London open: FTSE gains as attention turns to US bank earnings

London stocks rose in early trade on Friday as investors turned their attention to the US, where banks are due to kick off the earnings season.

At 0825 BST, the FTSE 100 was up 0.5% at 8,266.45.

Richard Hunter, head of markets at Interactive Investor, said: "The latest inflation reading in the US provided a pleasant surprise which resulted in investors flocking to interest rate sensitive stocks and smaller companies.

"The scene is now set for further potential confirmation with the release of producer price index data later today. At the same time, banks such as JP Morgan Chase, Wells Fargo and Citigroup will report quarterly earnings which could also confirm whether any cracks are beginning to appear in the face of higher interest rates, most notably with regard to consumer debt default levels.

"Consumers have also been hamstrung by higher rates when considering large ticket purchases in anything from houses to cars, as well as loading up on credit card debts."

The US producer price index for June is scheduled for release at 1330 BST, while Michigan consumer sentiment is at 1500 BST.

UK corporate news was scarce, but Ashmore lost ground as it said assets under management declined in the last quarter on the back of weaker investor sentiment.

The FTSE 250 firm, a specialist in emerging markets, said AUM fell by $2.4bn in fourth quarter to 30 June to $49.5bn.

Within that, the negative investment performance was $0.4bn while net outflows were $2bn, unchanged on the previous quarter.

Ashmore attributed the level of net outflows to institutional decisions to reduce exposure to emerging markets, with investor risk appetite remaining "subdued".

Market Movers

FTSE 100 (UKX) 8,266.45 0.52%
FTSE 250 (MCX) 21,191.88 0.01%
techMARK (TASX) 4,845.25 0.39%

FTSE 100 - Risers

Smurfit Westrock (DI) (SWR) 3,596.00p 2.10%
Flutter Entertainment (DI) (FLTR) 15,945.00p 1.92%
Rightmove (RMV) 569.20p 1.68%
Standard Chartered (STAN) 731.40p 1.67%
GSK (GSK) 1,528.50p 1.56%
Entain (ENT) 677.60p 1.50%
AstraZeneca (AZN) 12,276.00p 1.45%
Barratt Developments (BDEV) 502.20p 1.43%
CRH (CDI) (CRH) 6,170.00p 1.28%
Smith & Nephew (SN.) 1,103.50p 1.15%

FTSE 100 - Fallers

International Consolidated Airlines Group SA (CDI) (IAG) 176.60p -0.73%
Rolls-Royce Holdings (RR.) 450.60p -0.57%
Fresnillo (FRES) 621.50p -0.56%
Ashtead Group (AHT) 5,150.00p -0.39%
Diageo (DGE) 2,538.00p -0.31%
Scottish Mortgage Inv Trust (SMT) 902.40p -0.27%
Halma (HLMA) 2,661.00p -0.22%
Beazley (BEZ) 678.50p -0.22%
Diploma (DPLM) 4,250.00p -0.19%
United Utilities Group (UU.) 1,092.00p -0.18%

FTSE 250 - Risers

IP Group (IPO) 45.55p 7.30%
Dr. Martens (DOCS) 77.80p 3.94%
Zigup (ZIG) 436.50p 3.19%
Playtech (PTEC) 530.00p 2.32%
Indivior (INDV) 862.50p 2.31%
CMC Markets (CMCX) 330.00p 2.17%
Redrow (RDW) 711.50p 1.86%
Crest Nicholson Holdings (CRST) 255.40p 1.83%
Watches of Switzerland Group (WOSG) 417.60p 1.80%
Kier Group (KIE) 154.00p 1.72%

FTSE 250 - Fallers

Spirent Communications (SPT) 173.30p -4.25%
Auction Technology Group (ATG) 475.00p -3.65%
Moonpig Group (MOON) 191.80p -3.33%
Hammerson (HMSO) 28.60p -2.85%
C&C Group (CDI) (CCR) 160.60p -2.31%
Morgan Advanced Materials (MGAM) 322.50p -2.27%
Bellevue Healthcare Trust (Red) (BBH) 141.20p -2.22%
Hays (HAS) 92.15p -2.12%
Ashmore Group (ASHM) 176.40p -2.05%
PureTech Health (PRTC) 178.60p -1.98%