London open: Stocks rebound after better-than-expected Chinese inflation

London stocks rebounded on Wednesday as Chinese inflation picked up in November.

China’s consumer price index rose 1.5% last month from a year earlier, according to the National Bureau of Statistics, compared to analysts’ estimates of 1.4% and October’s 1.3%.

The improvement was boosted by an increase in food and services prices.

“While there is no disputing that the China economy is slowing down, this release at least provides optimism that the multiple measures taken by both the PBoC and Beijing to uplift the economy have had some sort of positive impact on inflation,” said FXTM research analyst Lukman Otunuga.

China producer prices fell 5.9% in November from a year ago, less than the 6% decrease expected and following a 5.9% drop in October.

In the Eurozone, German exports fell 1.2% month-on-month in October, worse than the 0.6% drop forecast by analysts and after a 2.6% increase in September. Imports declined 3.4% in October, compared to analysts’ estimates for a 1% decrease and the previous month’s 3.8% increase.

At home, the Bank of England’s Monetary Policy Committee record of the November meeting will be released at 0930 GMT ahead of the central bank’s interest rate decision on Thursday. The BoE is expected to keep rates unchanged at this week’s policy decision.

Meanwhile, oil prices reversed declines with Brent rising 1.1% to $40.71 per barrel and West Texas Intermediate increasing 1.4% to $38.06 per barrel at 0854 GMT.

Company-wise, BHP Billiton and Rio Tinto were in positive territory after registering declines on Tuesday.

First Group advanced after the company said it would continue to operate the Trans Pennie franchise until at least 2023.

Entertainment One rebounded as it confirmed that the company continues to trade in line with full year underlying earnings expectations, as it responded to recent weakness in its share price. The stock has been under pressure since the company announced a refinancing deal that will increase its interest payments.

BBA Aviation declined after saying group revenue was down 3% on an organic basis from 1 July to 21 November, excluding the impact of exchange rates, fuel prices, acquisitions and disposals.

Market Movers

FTSE 100 (UKX) 6,136.31 0.02%
FTSE 250 (MCX) 17,185.45 -0.04%
techMARK (TASX) 3,187.76 0.10%

FTSE 100 - Risers

Ashtead Group (AHT) 1,116.00p 8.24%
Royal Mail (RMG) 462.90p 1.69%
Dixons Carphone (DC.) 486.40p 1.48%
BHP Billiton (BLT) 733.30p 1.45%
Rio Tinto (RIO) 1,918.50p 1.35%
National Grid (NG.) 920.00p 1.10%
Rolls-Royce Holdings (RR.) 595.00p 0.85%
SSE (SSE) 1,436.00p 0.77%
Old Mutual (OML) 196.30p 0.77%
Compass Group (CPG) 1,147.00p 0.70%

FTSE 100 - Fallers

Fresnillo (FRES) 623.50p -6.73%
Anglo American (AAL) 312.85p -3.34%
G4S (GFS) 217.90p -2.42%
Pearson (PSON) 746.00p -2.36%
Antofagasta (ANTO) 434.50p -1.63%
Meggitt (MGGT) 362.30p -1.41%
Standard Chartered (STAN) 512.90p -1.29%
Burberry Group (BRBY) 1,185.00p -1.17%
Kingfisher (KGF) 336.30p -0.97%
Mondi (MNDI) 1,363.00p -0.94%

FTSE 250 - Risers

Entertainment One Limited (ETO) 153.50p 8.94%
Carillion (CLLN) 318.50p 5.50%
Balfour Beatty (BBY) 273.40p 4.19%
Ophir Energy (OPHR) 90.45p 3.97%
Moneysupermarket.com Group (MONY) 332.00p 3.78%
Fidessa Group (FDSA) 1,945.00p 3.07%
Rathbone Brothers (RAT) 2,240.00p 2.94%
Jimmy Choo (CHOO) 119.60p 2.93%
Petra Diamonds Ltd.(DI) (PDL) 62.40p 2.13%
FirstGroup (FGP) 105.10p 1.94%

FTSE 250 - Fallers

Stagecoach Group (SGC) 307.20p -13.73%
Go-Ahead Group (GOG) 2,633.00p -2.26%
AO World (AO.) 159.50p -2.03%
Kaz Minerals (KAZ) 98.10p -1.80%
Victrex plc (VCT) 1,858.00p -1.75%
Weir Group (WEIR) 1,020.00p -1.54%
BBA Aviation (BBA) 166.80p -1.48%
Card Factory (CARD) 366.80p -1.37%
Tullow Oil (TLW) 169.00p -1.34%
Rotork (ROR) 177.00p -1.34%