London open: Stocks led higher by miners, banks
London stocks pushed higher in early trade, with miners and banks putting in a strong performance as investors continued to digest recent comments from central bankers.
At 0835 BST, the FTSE 100 was up 0.7% to 7,439.38, while the pound was up 0.5% against the dollar at 1.2988 and 0.1% versus the euro at 1.1368. Spreadex analyst Connor Campbell said sterling was being flattered by the greenback's weakness, as it takes a hit from the latest healthcare reform delay and subsequent suggestion that Donald Trump may not be able to implement a single one of his election promises domestically.
Market participants were mulling comments from Fed Chair Janet Yellen, who said on Wednesday that she does not believe we will see a repeat of a banking crisis "in our lifetime". Meanwhile, the European Central Bank was forced to clarify its position after it felt markets had misinterpreted head Mario Draghi's upbeat comments the day before, which seemed to suggest an end to economic stimulus. The ECB insisted its policy is working well and will remain in place for the foreseeable future.
There will be a slew of data releases for investors to sink their teeth into, with net lending, consumer credit and mortgage approvals all due at 0930 BST.
On the corporate front, banks were doing well, with HSBC, Standard Chartered and Barclays all higher. Neil Wilson, senior market analyst at ETX Capital, said: "Banking stocks jumped on the open after regulators in the US gave the greenlight to higher dividends and buybacks, whilst the hints of a shift in tone from central bankers towards tightening is spurring hopes of higher interest rates again."
HSBC was also boosted by an upgrade from Morgan Stanley.
Elsewhere, commodity-related stocks were also in the black, with Anglo American, Rio Tinto and Glencore among the top risers.
Supermarket giant Tesco ticked higher as it gave the CMA a hurry-along over its proposed merger with wholesale group Booker, first announced on 27 January.
Engineering services company Babcock rose after announcing it has been awarded a new contract by the Norwegian Government on Thursday, to provide communities across Norway with “vital” air ambulance support.
Inmarsat edged higher as it confirmed the successful launch of its S-band satellite for the European Aviation Network.
FTSE 250 packaging group DS Smith surged after it reported a 31% rise in full-year pre-tax profit and announced the acquisition of an 80% stake in US packaging and paper producer Interstate Resources from Merpas Co for $920m.
Pub operator Greene King was in the red as it posted a rise in adjusted profit and revenue but a drop in statutory profit for the year, and warned over economic uncertainty.
Royal Mail was the biggest loser on the FTSE 100 as its stock went ex-dividend, while JD Sports slumped as it said it was on track to meet full-year expectations but that it was seeing some margin pressure.
Market Movers
FTSE 100 (UKX) 7,439.38 0.70%
FTSE 250 (MCX) 19,490.18 0.07%
techMARK (TASX) 3,572.01 0.06%
FTSE 100 - Risers
HSBC Holdings (HSBA) 712.90p 3.86%
Anglo American (AAL) 1,050.50p 3.80%
Rio Tinto (RIO) 3,263.00p 3.41%
Glencore (GLEN) 293.15p 3.20%
Johnson Matthey (JMAT) 3,000.00p 2.92%
Antofagasta (ANTO) 809.50p 2.73%
BHP Billiton (BLT) 1,210.50p 2.67%
Fresnillo (FRES) 1,590.00p 2.25%
Standard Chartered (STAN) 778.20p 1.93%
Barclays (BARC) 206.95p 1.72%
FTSE 100 - Fallers
Royal Mail (RMG) 412.70p -3.53%
Mediclinic International (MDC) 735.50p -1.80%
Intertek Group (ITRK) 4,265.00p -1.61%
International Consolidated Airlines Group SA (CDI) (IAG) 621.50p -1.35%
Coca-Cola HBC AG (CDI) (CCH) 2,307.00p -1.24%
Micro Focus International (MCRO) 2,364.00p -0.46%
Diageo (DGE) 2,301.75p -0.42%
Informa (INF) 689.00p -0.36%
Rolls-Royce Holdings (RR.) 908.00p -0.22%
AstraZeneca (AZN) 5,230.00p -0.19%
FTSE 250 - Risers
Smith (DS) (SMDS) 477.50p 7.52%
Vedanta Resources (VED) 643.50p 3.79%
Evraz (EVR) 201.70p 2.80%
Ferrexpo (FXPO) 207.50p 2.67%
Kaz Minerals (KAZ) 516.50p 2.58%
Nostrum Oil & Gas (NOG) 515.50p 2.49%
Northgate (NTG) 455.00p 2.34%
Virgin Money Holdings (UK) (VM.) 272.50p 1.83%
Petrofac Ltd. (PFC) 445.10p 1.83%
CYBG (CYBG) 279.00p 1.82%
FTSE 250 - Fallers
JD Sports Fashion (JD.) 372.20p -6.44%
Nex Group (NXG) 626.50p -3.39%
Tate & Lyle (TATE) 678.50p -2.72%
Stagecoach Group (SGC) 186.10p -2.62%
CLS Holdings (CLI) 197.70p -2.47%
Amec Foster Wheeler (AMFW) 470.90p -2.46%
Euromoney Institutional Investor (ERM) 1,082.00p -2.26%
Wood Group (John) (WG.) 648.00p -1.89%
Polypipe Group (PLP) 380.70p -1.27%
Go-Ahead Group (GOG) 1,732.00p -1.25%