London open: FTSE rallies on positive Asian cues; Johnson faces no confidence vote

London stocks rose in early trade on Monday following a positive session in Asia, as traders returned to their desks after the long Platinum Jubilee weekend to news that Prime Minister Boris Johnson was facing a vote of no confidence.

At 0900 BST, the FTSE 100 was up 1.2% at 7,626.18, while sterling was 0.5% firmer against the dollar 1.2549 as it emerged that Conservative MPs will hold a vote of no confidence in Johnson later in the day.

The vote will take between 6pm and 8pm, said MP Graham Brady, who chairs the Conservative Party's obscure 1922 committee, which consists of all backbench lawmakers.

Johnson has come under increasing pressure after breaking Covid rules on gatherings and became the first prime minister to be found guilty of an offence while in office when he received a fine for illegally attending a party during pandemic restrictions.

Brady said he told Johnson on Sunday that the 15% threshold had been reached when at least 54 MPs submitted letters of no confidence in the PM.

Richard Hunter, head of markets at Interactive Investor, said UK equity markets had taken their cue from the more buoyant moves within Asian markets after an extended Jubilee holiday weekend.

"The FTSE 100 opened comfortably ahead, leaving it ahead by 2.9% in the year to date," he said. "Given the constituents of the index, the renewed strength of the oil price will have had an impact, but the gains were broadly based as the UK continues to be given serious consideration as the investment destination of choice in the current global environment."

In equity markets, oil giants BP and Shell gushed higher as oil prices rose.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: "The latest trigger to push up prices appears to have been Saudi Arabia’s decision to increase prices for its crude sales next month, despite the pledge by OPEC the oil cartel to increase production by 50% in July and August.

"With Western powers sending long range missiles to Ukraine, it underlines the entrenched state of the war which is adding to supply concerns in the market, particularly given the compromise deal which has been reached by the EU on a Russian oil embargo.

"Demand energy is expected to rebound in China with more Covid restrictions being lifted particularly in Beijing, and although a dramatic snap back in economic growth isn’t forecast, the recovery from lockdowns is likely to fuel worries about whether there will be enough oil supplies to meet appetite in the world economy."

Miners also gained as metals prices advanced, with Glencore, Antofagasta and Anglo American all in the black.

Melrose Industries was the standout gainer on the FTSE 100, however, after saying it had sold its Ergotron business to funds managed by The Sterling Group for $650m (£520m) in cash.

Elsewhere, iconic bootmaker Dr Martens racked up more strong gains, having rallied last week after lifting its revenue guidance.

Building materials group CRH was also up after agreeing to buy North American fencing and railing solutions provider Barrette in a $1.9bn deal.

Market Movers

FTSE 100 (UKX) 7,626.18 1.24%
FTSE 250 (MCX) 20,542.98 1.33%
techMARK (TASX) 4,406.64 0.52%

FTSE 100 - Risers

Melrose Industries (MRO) 138.70p 3.97%
Endeavour Mining (EDV) 1,875.00p 3.94%
Ashtead Group (AHT) 4,160.00p 3.71%
Prudential (PRU) 1,051.50p 3.29%
SSE (SSE) 1,815.50p 3.12%
Halma (HLMA) 2,247.00p 3.03%
Intermediate Capital Group (ICP) 1,585.00p 2.89%
Persimmon (PSN) 2,248.00p 2.88%
Coca-Cola HBC AG (CDI) (CCH) 1,751.50p 2.85%
Glencore (GLEN) 538.60p 2.85%

FTSE 100 - Fallers

AstraZeneca (AZN) 10,236.00p -1.97%
Vodafone Group (VOD) 125.08p -1.28%
BT Group (BT.A) 186.55p -0.56%
Aveva Group (AVV) 2,203.00p -0.54%
Standard Chartered (STAN) 629.40p -0.54%
Bunzl (BNZL) 2,797.00p -0.50%
Pershing Square Holdings Ltd NPV (PSH) 2,535.00p -0.20%
Hikma Pharmaceuticals (HIK) 1,670.00p -0.18%
Meggitt (MGGT) 774.60p -0.05%
Smith & Nephew (SN.) 1,269.00p 0.00%

FTSE 250 - Risers

Dr. Martens (DOCS) 278.00p 7.42%
Wood Group (John) (WG.) 238.80p 6.89%
Greencore Group (CDI) (GNC) 115.60p 5.38%
Bellevue Healthcare Trust (Red) (BBH) 156.60p 4.82%
Darktrace (DARK) 379.50p 4.37%
Blackrock Throgmorton Trust (THRG) 649.00p 4.34%
Henderson Smaller Companies Inv Trust (HSL) 949.00p 4.17%
Carnival (CCL) 1,008.50p 4.08%
Renishaw (RSW) 4,204.00p 3.85%
Helios Towers (HTWS) 122.40p 3.73%

FTSE 250 - Fallers

Schroder Oriental Income Fund Ltd. (SOI) 263.50p -1.86%
Grainger (GRI) 307.00p -1.85%
Ultra Electronics Holdings (ULE) 3,166.00p -1.68%
Big Yellow Group (BYG) 1,303.00p -0.91%
Safestore Holdings (SAFE) 1,108.00p -0.89%
Wizz Air Holdings (WIZZ) 2,837.00p -0.60%
Pets at Home Group (PETS) 337.40p -0.41%
Vietnam Enterprise Investments (DI) (VEIL) 696.00p -0.29%
Unite Group (UTG) 1,122.00p -0.27%
SDCL Energy Efficiency Income Trust (SEIT) 120.40p -0.17%