London midday: Stocks gain on hopes of ECB stimulus, Eurozone PMI

London stocks gained on Friday on hopes of further stimulus from the European Central Bank and better-than-expected Eurozone manufacturing data.

ECB president Mario Draghi on Thursday said policymakers would re-examine its €60bn a month asset purchase programme in December and consider extending it past September 2016 if needed.

During a press conference on Thursday after the ECB announced it was keeping policy unchanged, Draghi noted that falling commodity prices and concerns about emerging markets meant inflation pressures remained negative.

He revealed that the central bank had also discussed furthering lowering the deposit rate and interest rates. Although Draghi said there was "no specific preference to one instrument or the other, they were all considered".

On another positive note for equities, Markit revealed the Eurozone manufacturing purchasing managers’ index held at 52 in October compared to a month ago, beating expectations for a reading of 51.7. A reading above 50 signals expansion in sector activity.

However, Germany’s manufacturing PMI declined from 52.3 in September to 51.6, slightly below the 51.7 reading analysts had forecast.

In China, the latest survey from the Conference Board showed its index rose 1.6% month-on-month in September compared with a 1% gain in August and a 0.9% climb in July. The coincident index slid 1.2% after rising 0.7% in August and 1% in July.

Looking ahead, Markit will release its manufacturing PMI on the US at 1445 BST.

On the company front, TalkTalk was under pressure after saying a criminal investigation was launched by the Metropolitan Police cyber crime unit on Thursday following a “significant and sustained” cyberattack on the company’s website

Pearson slipped after Exane BNP Paribas downgraded the stock to ‘neutral’ from ‘outperform’ and cut the price target to 1,000p.

William Hill slumped after the bookie warned that full-year operating profit will come in at the bottom end of analysts’ forecasts as a result of additional taxes on the gambling industry and a tough comparison with last year.

Telecity gained after the European Commission said it has begun a period of market testing for the proposed takeover by Equinix.

Entertainment One climbed after completing the acquisition of a 70% stake in Peppa Pig creator and producer Astley Baker Davies Limited for £140.

Dechra Pharmaceuticals jumped as it posted a strong first quarter update, with a substantial increase in revenue.

Market Movers

FTSE 100 (UKX) 6,447.16 1.11%
FTSE 250 (MCX) 17,168.96 0.73%
techMARK (TASX) 3,104.35 1.34%

FTSE 100 - Risers

Aberdeen Asset Management (ADN) 349.10p 3.41%
GKN (GKN) 296.60p 3.17%
Schroders (SDR) 2,941.00p 3.12%
WPP (WPP) 1,463.00p 3.10%
Travis Perkins (TPK) 1,902.00p 3.09%
Ashtead Group (AHT) 1,017.00p 3.04%
ARM Holdings (ARM) 1,068.00p 2.99%
CRH (CRH) 1,835.00p 2.92%
Dixons Carphone (DC.) 455.00p 2.87%
easyJet (EZJ) 1,769.00p 2.85%

FTSE 100 - Fallers

Pearson (PSON) 913.50p -3.84%
TUI AG Reg Shs (DI) (TUI) 1,210.00p -0.41%
Royal Mail (RMG) 444.10p -0.34%
Anglo American (AAL) 595.00p -0.32%
Morrison (Wm) Supermarkets (MRW) 175.00p -0.23%
Sage Group (SGE) 542.00p -0.09%
Imperial Tobacco Group (IMT) 3,511.00p -0.06%
Reckitt Benckiser Group (RB.) 6,307.00p -0.05%
Standard Chartered (STAN) 738.70p -0.04%
Rio Tinto (RIO) 2,468.00p -0.02%

FTSE 250 - Risers

Cable & Wireless Communications (CWC) 76.60p 9.43%
Kaz Minerals (KAZ) 132.00p 7.06%
AA (AA.) 274.40p 4.53%
Carillion (CLLN) 313.20p 4.33%
Ocado Group (OCDO) 360.30p 3.95%
Man Group (EMG) 165.80p 3.95%
Debenhams (DEB) 87.00p 3.82%
Henderson Group (HGG) 279.40p 3.56%
Inchcape (INCH) 814.00p 3.37%
Telecity Group (TCY) 1,168.00p 3.09%

FTSE 250 - Fallers

William Hill (WMH) 323.00p -6.49%
TalkTalk Telecom Group (TALK) 252.50p -5.96%
Micro Focus International (MCRO) 1,168.00p -5.12%
Circassia Pharmaceuticals (CIR) 270.70p -3.70%
SIG (SHI) 137.40p -2.90%
Indivior (INDV) 207.50p -2.58%
Cineworld Group (CINE) 580.50p -2.44%
Tullett Prebon (TLPR) 341.00p -2.01%
Crest Nicholson Holdings (CRST) 536.50p -1.65%
Rank Group (RNK) 274.30p -1.61%