London open: Miners, energy shares pace gains as stocks rally

London stocks rose in early trade on Monday, boosted by strength in the energy and mining sectors, amid optimism over lockdown easing and after the US Federal Reserve chair hinted at more ammunition to combat the fallout from the Covid-19 pandemic.

At 0840 BST, the FTSE 100 was up 2.3% at 5,932.81.

Spreadex analyst Connor Campbell said: "This week got off to a better start, thanks to one Jerome Powell. When asked if the Federal Reserve has done all it can do in an interview for 60 Minutes, Powell stated that ‘there’s a lot more we can do...we’re not out of ammunition by a long shot. No, there’s really no limit to what we can do with these lending programs that we have’. This went some way to reversing the losses Powell provoked last week, when the Fed chair appeared to take negative interest rates off the table.

"Giddy at the thought of some more monetary juice being pumped into the markets, European investors woke up with a spring in their step."

Still, Campbell said the FTSE "may need an extra helping hand" if it is to return to last week’s "Sunak-assisted 6,000-plus highs".

In equity markets, oil giants BP and Shell gushed higher, with oil prices up as lockdown eases and supply tightens. West Texas Intermediate was 4.7% firmer at $30.81 a barrel and Brent crude was 4.3% higher at $33.90.

Miners were also on the rise, with Anglo American, Glencore, BHP and Rio all higher.

British Airways and Iberia parent IAG was on the front foot, along with cruise operator Carnival and travel company TUI.

Hochschild Mining surged after saying it was restarting operations at its Inmaculada and Pallancata mines in Peru and expected to reissue full-year guidance once it hit full production and the overall impact of coronavirus suspensions was clear.

Mitchells & Butlers rallied as the pub chain said the waiver agreed with its lenders to avoid a breach of its financing terms had been extended for three weeks.

Centamin shone as the gold miner reiterated its financial guidance for the current year after the rising price of gold helped push annual profit up by 13%.

On the downside, Ocado lost ground on news that German discounter Aldi will trial grocery home delivery with Deliveroo.

Market Movers

FTSE 100 (UKX) 5,932.81 2.29%
FTSE 250 (MCX) 16,027.27 2.34%
techMARK (TASX) 3,648.95 1.99%

FTSE 100 - Risers

Fresnillo (FRES) 786.20p 6.59%
Anglo American (AAL) 1,506.00p 5.04%
International Consolidated Airlines Group SA (CDI) (IAG) 177.85p 4.96%
Glencore (GLEN) 148.22p 4.91%
Rio Tinto (RIO) 4,109.00p 4.77%
Carnival (CCL) 927.60p 4.72%
Royal Dutch Shell 'B' (RDSB) 1,227.00p 4.37%
BHP Group (BHP) 1,473.20p 4.25%
BP (BP.) 308.85p 4.17%
Smith & Nephew (SN.) 1,588.50p 4.13%

FTSE 100 - Fallers

Ocado Group (OCDO) 1,936.00p -0.95%
Tesco (TSCO) 239.90p -0.04%
Imperial Brands (IMB) 1,630.00p 0.09%
Rightmove (RMV) 503.20p 0.24%
Admiral Group (ADM) 2,293.00p 0.26%
Auto Trader Group (AUTO) 504.60p 0.52%
Morrison (Wm) Supermarkets (MRW) 190.85p 0.61%
British American Tobacco (BATS) 3,069.50p 0.66%
BAE Systems (BA.) 499.90p 0.68%
Sainsbury (J) (SBRY) 188.60p 0.72%

FTSE 250 - Risers

Hochschild Mining (HOC) 184.50p 14.31%
Mitchells & Butlers (MAB) 156.00p 8.33%
BlackRock World Mining Trust (BRWM) 345.00p 6.81%
TUI AG Reg Shs (DI) (TUI) 278.90p 6.69%
PureTech Health (PRTC) 240.00p 6.67%
Hammerson (HMSO) 51.28p 6.46%
Aston Martin Lagonda Global Holdings (AML) 35.62p 6.46%
Frasers Group (FRAS) 258.60p 5.98%
Fidelity Special Values (FSV) 173.00p 5.88%
G4S (GFS) 91.20p 5.78%

FTSE 250 - Fallers

Ninety One (N91) 181.40p -2.47%
JPMorgan Indian Investment Trust (JII) 484.00p -1.63%
Airtel Africa (AAF) 38.65p -0.90%
Biffa (BIFF) 208.50p -0.71%
Vivo Energy (VVO) 72.00p -0.28%
Marston's (MARS) 33.96p -0.18%
JPMorgan Emerging Markets Inv Trust (JMG) 860.00p -0.12%
Softcat (SCT) 1,165.00p -0.09%
Bodycote (BOY) 509.00p 0.00%
Vesuvius (VSVS) 359.40p 0.00%