London midday: FTSE powers ahead, led by mining and oil stocks
London stocks moved sharply higher to midday, powered by gains in mining stocks after commodity prices saw across-the-board gains during Asian trading hours.
Boosting market sentiment, the four main US equity benchmarks all hit fresh record highs in the previous session, for the first time since 1999 and amid light trading conditions in the run-up to Thanksgiving Day.
At 1200 GMT, the FTSE 100 was up 1.06% or 71.94 points to 6,849.90.
Oil prices were higher, but off their best levels of the day, after a Nigerian delegate who was entering the second and last of two days of OPEC technical meetings in Vienna told the Journal that "it is likely everybody will be on board by the end of the day”.
Meeting at the oil cartel´s headquarters in Austria's capital, the world´s major oil producers are trying to thrash out the details of how to distribute production amongst themselves.
West Texas Intermediate was up 0.62% to $48.54 a barrel and Brent crude was 0.69% higher at $49.24.
Alongside the gains in oil, some traders were referencing reports of issues with deliveries due to bad weather in Asia for the rise in iron ore futures and falls in LME stockpiles for gains in copper prices.
In any case, as of 1206 GMT March 2017, COMEX-traded copper futures were up 1.33% to $2.5610 a pound.
On a related note, according to Capital Economics´s China Activity Proxy index, the Asian country´s GDP growth accelerated from 5.6% in September to 6.0% year-on-year in October, its fastest pace since February 2014.
However, "there are already signs that the property market is starting to cool. Credit growth has peaked. A sharp drop-off in activity is not likely. But growth is likely to slow in 2017," the think-tank said in a research note sent to clients.
Positive economic data
The resilience of the UK´s economy buoyed tax profits, leading to a larger-than-expected reduction in the government´s borrowing requirements in October.
Nonetheless, economists warned that the funding requirement was still expected to rise to £68.2bn in the current financial year, far outpacing the £55.5bn forecast in the March budget, which meant limited scope for government largesse in the Autumn statement.
On a brighter note, manufacturers' order books improved significantly in November, with the CBI´s Industrial Trends survey´s total orders balance moving from a reading of -17 in October to -3 for November (Consensus: -8).
That came alongside a sharp rise in a gauge for domestic prices as a result of weakness in the pound.
Mining stocks power gains
Mining stocks were the standout gainers as metals prices rallied with Anglo American, BHP Billiton, Antofagasta and Rio Tinto the top risers.
In corporate news, shares in Hikma Pharmaceuticals rose after it signed a development and licensing agreement with Vectura for its generic salmeterol product (VR730) for the treatment of asthma and chronic obstructive pulmonary disease.
AstraZeneca edged higher after it said it would resume enrolment for a new cancer drug trial after the US Food and Drug Administration lifted a partial clinical hold on the enrolment of new patients with head and neck cancer.
International distribution and outsourcing group Bunzl ticked just a touch higher as it entered into agreements to buy two businesses in France and Denmark for an undisclosed sum.
Shares in Lloyds Banking Group were in the black as the UK government cut its stake in the bank to just under 8%.
Food services company Compass Group was on the back foot despite posting a rise in full-year pre-tax profit, while Kingfisher declined as the home improvement retailer said sales kept improving in the third quarter, but like-for-like sales growth slowed due to further softness in France.
On the FTSE 250, Homeserve was lower even after it reported a jump in first-half pre-tax profit, alongside shares in Mitchells & Butlers after the pub operator posted a drop in full-year profit and like-for-like sales.
Online electrical retailer AO World was also in the red despite swinging to a profit in the first half.
Entertainment One reported much weaker than expected first half profits of £24m (Numis: £37.5m), due to increased investment, and that its finance director had decided to step down with immediate effect.
Market Movers
FTSE 100 (UKX) 6,846.86 1.02%
FTSE 250 (MCX) 17,712.10 1.05%
techMARK (TASX) 3,316.44 0.61%
FTSE 100 - Risers
Anglo American (AAL) 1,178.50p 4.99%
Glencore (GLEN) 279.45p 4.21%
BHP Billiton (BLT) 1,319.50p 3.78%
Royal Bank of Scotland Group (RBS) 210.90p 3.59%
Old Mutual (OML) 192.30p 3.11%
Antofagasta (ANTO) 701.50p 2.93%
Persimmon (PSN) 1,798.00p 2.86%
Standard Life (SL.) 352.50p 2.83%
Ashtead Group (AHT) 1,459.00p 2.75%
Rio Tinto (RIO) 3,048.50p 2.66%
FTSE 100 - Fallers
Babcock International Group (BAB) 930.50p -6.10%
Compass Group (CPG) 1,336.00p -3.95%
Kingfisher (KGF) 355.40p -3.87%
Pearson (PSON) 765.50p -2.48%
Fresnillo (FRES) 1,312.00p -1.35%
Intertek Group (ITRK) 3,202.00p -1.29%
Randgold Resources Ltd. (RRS) 5,965.00p -0.67%
Royal Mail (RMG) 460.30p -0.52%
Diageo (DGE) 1,997.00p -0.40%
Shire Plc (SHP) 4,695.00p -0.36%
FTSE 250 - Risers
BGEO Group (BGEO) 3,113.00p 11.22%
Rotork (ROR) 221.00p 10.28%
Vedanta Resources (VED) 864.00p 7.53%
Mitie Group (MTO) 203.40p 7.05%
Evraz (EVR) 253.60p 5.45%
Inmarsat (ISAT) 732.00p 4.42%
Metro Bank (MTRO) 3,416.00p 4.15%
OneSavings Bank (OSB) 339.60p 3.76%
Paragon Group Of Companies (PAG) 359.10p 3.76%
RPC Group (RPC) 981.50p 3.75%
FTSE 250 - Fallers
Entertainment One Limited (ETO) 216.30p -12.00%
TalkTalk Telecom Group (TALK) 160.00p -6.43%
Mitchells & Butlers (MAB) 260.00p -4.94%
Acacia Mining (ACA) 425.70p -3.88%
Essentra (ESNT) 378.50p -3.76%
CYBG (CYBG) 284.40p -3.50%
Halma (HLMA) 987.00p -1.79%
AO World (AO.) 165.00p -1.79%
Softcat (SCT) 300.90p -1.54%
Greene King (GNK) 741.50p -1.53%