London open: Mining stocks lead UK equities higher

London stocks rebounded on Tuesday as mining shares reversed declines in the previous session.

Worse-than-expected UK, US and Chinese manufacturing data pushed miners in to the red on Monday but the market was looking optimistic on the prospect of better construction figures from Markit at 0930 GMT.

“Whilst yesterday’s UK manufacturing PMI failed to make much of an impact due to the aggressively negative trading atmosphere, today’s construction PMI (expected at 56.1 against 55.3 last month) stands more of a chance to make its mark, though the generally positive push may once again cause a lack of nuance in regards to investors’ reaction to data,” said Connor Campbell, financial analyst at Spreadex.

Eurozone inflation data will also be in focus at 1000 GMT with analysts expecting improved figures for December. The consumer price index is estimated to rise 0.4% year-on-year in December compared to 0.2% in November.

In an effort to lift low inflation, the European Central Bank last month decided to cut the deposit facility rate by 10 basis points and extend its asset purchase programme until at least March 2017.

Elsewhere in Europe, German unemployment fell 14,000 in December, beating forecasts for a 8,000 decrease. The unemployment rate remained at 6.3% last month, as predicted by economists.

Stateside, Federal Reserve Bank of San Francisco President John Williams said Monday he sees steady increases in interest rates this year if the US continues to see steady economic growth, improvement in the labour market and a rise in inflation.

“I could easily see it be three or five or more or less depending" on what happens with the economy, he said, according to The Wall Street Journal.

On the company front, oil stocks were under the cosh amid concerns about a supply glut. Brent and WTI prices slid 0.86% to $36.90 per barrel and 0.38% to $36.62 per barrel, respectively at 0905 GMT. Among the fallers were BP, Tullow Oil and Nostrum Oil & Gas.

Royal Bank of Scotland rallied after RBC Capital Markets upgraded the lender’s stock to ‘outperform’ from ‘sector perform’ and lifted the target price to 375p from 350p.

Next slumped after reporting Christmas period sales that missed analysts’ expectations, reflecting “mainly” mild weather.

Bwin.party gained as it said its fourth quarter net revenue was up 5% on the previous year, driven primarily by sports betting and casino games through mobile channels.

Wizz Air flew higher after posting record passenger numbers in the 12 months to 31 December 2015.

Market Movers

FTSE 100 (UKX) 6,138.61 0.74%
FTSE 250 (MCX) 17,202.96 0.47%
techMARK (TASX) 3,213.60 0.72%

FTSE 100 - Risers

Glencore (GLEN) 89.12p 4.52%
Tesco (TSCO) 147.75p 3.87%
Royal Mail (RMG) 447.60p 2.43%
Anglo American (AAL) 284.55p 2.41%
Bunzl (BNZL) 1,885.00p 2.39%
BHP Billiton (BLT) 752.90p 2.30%
Fresnillo (FRES) 725.00p 2.18%
Hikma Pharmaceuticals (HIK) 2,275.00p 1.88%
Vodafone Group (VOD) 220.00p 1.85%
Royal Bank of Scotland Group (RBS) 298.90p 1.84%

FTSE 100 - Fallers

Next (NXT) 6,840.00p -4.87%
Aberdeen Asset Management (ADN) 270.30p -4.15%
Marks & Spencer Group (MKS) 427.90p -1.70%
Standard Chartered (STAN) 533.70p -1.48%
Burberry Group (BRBY) 1,127.00p -1.14%
Old Mutual (OML) 166.60p -0.48%
BP (BP.) 346.60p -0.27%
ARM Holdings (ARM) 1,002.00p -0.20%
Experian (EXPN) 1,155.00p -0.17%
Worldpay Group (WI) (WPG) 302.50p -0.13%

FTSE 250 - Risers

Vedanta Resources (VED) 283.60p 4.19%
Home Retail Group (HOME) 102.50p 3.85%
Spire Healthcare Group (SPI) 313.20p 3.85%
Melrose Industries (MRO) 293.30p 2.84%
Rightmove (RMV) 4,201.00p 2.64%
RPC Group (RPC) 779.50p 2.57%
Temple Bar Inv Trust (TMPL) 1,050.00p 2.54%
Ashmore Group (ASHM) 255.20p 2.53%
Vesuvius (VSVS) 325.90p 2.48%
Ted Baker (TED) 2,990.00p 2.19%

FTSE 250 - Fallers

BTG (BTG) 662.00p -4.06%
Nostrum Oil & Gas (NOG) 389.90p -3.85%
Tullow Oil (TLW) 164.60p -3.23%
Cairn Energy (CNE) 156.60p -2.37%
Debenhams (DEB) 70.80p -2.34%
Supergroup (SGP) 1,613.00p -1.95%
DFS Furniture (DFS) 322.00p -1.71%
Allied Minds (ALM) 419.90p -1.66%
Rotork (ROR) 170.70p -0.99%
Investec (INVP) 457.60p -0.87%