London midday: Stocks climb as investors eye Clinton presidency

London stocks edged higher on Tuesday as many analysts put Hillary Clinton as the likely victor of the US elections as voters headed to the polls.

The FTSE 100 climbed 0.06% to 6,811.30 points.

Americans began voting in the early hours of Tuesday morning in New Hampshire. The village of Dixville Notch was the first in the US to declare with Clinton coming out on top over her Republican rival Donald Trump.

Connor Campbell, financial analyst at Spreadex, said: “In terms of the election Clinton seems to have momentum on her side. She is the clear market favourite, has a 71.6% chance of victory according to star-statistician Nate Silver, and is at a Democrat to win binary spread of 76.9%-83.4% against her orangutan opponent’s 16.6%-23.1%.

“Of course, this was basically the situation for the Remain camp pre-referendum, and with that result, Leicester winning the Premier League and the Cubs taking the World Series 2016 has already proven its willingness to still a middle-finger up at sense and logic throughout the year.”

On this side of the pond, data from the Office for National Statistics showed UK manufacturing production rose 0.6% in September compared to a month ago, up from August’s 0.2% increase. Economists had expected a 0.4% increase.

In contrast, UK industrial production fell 0.4% in September for the second consecutive month, the ONS said, versus the consensus estimate for a flat reading.

"Looking ahead, the upbeat tone of the latest business surveys suggests that the manufacturing sector will sustain its recent strength in the final quarter," said Ruth Gregory, UK economist at Capital Economics.

"Indeed, the fall in the pound appears to be performing its role as a 'shock absorber' in the wake of the Brexit vote, by improving the competitiveness of domestic producers."

Separate data from the British Retail Consortium and KPMG showed UK like-for-like sales increased 1.7% in October, up from the 0.4% rise the month before.

Elsewhere, China exports and imports fell more than expected in October. Exports fell 7.3% from a year earlier while imports shrank 1.4%, according to official data. Economists had expected a 6% decline in exports and a 1% drop in imports. The trade surplus widened to $49.06bn in October from $41.99bn, missing forecasts of $51.70bn.

In company news, Marks & Spencer erased earlier gains as the retailer said first-half profits fell almost 19%, with new chief executive Steve Rowe announcing a £350m investment plan to close 113 stores in the UK and overseas markets to try and return the retailer to profitable growth.

Primark owner Associated British Foods rallied as it reported a rise in full-year revenue and profit.

On the downside, bank stocks were the top fallers after the Royal Bank of Scotland announced it was setting aside £400m to compensate up to 12,000 small business customers that it allegedly mistreated in the wake of the financial crisis.

Tobacco company Imperial Brands fell after it reported a drop in profit for the year to end of September, but said revenue rose and upped its dividend by 10%.

Market Movers

FTSE 100 (UKX) 6,811.30 0.06%
FTSE 250 (MCX) 17,423.37 -0.20%
techMARK (TASX) 3,307.36 0.17%

FTSE 100 - Risers

Associated British Foods (ABF) 2,615.00p 5.06%
Mediclinic International (MDC) 927.00p 2.21%
Randgold Resources Ltd. (RRS) 6,795.00p 1.80%
easyJet (EZJ) 1,012.00p 1.76%
BHP Billiton (BLT) 1,241.50p 1.64%
Hikma Pharmaceuticals (HIK) 1,664.00p 1.40%
Mondi (MNDI) 1,602.00p 1.39%
Centrica (CNA) 212.00p 1.39%
Informa (INF) 688.00p 1.25%
Hammerson (HMSO) 558.00p 1.09%

FTSE 100 - Fallers

Imperial Brands (IMB) 3,711.50p -2.41%
Marks & Spencer Group (MKS) 343.30p -1.63%
Persimmon (PSN) 1,662.00p -1.54%
Glencore (GLEN) 247.50p -1.47%
Royal Bank of Scotland Group (RBS) 183.80p -1.45%
HSBC Holdings (HSBA) 613.40p -1.43%
International Consolidated Airlines Group SA (CDI) (IAG) 439.20p -1.37%
Barratt Developments (BDEV) 456.40p -1.21%
Barclays (BARC) 183.20p -1.08%
Taylor Wimpey (TW.) 140.80p -1.05%

FTSE 250 - Risers

Evraz (EVR) 205.50p 3.68%
Atkins (WS) (ATK) 1,560.00p 2.03%
Hochschild Mining (HOC) 264.40p 1.34%
UDG Healthcare Public Limited Company (UDG) 674.00p 1.28%
SSP Group (SSPG) 342.00p 1.27%
Tullett Prebon (TLPR) 400.60p 1.26%
Electra Private Equity (ELTA) 4,473.00p 1.24%
AA (AA.) 259.70p 1.21%
Caledonia Investments (CLDN) 2,443.00p 1.16%
Electrocomponents (ECM) 365.90p 1.13%

FTSE 250 - Fallers

Jardine Lloyd Thompson Group (JLT) 984.50p -3.57%
Sports Direct International (SPD) 313.80p -3.45%
Paysafe Group (PAYS) 416.60p -3.16%
McCarthy & Stone (MCS) 168.90p -2.82%
Kier Group (KIE) 1,314.00p -2.38%
Restaurant Group (RTN) 359.50p -2.34%
Halfords Group (HFD) 335.40p -2.30%
JRP Group (JRP) 117.20p -2.25%
Rank Group (RNK) 196.00p -2.15%
Hastings Group Holdings (HSTG) 210.50p -2.09%