London open: Miners, energy shares lead FTSE higher

London stocks rose in early trade on Wednesday, helped along by a strong showing in the energy and mining sectors, as investors eyed the release of the minutes from the latest Federal Reserve meeting.

At 0845 BST, the FTSE 100 was up 0.5% at 7,138.69.

Russ Mould, investment director at AJ Bell, said: "A positive update from Royal Dutch Shell and oil prices touching six-year highs contributed to gains for these index heavyweights and helped outweigh any fears over the inflationary pressures the recent spike in commodity prices may create.

"This might change if meeting minutes from the US Federal Reserve, published this evening, sound the alarm on inflation."

Shell gushed higher as the oil giant said it plans to boost shareholder returns following a strong second quarter.

Miners BHP, Rio Tinto and Antofagasta were all up as copper and iron ore prices rose.

Redrow rallied after the housebuilder said it expected 2022 revenues to exceed £2bn, driven by a strong order book and completion of a private rental sector project in London.

Peer Vistry also advanced after it expressed confidence in meeting consensus market expectations for FY21 following a "significantly" better-than-expected first half amid strong demand across all business areas.

PageGroup was in the black as the recruiter lifted its 2021 guidance, while specialist engineering group Renishaw was up after it abandoned plans for a potential sale and said it finished the year to 30 June with a "record" order book.

Countryside Properties after saying it will focus all of its resources on the Partnerships business "to maximise shareholder value".

On the downside, 888 Holdings was weaker even as it said it expects adjusted annual core profit to be slightly higher despite higher costs and regulatory changes.

Private hospital operator Spire Healthcare fell as it adjourned a court meeting and general meeting to 19 July after shareholders Fidelity International and Toscafund Asset Management reportedly rejected a final, improved takeover offer from Australia’s Ramsay Health Care. Spire said it was adjourning the meetings after "a number of investors" requested "a short extension to the process to allow them to exercise voting rights".

Pub chain Wetherspoons edged down after saying it still expects to make a full-year loss as like-for-like sales have continued to fall despite easing Covid restrictions.

Market Movers

FTSE 100 (UKX) 7,138.69 0.53%
FTSE 250 (MCX) 22,987.49 0.40%
techMARK (TASX) 4,491.83 0.14%

FTSE 100 - Risers

Royal Dutch Shell 'B' (RDSB) 1,454.80p 2.34%
Royal Dutch Shell 'A' (RDSA) 1,492.60p 2.29%
BHP Group (BHP) 2,181.00p 2.23%
Rio Tinto (RIO) 5,997.00p 1.90%
Antofagasta (ANTO) 1,429.50p 1.78%
BP (BP.) 316.05p 1.69%
Johnson Matthey (JMAT) 3,082.00p 1.52%
British Land Company (BLND) 508.60p 1.48%
Evraz (EVR) 595.00p 1.43%
Glencore (GLEN) 314.30p 1.39%

FTSE 100 - Fallers

Informa (INF) 529.80p -1.08%
Entain (ENT) 1,853.00p -0.88%
Ocado Group (OCDO) 1,888.50p -0.68%
M&G (MNG) 228.40p -0.65%
AstraZeneca (AZN) 8,669.00p -0.60%
Avast (AVST) 499.10p -0.58%
Tesco (TSCO) 233.15p -0.47%
Royal Mail (RMG) 571.60p -0.42%
Flutter Entertainment (CDI) (FLTR) 13,585.00p -0.33%
Unilever (ULVR) 4,281.00p -0.26%

FTSE 250 - Risers

Redrow (RDW) 660.20p 4.89%
Pagegroup (PAGE) 597.00p 3.74%
Volution Group (FAN) 445.00p 3.37%
Tullow Oil (TLW) 59.28p 3.13%
Countryside Properties (CSP) 512.50p 3.04%
QinetiQ Group (QQ.) 355.80p 2.65%
Capital & Counties Properties (CAPC) 170.90p 2.46%
Fidelity European Trust (FEV) 312.50p 2.29%
Hochschild Mining (HOC) 164.90p 2.11%
Network International Holdings (NETW) 378.90p 1.94%

FTSE 250 - Fallers

Spire Healthcare Group (SPI) 231.50p -2.73%
TI Fluid Systems (TIFS) 307.50p -2.38%
888 Holdings (888) 403.80p -2.23%
Renishaw (RSW) 4,982.00p -1.83%
Carnival (CCL) 1,633.00p -1.20%
Syncona Limited NPV (SYNC) 210.00p -0.94%
Vivo Energy (VVO) 99.80p -0.60%
PZ Cussons (PZC) 257.50p -0.58%
Lancashire Holdings Limited (LRE) 613.50p -0.41%
Plus500 Ltd (DI) (PLUS) 1,363.50p -0.37%