London open: Stocks rise after better-than-expected Chinese data
London stocks rose in early trade on Tuesday as encouraging Chinese manufacturing figures helped to boost sentiment.
At 0840 GMT, the FTSE 100 was up 1.8% at 5,663.72.
Data released earlier showed that China’s manufacturing sector rebounded in March. The official manufacturing purchasing managers’ index rose to 52.0 from a record low of 35.7 in February, comfortably beating expectations for a reading of 44.8. It was also above the 50.0 mark that separates contraction from expansion.
The non-manufacturing PMI increased to 52.3 in March from 29.6 the month before, beating expectations for a reading of 42.0.
Spreadex analyst Connor Campbell said: "China provided Western investors with a light at the end of the tunnel on Tuesday, showing it is possible to return to growth after the worst (hopefully) of the coronavirus crisis."
On the corporate front, it seemed investors were taking the latest string of Covid-19 updates in their stride.
Manufacturing group Melrose Industries was the standout gainer after issuing a profit warning late on Monday and pulling its final dividend as it reported a "significant deterioration" in end markets due to the coronavirus pandemic.
Royal Dutch Shell was in the green even after it forecast first-quarter writedowns of up to $800m as oil prices crashed in the face of a demand slump due to the coronavirus pandemic.
Advertising company WPP rose as it pulled guidance and suspended its dividend and share buyback due to the pandemic.
Smiths Group advanced even after it delayed the demerger of its medical business and scrapped its half-year dividend as the engineering group reported intensifying disruption from the coronavirus crisis.
Specialist products manufacturer Morgan Advanced Materials gained despite suspending its dividend and withdrawing its 2020 guidance due to the virus outbreak.
St Modwen Properties was up as it pulled its dividend and said the board would take a 20% pay cut and make sure all furloughed employees as a result of the coronavirus lockdown would receive full salary.
Imperial Brands rallied as it said Covid-19 had no material effect on its trading so far as the tobacco and vaping company unveiled a new €3.5bn (£3.1bn) revolving credit arrangement with its lenders.
Severn Trent ticked higher after saying it has seen no material change to current year business performance since the 28 January trading update.
Market Movers
FTSE 100 (UKX) 5,663.72 1.80%
FTSE 250 (MCX) 14,953.34 2.25%
techMARK (TASX) 3,316.66 1.93%
FTSE 100 - Risers
Melrose Industries (MRO) 101.70p 16.23%
Smiths Group (SMIN) 1,194.50p 7.08%
Carnival (CCL) 970.00p 6.69%
Imperial Brands (IMB) 1,419.00p 6.45%
easyJet (EZJ) 587.00p 6.34%
Royal Dutch Shell 'B' (RDSB) 1,331.40p 5.50%
Informa (INF) 446.00p 5.44%
WPP (WPP) 541.40p 4.96%
Royal Dutch Shell 'A' (RDSA) 1,387.80p 4.72%
M&G (MNG) 123.00p 4.68%
FTSE 100 - Fallers
Rio Tinto (RIO) 3,632.00p -1.14%
Pennon Group (PNN) 1,112.00p -0.98%
United Utilities Group (UU.) 939.00p -0.89%
Standard Chartered (STAN) 453.50p -0.44%
Lloyds Banking Group (LLOY) 33.36p -0.43%
HSBC Holdings (HSBA) 461.35p -0.28%
Reckitt Benckiser Group (RB.) 6,184.00p -0.26%
Experian (EXPN) 2,343.00p -0.21%
Smith (DS) (SMDS) 274.90p 0.00%
Pearson (PSON) 560.80p 0.00%
FTSE 250 - Risers
Cineworld Group (CINE) 51.00p 8.83%
Wizz Air Holdings (WIZZ) 2,292.00p 7.66%
Signature Aviation (SIG) 169.10p 7.60%
Trainline (TRN) 322.00p 7.33%
Marks & Spencer Group (MKS) 106.00p 7.11%
IWG (IWG) 173.50p 7.10%
Renishaw (RSW) 3,164.00p 6.53%
Airtel Africa (AAF) 40.88p 6.40%
Senior (SNR) 65.75p 5.88%
Hammerson (HMSO) 70.54p 5.85%
FTSE 250 - Fallers
Aston Martin Lagonda Global Holdings (AML) 205.00p -9.33%
HGCapital Trust (HGT) 200.50p -4.98%
Bakkavor Group (BAKK) 94.90p -4.04%
GCP Infrastructure Investments Ltd (GCP) 106.00p -2.75%
Centamin (DI) (CEY) 126.40p -2.73%
Petropavlovsk (POG) 20.90p -2.56%
AJ Bell (AJB) 302.50p -2.42%
Henderson Smaller Companies Inv Trust (HSL) 641.00p -1.99%
Rotork (ROR) 218.50p -1.84%
Pantheon International (PIN) 1,688.00p -1.63%