London open: UK stocks attempt to rebound after recent falls

UK stock markets recovered slightly on Friday morning as investors looked for bargains in the aftermath of recent volatility, which sent equities to a 16-month low the previous session

London's FTSE 100 index was up 0.7% at 6,242 in early deals. Rolls-Royce and Travis Perkins were both trading in the red after poorly-received trading updates, but oil and gas stocks were leading the upside as Brent crude prices bounced off a four-year low.

The FTSE 100 finished just 0.3% lower at 6,195.91 on Thursday, having wiped out most of its earlier losses which sent it to an intraday low of 6,072.68 earlier in the session - a level not seen since June 2013.

Friday's positive start follows a "strong reversal of sentiment in the US", according to dealer Jonathan Sudaria from Capital Spreads, after Wall Street indices managed to finish flat despite a weak start.

Comments from Federal Reserve official James Bullard had prompted a turnaround on the markets Stateside after he suggested that policymakers could delay the end of their bond-buying programme following a recent drop in inflation expectations.

"The suggestion of further financial first aid were welcome words for the bruised and battered markets, particularly from one of the Feds most hawkish members," Sudaria said.

The focus also was on monetary policy here in the Britain after the Bank of England's chief economist Andy Haldane said he was "gloomier" on the UK's economic outlook and that interest rates will likely remain at their record-low level of 0.5% for a little while longer. The comments came after UK inflation dropped to a five-year low of 1.2% in September, according to data out earlier this week.

Rolls-Royce and Travis Perkins fall, oil stocks rise

Power systems giant Rolls-Royce saw shares fall 8% after saying it now expects underlying sales to fall 3.5-4% this year on the back of worsening trading conditions, compared with its previous forecast for flat revenues. It also warned that growth might not return in 2015, as previously expected, with underlying revenue guidance for next year now at +/-3%.

UK building merchant Travis Perkins was also trading lower after reporting that like-for-like sales continued to slow in the third quarter as it saw a "very challenging" plumbing and heating market.

Oil and gas peers Tullow, BP, Shell, Afren, Enquest and Premier Oil were all making gains, rebounding after being hammered by a drop in oil prices the previous session.

Oilfield services group Petrofac was also in positive territory after saying it is on track to hit profit targets this year, as its backlog improved over the third quarter and net debt reduced.

Market Movers
techMARK 2,607.83 +0.88%
FTSE 100 6,241.76 +0.74%
FTSE 250 14,654.61 +1.21%

FTSE 100 - Risers
Tullow Oil (TLW) 501.50p +3.64%
Hargreaves Lansdown (HL.) 897.00p +2.99%
Petrofac Ltd. (PFC) 1,017.00p +2.99%
Smith & Nephew (SN.) 932.50p +2.92%
Sports Direct International (SPD) 591.50p +2.87%
Royal Mail (RMG) 423.60p +2.67%
Aviva (AV.) 488.50p +2.60%
Royal Dutch Shell 'A' (RDSA) 2,117.50p +2.49%
IMI (IMI) 1,195.00p +2.40%
Weir Group (WEIR) 2,206.00p +2.37%

FTSE 100 - Fallers
Rolls-Royce Holdings (RR.) 864.50p -8.08%
Randgold Resources Ltd. (RRS) 4,320.00p -1.37%
Travis Perkins (TPK) 1,616.00p -1.28%
Fresnillo (FRES) 808.00p -0.86%
AstraZeneca (AZN) 4,188.50p -0.86%
Diageo (DGE) 1,703.00p -0.79%
Direct Line Insurance Group (DLG) 263.10p -0.49%
Tesco (TSCO) 171.55p -0.26%
Pearson (PSON) 1,130.00p -0.18%
SABMiller (SAB) 3,152.00p -0.13%

FTSE 250 - Risers
Afren (AFR) 98.15p +5.25%
Aveva Group (AVV) 1,467.00p +4.64%
EnQuest (ENQ) 76.05p +4.61%
Ophir Energy (OPHR) 189.50p +4.06%
Cairn Energy (CNE) 161.00p +3.87%
Man Group (EMG) 115.90p +3.76%
Tullett Prebon (TLPR) 264.80p +3.72%
Bodycote (BOY) 597.00p +3.65%
Ferrexpo (FXPO) 88.00p +3.53%
Brit (BRIT) 234.00p +3.08%

FTSE 250 - Fallers
Pets at Home Group (PETS) 167.60p -1.41%
Redefine International (RDI) 49.17p -1.28%
Hochschild Mining (HOC) 119.00p -1.24%
Synergy Health (SYR) 1,753.00p -1.24%
Fidessa Group (FDSA) 2,165.00p -1.05%
Ted Baker (TED) 1,851.00p -0.80%
Zoopla Property Group (WI) (ZPLA) 200.00p -0.55%
F&C Commercial Property Trust Ltd. (FCPT) 123.90p -0.48%
PZ Cussons (PZC) 351.00p -0.40%
Bwin.party Digital Entertainment (BPTY) 87.75p -0.40%