London open: Stocks edge up as investors await energy bill plan
London stocks edged up in early trade on Thursday, taking their cue from an upbeat session on Wall Street, as investors awaited news of a UK energy package and the latest policy announcement from the European Central Bank.
At 0825 BST, the FTSE 100 was up 0.3% at 7,262.65.
New prime minister Liz Truss is expected to announce an emergency energy package later in the day to protect consumers and businesses from surging bills. According to reports, the plan could involve freezing the utility price cap at £2,500 until 2024.
Richard Hunter, head of markets at Interactive Investor, said: "In the UK, the announcement of government measures to cap energy bill rises is expected imminently. While any such measures are likely to be welcomed warmly by consumers, with sectors such as retail and housebuilders showing some strength in anticipation of a potential easing of the cost-of-living crisis, the effect has been negative on sterling.
"An estimated cost to the government which is likely to exceed £100bn has raised some concerns within the debt market, given that the trade deficit is already standing at record levels. The additional headwinds of declining consumer confidence, persistent inflation and an almost inevitable recession add to an increasingly dour outlook for the UK in the short and perhaps even medium term."
In equity markets, turnaround specialist Melrose Industries rallied as it said it plans to demerge its GKN Automotive and GKN Powder Metallurgy businesses and list the new holding company.
Genus and Energean were also high risers after well-received results.
On the downside, Darktrace tanked after tech investment firm Thoma Bravo said it will not be making an offer for the cybersecurity firm. Darktrace said in a statement that the two parties had been unable to reach an agreement on the terms of an offer.
Elsewhere, Primark owner Associated British Foods slid as it warned that adjusted operating profit and earnings per share for the next financial year will be lower than this financial year.
Market Movers
FTSE 100 (UKX) 7,262.65 0.34%
FTSE 250 (MCX) 18,897.86 0.46%
techMARK (TASX) 4,286.03 0.94%
FTSE 100 - Risers
Melrose Industries (MRO) 144.15p 4.72%
Smith & Nephew (SN.) 1,117.00p 2.01%
Rio Tinto (RIO) 4,709.50p 1.67%
Antofagasta (ANTO) 1,122.00p 1.54%
International Consolidated Airlines Group SA (CDI) (IAG) 111.36p 1.53%
St James's Place (STJ) 1,134.50p 1.52%
Ashtead Group (AHT) 4,243.00p 1.46%
Aviva (AV.) 438.40p 1.39%
Scottish Mortgage Inv Trust (SMT) 808.40p 1.35%
Prudential (PRU) 930.00p 1.35%
FTSE 100 - Fallers
Associated British Foods (ABF) 1,333.00p -8.38%
Next (NXT) 5,804.00p -4.03%
Harbour Energy (HBR) 446.20p -2.96%
Sainsbury (J) (SBRY) 204.00p -1.45%
B&M European Value Retail S.A. (DI) (BME) 357.50p -1.32%
Hikma Pharmaceuticals (HIK) 1,271.00p -0.86%
London Stock Exchange Group (LSEG) 7,882.00p -0.78%
Tesco (TSCO) 247.60p -0.68%
GSK (GSK) 1,336.80p -0.57%
Abrdn (ABDN) 152.80p -0.55%
FTSE 250 - Risers
Genus (GNS) 2,566.00p 7.01%
Energean (ENOG) 1,313.00p 5.46%
Spirent Communications (SPT) 267.40p 4.86%
JTC (JTC) 752.00p 4.01%
Bellevue Healthcare Trust (Red) (BBH) 170.60p 2.77%
Hochschild Mining (HOC) 61.25p 2.77%
Helios Towers (HTWS) 115.90p 2.66%
Lancashire Holdings Limited (LRE) 513.50p 2.60%
Babcock International Group (BAB) 328.00p 2.44%
Allianz Technology Trust (ATT) 233.50p 2.41%
FTSE 250 - Fallers
Darktrace (DARK) 370.00p -28.13%
AJ Bell (AJB) 269.60p -3.71%
ITV (ITV) 61.94p -3.67%
ASOS (ASC) 674.50p -3.44%
Marks & Spencer Group (MKS) 118.40p -2.95%
FirstGroup (FGP) 115.50p -2.28%
NCC Group (NCC) 215.00p -1.83%
BBGI Global Infrastructure S.A. NPV (DI) (BBGI) 166.20p -1.77%
Pets at Home Group (PETS) 307.80p -1.72%
Moonpig Group (MOON) 192.00p -1.54%