London open: Stocks start on frontfoot as PBoC flags additional stimulus

London stocks gained on Friday as China’s central bank hinted at the prospect of further stimulus measures to lift the country´s flagging economy.

The People’s Bank of China Governor Zhou Xiaochuan said there were more tools in the central bank’s policy to tackle the nation’s slowdown.

“While the reform direction is clear, managing the reform pace will need windows (of opportunity) and conditions ... The pace will vary, but the reform will be set to continue and the direction is not changed,” Zhou said at a conference held by the Institute of International Finance in Shanghai in conjunction with a G20 meeting of central bank governors and finance ministers.

Meanwhile, investors shrugged off a worse than expected survey from GfK on UK consumer confidence. The index measuring sentiment fell to 0 in February from 4 in January, missing analysts’ estimates of 3.

Other economic data releases still to come include Eurozone gross domestic product at 1000 GMT, Eurozone economic confidence at 1000 GMT, US GDP at 1330 GMT, US personal consumption figures at 1500 GMT, and the University of Michigan’s consumer confidence survey at 1500 GMT.

Oil prices rebounded with Brent crude up 0.56% to $35.49 per barrel and West Texas Intermediate up 1.07% to $33.43 per barrel at 0921 GMT.

In company news, Royal Bank of Scotland’s shares advanced after narrowing its full year loss to £1.98bn in 2015 from £3.47bn the previous year despite increased litigation and conduct costs.

BHP Billiton rallied as it denied reports it has reached a settlement with Brazilian authorities over the Samarco mine disaster. In early November, a tailings dam burst at the mine in Brazil's Minais Gerais region, killing 19 people in the resulting mudslides.