London open: Global banks lead early gains, Aveva rockets

Risk appetite in markets was muted but positive in early trading as traders' eyes turned again towards Greece given the dearth of economic data due out on Monday.

Greek banks reopened their doors and limits on cash withdrawals were relaxed slightly as the country prepared to pay back €3.5bn owed to the European Central Bank and falling due later today. The stockmarket however remained closed.

Ordinary Greeks will need the extra cash to pay for the increase in value added tax which was also set to to go in effect today, from 13% to 23% on items such as taxis and restaurant meals. In the mind of some, the harshness of such measures underline the need for the Eurozone not to be excessively ambitious in the pace of reforms asked of the country – given that maintaining political stability in the medium-term will be key. On 17 July Barclays estimated the country's GDP would shrink by 1.6% this year and 1.0% next.

As of 08:30 the Footsie was trading points 9.16 points higher to 6,784.24.

That came as German Chancellor Angela Merkel said overnight she is open to extending the maturity of Greek debt and lowering the interest the country pays on the same. However, speaking to ADR TV she was clear that debt write-downs could not be fathomed.

Acting as a backdrop, gold dropped sharply lower as markets continued to shift their attention away from events in China and Greece and back towards central banks and corporate earnings, particularly Stateside.

Economists' expectations for interest rates hikes in the UK and US have grown in recent weeks on the back of more hawkish rhetoric from central bankers. In parallel, long-term interest rates have been on the rise even as inflationary pressures remain muted and geopolitical risks arguably decline following the nuclear deal reached with Iran.

As of 0845 BST gold futures for August delivery on COMEX were at $1,114 per ounce, after trading closer to $1,100 earlier in the session, down by more than 2% from Friday's close of $1,131.40.

Data showing lower gold reserves in China were another factor weighing on the price of the yellow metal.

The Shanghai stock exchange's benchmark index finished the session up by 0.88% to reach 3,992.11 points. That followed some weakness at the intraday level, with some market commentary highlighting a move by Beijing to curb internet financing over the weekend.

If you cant beat'em, buy'em: Aveva rockets on M&A

Shares in Aveva were up by more than a quarter after engineering design firm Schneider Electric said it would acquire the firm in a reverse takeover deal, beating out rumoured rivals Emerson and General Electric.

Barclays is reportedly planning to cut more than 30,000 jobs in the next two years, just days after the bank ousted chief executive Antony Jenkins. According to sources cited by the Times on Sunday, the cuts – which are seen as the only way to address the bank’s underperformance and lift its share price – could take the bank’s global workforce to below 100,000 by the end of 2017.

Tullow Oil said gas export from the Jubilee Field to the Ghana Gas plant at Atuabo has been suspended since 3 July due to technical issues and is expected to resume mid-August.

Aerospace and defence company Rolls-Royce announced two new deals worth more $2.23bn. The company has been selected by SAUDIA, the national carrier of Saudi Arabia to provide long-term TotalCare engine service support worth $1.3bn for Airbus A330 Regional aircraft. It's also been selected by International AirFinance Corporation to provide Trent 700 engines worth $930m for 20 Airbus A330 Regional aircraft.

Standard Chartered has announced a radical management shake-up designed to restore the fortunes of the bank.
Under the new regime, chief executive Bill Winters will take more responsibility as all heads of business units will report to him not his deputy Mike Rees, the bank said in an announcement. The restructure formed part of a previously announced goal of $1.8b in savings by the end of 2017.

British Land said it has had a good start to the year, with strong occupational demand and lettings well ahead of estimated market rental value. In its first-quarter trading update, the company said its Leadenhall Building, also known as the Cheesegrater, is now 90% full, with 107,000 square feet of new lettings and 52,000 square feet under offer.

Market Movers
techMARK 3,211.80 +0.60%
FTSE 100 6,788.52 +0.20%
FTSE 250 17,785.71 +0.17%

FTSE 100 - Risers
Standard Chartered (STAN) 1,028.00p +1.08%
HSBC Holdings (HSBA) 586.10p +1.02%
TUI AG Reg Shs (DI) (TUI) 1,113.00p +1.00%
Sage Group (SGE) 535.50p +0.94%
AstraZeneca (AZN) 4,355.50p +0.94%
Royal Dutch Shell 'B' (RDSB) 1,843.50p +0.77%
Sports Direct International (SPD) 752.50p +0.74%
Royal Dutch Shell 'A' (RDSA) 1,827.00p +0.72%
Dixons Carphone (DC.) 465.40p +0.69%
Shire Plc (SHP) 5,520.00p +0.64%

FTSE 100 - Fallers
Randgold Resources Ltd. (RRS) 3,909.00p -2.37%
Fresnillo (FRES) 642.50p -2.36%
Antofagasta (ANTO) 644.50p -1.00%
Smiths Group (SMIN) 1,148.00p -0.95%
Direct Line Insurance Group (DLG) 356.30p -0.83%
Royal Mail (RMG) 504.50p -0.79%
Anglo American (AAL) 870.80p -0.75%
BHP Billiton (BLT) 1,236.50p -0.68%
Glencore (GLEN) 241.50p -0.66%
Aviva (AV.) 532.00p -0.65%

FTSE 250 - Risers
Aveva Group (AVV) 2,257.00p +27.37%
Just Eat (JE.) 459.80p +5.00%
Aggreko (AGK) 1,505.00p +2.10%
Clarkson (CKN) 2,700.00p +1.96%
Evraz (EVR) 119.10p +1.79%
Bwin.party Digital Entertainment (BPTY) 105.80p +1.73%
Ladbrokes (LAD) 129.90p +1.72%
Virgin Money Holdings (UK) (VM.) 394.00p +1.60%
OneSavings Bank (OSB) 297.50p +1.54%
Diploma (DPLM) 782.00p +1.43%

FTSE 250 - Fallers
Acacia Mining (ACA) 266.00p -3.97%
Centamin (DI) (CEY) 56.70p -3.82%
IP Group (IPO) 195.00p -3.70%
Lonmin (LMI) 78.65p -3.14%
Homeserve (HSV) 426.90p -2.72%
Shawbrook Group (SHAW) 331.20p -1.66%
Rathbone Brothers (RAT) 2,147.64p -1.44%
Synergy Health (SYR) 1,768.00p -1.39%
Nostrum Oil & Gas (NOG) 565.50p -1.31%
Tullow Oil (TLW) 278.20p -1.21%