London open: Stocks push higher as investors eye manufacturing data, Fed
London stocks rose in early trade, supported by upbeat manufacturing data from China and Japan as investors looked to key UK manufacturing data and the latest rate announcement from the Federal Reserve.
At 0840 GMT, the FTSE 100 was up 0.8% to 7,154.86.
Earlier, figures released in China showed manufacturing in January expanded at close to its fastest pace in two years. China's official manufacturing purchasing managers’ index came in at 51.3, down a touch from 51.4 in December but beating expectations for a reading of 51.2.
Meanwhile, in Japan, a survey revealed manufacturing was at its highest level in nearly three years. The final Markit/Nikkei Japan manufacturing purchasing managers' index came in at a seasonally-adjusted 52.7, a touch below the flash reading of 52.8 but higher than December’s final reading of 52.4.
In corporate news, TalkTalk was on the rise as it announced that chief executive Dido Harding was stepping down, and said revenue and earnings for the current financial year would be affected by re-contracting activity, but will be in line with previous guidance.
BT gained ground as it said Openreach has appointed Sir Brendan Barber and Edward Astle as independent members of its newly formed board, created as part of an Ofcom-guided strategy to improve autonomy and independence at the telecoms infrastructure firm.
Aerospace and defence group Rolls-Royce was on the front foot as UBS lifted the stock to ‘buy’ from ‘neutral’.
Gold miner Centamin gained ground as it posted a big jump in revenue and profit for 2016 and lifted its dividend payment.
Wizz Air flew lower after the Central and Eastern Europe focused airline cut its underlying net profit guidance for the full year despite reporting a surge in third-quarter profit, on the back of lower fuel prices and severe weather conditions.
Hochschild Mining was also weaker as it said it has suspended operations at its Inmaculada mine in southern Peru following a fatal accident involving two contractors on Tuesday.
Paper and packaging company Mondi nudged down after announcing the retirement of chief executive David Hathorn in July, with longtime fellow board member Peter Oswald promoted to replace him.
Markit’s manufacturing purchasing managers’ index is at 0930 GMT. In the US, the ADP employment report is at 1315 GMT, while Markit’s manufacturing PMI is at 1445 GMT and ISM manufacturing is at 1500 GMT.
Investors in the UK will also be eyeing the second and final day of the Commons debate on the EU bill to allow the UK government trigger article 50 to leave the EU. The debate will culminate in a vote later on Wednesday that should pave the way for publication on Thursday allowing Prime Minister Theresa May to pull the trigger in March.
Meanwhile, the Fed is widely expected to stand pat on interest rates. Accendo Markets’ Mike van Dulken said this should allow Trump to find his policy-making feet and the Fed to monitor steady data that could warrant further tightening but with no urgency.
“Hints (if any) on timing will have to be drawn from the official statement as accompanying press conferences are only every other meeting. She last spoke in Dec when she last hiked and reiterated a gradual pace. With consensus expecting three hikes this year, we’ll likely have to wait for March, if not June,” he said.
Market Movers
FTSE 100 (UKX) 7,154.86 0.78%
FTSE 250 (MCX) 18,239.89 0.51%
techMARK (TASX) 3,258.97 1.03%
FTSE 100 - Risers
Rolls-Royce Holdings (RR.) 681.00p 2.02%
BT Group (BT.A) 309.35p 1.81%
Shire Plc (SHP) 4,458.50p 1.80%
BHP Billiton (BLT) 1,462.00p 1.70%
Ashtead Group (AHT) 1,633.00p 1.68%
Lloyds Banking Group (LLOY) 65.98p 1.62%
AstraZeneca (AZN) 4,261.00p 1.60%
Smiths Group (SMIN) 1,524.00p 1.53%
Royal Mail (RMG) 417.60p 1.46%
Hikma Pharmaceuticals (HIK) 1,850.00p 1.43%
FTSE 100 - Fallers
Fresnillo (FRES) 1,443.00p -0.69%
Randgold Resources Ltd. (RRS) 6,725.00p -0.44%
Dixons Carphone (DC.) 314.70p -0.38%
Mediclinic International (MDC) 782.50p -0.32%
ITV (ITV) 202.70p -0.25%
British American Tobacco (BATS) 4,890.50p -0.18%
Tesco (TSCO) 194.60p 0.00%
Mondi (MNDI) 1,752.00p 0.06%
Paddy Power Betfair (PPB) 8,350.00p 0.06%
BAE Systems (BA.) 582.50p 0.09%
FTSE 250 - Risers
TalkTalk Telecom Group (TALK) 168.30p 7.54%
Ferrexpo (FXPO) 157.90p 3.88%
Zoopla Property Group (ZPLA) 380.40p 3.88%
Aldermore Group (ALD) 226.30p 3.33%
Man Group (EMG) 136.60p 2.71%
Sophos Group (SOPH) 280.60p 2.33%
Centamin (DI) (CEY) 160.30p 2.23%
PayPoint (PAY) 981.50p 2.08%
UDG Healthcare Public Limited Company (UDG) 654.00p 2.03%
Barr (A.G.) (BAG) 512.00p 1.99%
FTSE 250 - Fallers
Wizz Air Holdings (WIZZ) 1,653.00p -7.19%
Hochschild Mining (HOC) 233.80p -5.15%
Henderson Group (HGG) 211.50p -2.98%
Ocado Group (OCDO) 244.30p -2.04%
Close Brothers Group (CBG) 1,421.00p -2.00%
Nostrum Oil & Gas (NOG) 464.00p -1.59%
Petra Diamonds Ltd.(DI) (PDL) 149.90p -0.86%
Electra Private Equity (ELTA) 4,615.00p -0.82%
Millennium & Copthorne Hotels (MLC) 428.00p -0.81%
Daejan Holdings (DJAN) 6,280.00p -0.79%