London open: FTSE opens on front foot on ECB stimulus hopes

The FTSE opened on the front foot on Friday after European Central Bank president Mario Draghi left the door open to further stimulus.

Draghi said the ECB would re-examine its €60bn a month asset purchase programme in December, noting that falling commodity prices and concerns about emerging markets meant inflation pressures remained negative.

During a press conference on Thursday after the ECB announced it was keeping policy unchanged, Draghi also revealed that the central bank had 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".

In another lift to markets, a leading economic index for China surged in September. 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. However, the coincident index slid 1.2% after rising 0.7% in August and 1% in July.

On a less positive note, Germany’s manufacturing sector expanded at its lowest pace in five months in October. The latest Markit Purchasing Managers’ Index showed the factory index declined from 52.3 in September to 51.6, slightly below the 51.7 reading analysts had forecast. A reading above 50, however, signals an expansion in sector activity.

Eurozone manufacturing PMI held at 52 in October compared to a month ago, beating expectations for a reading of 51.7.

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

In company news, 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.

Glencore was a high riser as its Nickel Rim South mine in Sudbury resumed operations following a fatality.

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.

TalkTalk was also 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.

Market Movers

FTSE 100 (UKX) 6,427.68 0.81%
FTSE 250 (MCX) 17,131.75 0.51%
techMARK (TASX) 3,086.76 0.76%

FTSE 100 - Risers

CRH (CRH) 1,830.00p 2.64%
Glencore (GLEN) 119.90p 2.39%
GKN (GKN) 293.90p 2.23%
Travis Perkins (TPK) 1,884.00p 2.11%
Wolseley (WOS) 3,806.00p 2.04%
Schroders (SDR) 2,905.00p 1.86%
Burberry Group (BRBY) 1,323.00p 1.85%
Ashtead Group (AHT) 1,005.00p 1.82%
Rolls-Royce Holdings (RR.) 681.50p 1.72%
Aberdeen Asset Management (ADN) 343.20p 1.66%

FTSE 100 - Fallers

Pearson (PSON) 913.50p -3.84%
TUI AG Reg Shs (DI) (TUI) 1,183.00p -2.63%
Standard Chartered (STAN) 737.40p -0.22%
Direct Line Insurance Group (DLG) 389.20p -0.13%
Next (NXT) 7,920.00p 0.00%
Shire Plc (SHP) 4,448.00p 0.07%
Imperial Tobacco Group (IMT) 3,520.00p 0.20%
Sainsbury (J) (SBRY) 266.40p 0.23%
Sports Direct International (SPD) 663.50p 0.23%
G4S (GFS) 246.00p 0.24%

FTSE 250 - Risers

Cable & Wireless Communications (CWC) 75.70p 8.14%
Carillion (CLLN) 313.80p 4.53%
Man Group (EMG) 165.30p 3.64%
AA (AA.) 272.00p 3.62%
Premier Oil (PMO) 80.25p 3.55%
Vedanta Resources (VED) 514.50p 3.38%
Dechra Pharmaceuticals (DPH) 977.00p 2.79%
Kaz Minerals (KAZ) 126.70p 2.76%
Henderson Group (HGG) 276.20p 2.37%
Ocado Group (OCDO) 354.40p 2.25%

FTSE 250 - Fallers

TalkTalk Telecom Group (TALK) 246.80p -8.08%
William Hill (WMH) 327.30p -5.24%
Micro Focus International (MCRO) 1,174.00p -4.63%
SIG (SHI) 137.40p -2.90%
Circassia Pharmaceuticals (CIR) 275.60p -1.96%
Rank Group (RNK) 273.70p -1.83%
Acacia Mining (ACA) 202.30p -1.80%
Grafton Group Units (GFTU) 651.00p -1.59%
Spire Healthcare Group (SPI) 377.50p -1.44%
Shawbrook Group (SHAW) 328.40p -1.11%