London open: FTSE rises amid Ukraine summit hopes

London stocks rose in early trade on Monday, with investors hopeful of a resolution to the Russia-Ukraine crisis.

At 0850 GMT, the FTSE 100 was up 0.7% at 7,564.24, after US President Biden agreed in principle to hold a summit with Russian president Putin over Ukraine.

Victoria Scholar, head of investment at Interactive Investor, said: "European markets are attempting to claw back from Friday’s declines when risk-off sentiment sent Wall Street lower with the tech-heavy Nasdaq sharply under pressure. Optimism towards a possible breakthrough between Russia and Ukraine have bolstered autos, construction, and travel & leisure at the open. The FTSE 100 is making gains but lagging behind the DAX in Germany which is outperforming in Europe.

"The FTSE 100 is holding firm above critical round number support at 7,500 amid easing geopolitical tensions between Russia and Ukraine as the market anticipates a further de-escalation in the days ahead. The Russian mining company Evraz, which has been highly sensitive to Russia Ukraine developments, has jumped to the top of the UK index, attempting to regain some lost ground after last week’s declines. Safe havens assets such as the Japanese yen and gold are pulling back, having caught a bid last week sparked by fears of a potential military conflict."

On home shores, investors will be eyeing Markit’s services and manufacturing PMIs for February, due at 0930 GMT.

In equity markets, commercial property landlord Hammerson gained after confirming it was in talks over the possible sale of its Victoria Gate and Victoria Quarter shopping centres for £120m as it looked to strengthen its balance sheet after the Covid-pandemic.

Dechra Pharmaceuticals was also in the black after it lifted its dividend and posted a jump in first-half profit and revenue.

Outside the FTSE 350, deal news was in focus, with Clopper Logistics up sharply after saying it had agreed to be taken over by US rival GXO in a £943m deal.

John Menzies was also in the spotlight again after Kuwait's National Aviation Services sweetened its takeover proposal for the UK airport services company, valuing it at about £559m.

Market Movers

FTSE 100 (UKX) 7,562.32 0.65%
FTSE 250 (MCX) 21,404.21 0.19%
techMARK (TASX) 4,339.87 0.51%

FTSE 100 - Risers

Evraz (EVR) 292.00p 3.11%
International Consolidated Airlines Group SA (CDI) (IAG) 165.42p 2.41%
Flutter Entertainment (CDI) (FLTR) 10,715.00p 1.76%
Rolls-Royce Holdings (RR.) 119.04p 1.69%
Rio Tinto (RIO) 5,751.00p 1.66%
Prudential (PRU) 1,177.50p 1.55%
AstraZeneca (AZN) 8,934.00p 1.51%
HSBC Holdings (HSBA) 552.30p 1.45%
Informa (INF) 609.60p 1.43%
Anglo American (AAL) 3,576.00p 1.42%

FTSE 100 - Fallers

Polymetal International (POLY) 1,152.00p -1.50%
Scottish Mortgage Inv Trust (SMT) 1,006.00p -0.89%
Ashtead Group (AHT) 4,747.00p -0.65%
Imperial Brands (IMB) 1,772.00p -0.39%
Avast (AVST) 620.80p -0.35%
Airtel Africa (AAF) 153.50p -0.26%
JD Sports Fashion (JD.) 165.40p -0.18%
Severn Trent (SVT) 2,846.00p -0.18%
BT Group (BT.A) 197.10p -0.13%
Fresnillo (FRES) 685.00p -0.12%

FTSE 250 - Risers

JTC (JTC) 787.00p 5.78%
Petershill Partners (PHLL) 204.50p 4.98%
Darktrace (DARK) 340.00p 4.94%
Wizz Air Holdings (WIZZ) 4,206.00p 3.06%
LXI Reit (LXI) 140.00p 2.94%
Baillie Gifford Japan Trust (BGFD) 854.00p 2.40%
Herald Investment Trust (HRI) 2,005.00p 2.30%
Chrysalis Investments Limited NPV (CHRY) 182.00p 2.25%
Syncona Limited NPV (SYNC) 193.00p 2.12%
Indivior (INDV) 277.20p 1.84%

FTSE 250 - Fallers

Petropavlovsk (POG) 15.25p -4.57%
Playtech (PTEC) 654.00p -2.53%
Discoverie Group (DSCV) 803.00p -2.31%
Trustpilot Group (TRST) 140.20p -2.30%
TBC Bank Group (TBCG) 1,470.00p -2.00%
Micro Focus International (MCRO) 400.20p -1.96%
Aston Martin Lagonda Global Holdings (AML) 1,097.00p -1.83%
Helios Towers (HTWS) 147.00p -1.34%
Endeavour Mining (EDV) 1,870.00p -1.32%
4Imprint Group (FOUR) 2,665.00p -1.30%