London open: Stocks rise as investors eye US retail sales

London stocks rose in early trade on Thursday, taking their cue from a positive session on Wall Street as investors awaited the release of US retail sales figures.

At 0840 BST, the FTSE 100 was up 0.4% at 7,044.81.

Richard Hunter, head of markets at Interactive Investor, said: "The generally positive opening was led by some strength within cyclical shares, although the moves were unconvincing. The indices nonetheless remain ahead in the year to date, with the FTSE 100 having added 9% and the FTSE 250 14.8%.

"Even so, with the known issues now on the table and potentially priced in, the next catalysts could either come from renewed signs of a global economic bounceback, or the third quarter reporting season providing positive shocks in the first weeks of October."

On the macroeconomic front, investors were eyeing the release of US retail sales data for August later in the day.

In equity markets, Ashtead rallied as it said it annual performance would beat its previous expectations as the equipment hire company reported a 53% increase in operating profit for the first quarter.

Online trading platform IG Group was a high riser as it posted a 6% jump in first-quarter revenues, while premium drinks company C&C fizzed higher after saying it has returned to profitability as Covid restrictions have eased.

DIY retailer Wickes, which recently demerged from Travis Perkins, was trading up after saying it now expects full-year profit towards the upper end of market expectations, as it reported better-than-expected interim profits.

Hilton Food gained after it increased its interim dividend by 17% as the food packaging company reported a strong first half, driven by its Australian operation.

On the downside, Games Workshop fell as it said trading for the three months to 29 August was in line with the board’s expectations and declared a dividend, but warned over pressure on freight costs and currency exchange rates.

Homewares retailer Dunelm was under the cosh as it traded without entitlement to the dividend, while Britvic was knocked lower by a rating downgrade at Deutsche Bank.

Market Movers

FTSE 100 (UKX) 7,044.81 0.40%
FTSE 250 (MCX) 23,542.29 0.47%
techMARK (TASX) 4,647.38 0.53%

FTSE 100 - Risers

Ashtead Group (AHT) 6,042.00p 3.21%
Rolls-Royce Holdings (RR.) 108.56p 2.90%
Informa (INF) 524.40p 1.94%
Compass Group (CPG) 1,475.50p 1.86%
International Consolidated Airlines Group SA (CDI) (IAG) 139.54p 1.76%
Whitbread (WTB) 3,239.00p 1.54%
SSE (SSE) 1,672.50p 1.33%
BAE Systems (BA.) 556.00p 1.28%
3i Group (III) 1,295.50p 1.25%
InterContinental Hotels Group (IHG) 4,549.00p 1.22%

FTSE 100 - Fallers

Anglo American (AAL) 2,896.00p -1.95%
Antofagasta (ANTO) 1,441.00p -1.71%
Rio Tinto (RIO) 5,141.00p -1.49%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,246.00p -0.97%
Burberry Group (BRBY) 1,765.00p -0.84%
Glencore (GLEN) 338.25p -0.63%
BHP Group (BHP) 2,025.00p -0.56%
Unilever (ULVR) 3,948.00p -0.53%
Fresnillo (FRES) 843.80p -0.50%
Polymetal International (POLY) 1,338.00p -0.48%

FTSE 250 - Risers

Drax Group (DRX) 467.20p 6.52%
IG Group Holdings (IGG) 874.50p 5.17%
C&C Group (CDI) (CCR) 235.00p 3.98%
Apax Global Alpha Limited (APAX) 225.00p 3.69%
CMC Markets (CMCX) 283.00p 3.28%
XP Power Ltd. (DI) (XPP) 5,330.00p 2.90%
QinetiQ Group (QQ.) 333.40p 2.58%
easyJet (EZJ) 578.60p 2.23%
Wickes Group (WIX) 237.40p 2.15%
Contour Global (GLO) 192.80p 2.12%

FTSE 250 - Fallers

Dunelm Group (DNLM) 1,434.00p -4.91%
Restaurant Group (RTN) 103.40p -4.61%
Games Workshop Group (GAW) 11,140.00p -3.97%
Rank Group (RNK) 168.00p -2.33%
Ferrexpo (FXPO) 339.40p -2.08%
Hochschild Mining (HOC) 148.80p -1.78%
International Public Partnerships Ltd. (INPP) 166.80p -1.77%
Fidelity China Special Situations (FCSS) 330.00p -1.35%
Britvic (BVIC) 917.50p -1.18%
Baillie Gifford Shin Nippon (BGS) 265.00p -1.12%