London open: Stocks rise on positive US, Asian cues

London stocks rose in early trade on Tuesday following mostly positive US and Asian sessions, as traders returned to their desks after the long Easter weekend.

At 0850 BST, the FTSE 100 was up 0.5% at 7,778.92.

Investors were digesting the latest data out of China, which showed that consumer price inflation slowed to 0.7% year-over-year in March from 1% growth in February, versus consensus expectations for it to be unchanged.

Meanwhile, PPI fell 2.5% in March after declining 1.4% the month before. This was in line with expectations.

On home shores, the latest figures from the British Retail Consortium and KPMG showed that total retail sales rose 5.1% in March compared to the same month last year, down from 5.2% in February.

BRC chief executive Helen Dickinson said: "While the wettest March in over forty years dampened sales growth for fashion, gardening and DIY products, Mother’s Day brightened up sales for the month. Stores were given an extra boost, as last-minute shoppers dashed to their local high streets and shopping centres to purchase jewellery, fragrances and flowers."

In equity markets, Harbour Energy and BP have signed a deal to develop the Viking carbon capture transportation and storage project in the Humber region of north-east England, using depleted offshore gas fields.

Under the terms of the agreement, Harbour will continue as operator of the project with a 60% interest and BP acquiring a 40% non-operated stake.

Elsewhere, Glencore rallied following a report that the company’s chief executive Gary Nagle plans to meet with some of Teck Resources’ Canadian shareholders in Toronto this week to personally lobby them for support of its proposed takeover of the copper and zinc miner.

Cineworld tumbled after saying it had filed a plan for reorganisation with the US Bankruptcy Court that does not provide any recovery for its existing shareholders.