London open: Stocks rise as UK consumer confidence improves
London stocks edged slightly higher on Friday after a report showed an improvement in UK consumer confidence and as investors awaited data on US economic growth.
GfK’s consumer confidence index rose to-1 in May from -3 a month earlier, beating estimates for a reading of -4.
“It is a relief that consumer confidence was a little firmer in May following April’s drop to a 16-month low, but the suspicion is that consumers will be cautious in their spending amid heightened uncertainty in the run-up to the 23 June referendum on UK membership of the European Union,” said Howard Archer, chief UK and European economist at IHS Global Insight.
At the same time a declaration at the G7 meeting in Japan said a vote by the UK to leave the EU would pose a "serious threat to global growth".
The group warned in its final statement that Brexit would reverse the trend of increased global trade, investment and jobs.
Still to come, US gross domestic product figures are due at 1330 BST, US personal consumption data will be released at 1330 BST and the University of Michigan’s consumer confidence report will be published at 1500 BST.
Meanwhile, oil prices fell after reaching the $50 a barrel mark as concerns about an oversupplied market resumed. Brent crude fell 0.79% to $49.20 per barrel and West Texas Intermediate dropped 0.61% to $49.18 per barrel at 0859 BST.
On the company front, mining stocks rallied as gold and copper prices rose. Rio Tinto, Glencore and BHP Billiton were the top risers on the FTSE 100 in morning trade.
Wolseley gained as it said on Friday that Simon Nicholls - the current chief financial officer of Cobham - will not be taking up his role as CFO later this year, as announced back in January.
Bodycote declined as it reported a drop in revenue between 1 January and 30 April, but reiterated its expectations for the year.
Market Movers
FTSE 100 (UKX) 6,268.89 0.05%
FTSE 250 (MCX) 17,180.42 -0.07%
techMARK (TASX) 3,118.00 -0.11%
FTSE 100 - Risers
Rio Tinto (RIO) 2,003.00p 1.73%
Glencore (GLEN) 137.60p 1.21%
BHP Billiton (BLT) 861.10p 1.09%
Fresnillo (FRES) 1,043.00p 1.07%
Anglo American (AAL) 635.10p 0.94%
United Utilities Group (UU.) 962.50p 0.79%
Legal & General Group (LGEN) 240.30p 0.71%
Barclays (BARC) 185.95p 0.62%
Randgold Resources Ltd. (RRS) 5,890.00p 0.60%
Antofagasta (ANTO) 450.50p 0.58%
FTSE 100 - Fallers
Capita (CPI) 1,079.00p -1.73%
Hargreaves Lansdown (HL.) 1,336.00p -0.74%
Dixons Carphone (DC.) 442.20p -0.72%
Berkeley Group Holdings (The) (BKG) 3,352.00p -0.68%
International Consolidated Airlines Group SA (CDI) (IAG) 541.00p -0.64%
Lloyds Banking Group (LLOY) 72.37p -0.60%
Admiral Group (ADM) 1,933.00p -0.57%
Standard Chartered (STAN) 546.20p -0.55%
Tesco (TSCO) 167.70p -0.53%
Intu Properties (INTU) 302.60p -0.49%
FTSE 250 - Risers
Phoenix Group Holdings (DI) (PHNX) 865.50p 1.88%
Aldermore Group (ALD) 221.80p 1.84%
Kaz Minerals (KAZ) 157.00p 1.75%
Synthomer (SYNT) 350.00p 1.69%
Euromoney Institutional Investor (ERM) 985.00p 1.55%
Hays (HAS) 136.70p 1.26%
Grainger (GRI) 243.60p 1.16%
Serco Group (SRP) 105.10p 1.06%
B&M European Value Retail S.A. (DI) (BME) 293.50p 0.96%
Ophir Energy (OPHR) 71.00p 0.92%
FTSE 250 - Fallers
Homeserve (HSV) 480.90p -1.60%
Grafton Group Units (GFTU) 735.00p -1.28%
Card Factory (CARD) 361.70p -1.17%
Allied Minds (ALM) 333.40p -1.07%
Hikma Pharmaceuticals (HIK) 2,203.00p -1.03%
Rotork (ROR) 197.60p -1.00%
Bodycote (BOY) 593.50p -1.00%
Fidessa Group (FDSA) 2,314.00p -0.81%
Jupiter Fund Management (JUP) 436.70p -0.80%
Big Yellow Group (BYG) 840.00p -0.77%