London open: Stocks edge up ahead of US initial jobless claims

London stocks edged higher in early trade on Thursday as investors awaited fresh catalysts.

At 0920 GMT, the FTSE 100 was up 0.3% at 6,543.54.

Milan Cutkovic, market analyst at Axi, said: "With major Asian markets shut for a public holiday and the earnings season slowly coming to an end, investors are waiting for the next big catalyst to propel stocks to new highs.

"The economic calendar for the coming days is looking light and market participants will likely shift their focus back to the stimulus negotiations in Washington DC as well as the global vaccination efforts.

"While investors have accepted that the negotiations around the $1.9 trillion coronavirus relief plan could take a couple of weeks, their patience could soon run thin amid a lack of other major catalysts.

"US President Biden held his first official phone call with Chinese President Xi Jinping yesterday. With US-China relations at their lowest point in decades, many challenges lie ahead."

There are no major UK macro releases due, but investors will eye the latest initial jobless claims in the US at 1330 GMT.

On the corporate front, pharmaceuticals giant AstraZeneca rallied as it posted a spike in final revenues, fuelled by strong demand for its oncology drugs, and predicted further strong growth for the current year.

Relx - formerly Reed Elsevier - also rallied after well-received full-year results, along with Coca-Cola HBC.

Elsewhere, product testing and certification company Intertek was boosted by an upgrade to ‘overweight’ at Morgan Stanley.

Royal Mail surged after saying it expects full-year group adjusted profit to be "well in excess" of £500m after a strong rise in parcel revenues in Christmas period.

Polypipe gained after the piping manufacturer said it raised around £96.3m in a placing to help fund the £210m acquisition of magnetic filters maker ADEY.

On the downside, banks lost ground, with NatWest, Barclays and Lloyds all weaker.

SSP shares slumped after the Upper Crust and Ritazza owner said it is considering debt and equity funding options following a report about a possible £500m equity raise.

Market Movers

FTSE 100 (UKX) 6,543.54 0.29%
FTSE 250 (MCX) 21,004.18 0.04%
techMARK (TASX) 4,135.09 0.39%

FTSE 100 - Risers

Coca-Cola HBC AG (CDI) (CCH) 2,368.00p 4.78%
Intertek Group (ITRK) 5,778.00p 3.36%
Entain (ENT) 1,353.00p 2.50%
Experian (EXPN) 2,590.00p 2.25%
Kingfisher (KGF) 279.40p 2.05%
Avast (AVST) 501.00p 2.00%
Pershing Square Holdings Ltd NPV (PSH) 2,595.00p 1.96%
Halma (HLMA) 2,511.00p 1.87%
Just Eat Takeaway.Com N.V. (CDI) (JET) 7,762.00p 1.86%
Antofagasta (ANTO) 1,561.50p 1.73%

FTSE 100 - Fallers

NATWEST GROUP PLC ORD 100P (NWG) 171.95p -1.86%
Land Securities Group (LAND) 613.30p -1.71%
Rolls-Royce Holdings (RR.) 91.58p -1.31%
Whitbread (WTB) 3,147.00p -1.16%
Barclays (BARC) 145.98p -1.15%
Royal Dutch Shell 'B' (RDSB) 1,291.20p -1.13%
Royal Dutch Shell 'A' (RDSA) 1,348.00p -1.12%
British Land Company (BLND) 462.90p -1.11%
Lloyds Banking Group (LLOY) 37.13p -0.99%
Anglo American (AAL) 2,688.00p -0.92%

FTSE 250 - Risers

Polypipe Group (PLP) 548.00p 6.61%
Royal Mail (RMG) 456.30p 6.19%
Hays (HAS) 155.10p 2.92%
VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 430.00p 1.90%
Just Eat Takeaway.Com N.V. (CDI) (JET) 7,762.00p 1.86%
Babcock International Group (BAB) 244.70p 1.62%
Weir Group (WEIR) 1,979.00p 1.59%
Games Workshop Group (GAW) 10,340.00p 1.47%
Britvic (BVIC) 804.50p 1.45%
Future (FUTR) 1,852.00p 1.31%

FTSE 250 - Fallers

SSP Group (SSPG) 304.40p -3.97%
Hammerson (HMSO) 22.07p -3.62%
Watches of Switzerland Group (WOSG) 634.00p -3.06%
National Express Group (NEX) 286.60p -3.04%
CLS Holdings (CLI) 214.00p -2.73%
FirstGroup (FGP) 76.65p -2.54%
Petrofac Ltd. (PFC) 118.75p -2.50%
Beazley (BEZ) 351.60p -2.50%
Aberforth Smaller Companies Trust (ASL) 1,232.00p -2.38%
BMO Commercial Property Trust Limited (BCPT) 73.20p -2.01%