 297.80p 1.43%

FTSE 100 - Fallers

Flutter Entertainment (DI) (FLTR) 18,090.00p -2.45%
Rightmove (RMV) 656.60p -1.26%
Fresnillo (FRES) 629.00p -1.18%
Relx plc (REL) 3,569.00p -0.64%
Beazley (BEZ) 782.00p -0.64%
CRH (CDI) (CRH) 6,912.00p -0.55%
Rolls-Royce Holdings (RR.) 524.00p -0.53%
Intermediate Capital Group (ICG) 2,332.00p -0.51%
Diploma (DPLM) 4,498.00p -0.40%
Sage Group (SGE) 1,021.50p -0.29%

FTSE 250 - Risers

Burberry Group (BRBY) 707.80p 6.63%
Cranswick (CWK) 5,010.00p 6.26%
Fidelity China Special Situations (FCSS) 209.00p 4.92%
PureTech Health (PRTC) 156.80p 4.26%
Wizz Air Holdings (WIZZ) 1,474.00p 4.17%
Indivior (INDV) 742.50p 4.06%
Close Brothers Group (CBG) 433.60p 3.48%
Aston Martin Lagonda Global Holdings (AML) 156.40p 3.30%
Harbour Energy (HBR) 269.50p 2.98%
NCC Group (NCC) 177.00p 2.91%

FTSE 250 - Fallers

Bakkavor Group (BAKK) 150.00p -3.23%
Volution Group (FAN) 602.00p -3.06%
Hochschild Mining (HOC) 193.60p -2.62%
Baillie Gifford Japan Trust (BGFD) 724.00p -1.90%
Bank of Georgia Group (BGEO) 3,750.00p -1.83%
Mitchells & Butlers (MAB) 299.00p -1.81%
Coats Group (COA) 100.80p -1.18%
Moonpig Group (MOON) 212.50p -1.16%
Centamin (DI) (CEY) 156.00p -1.08%
Alpha Group International (ALPH) 2,295.00p -1.08%