London close: Stocks rise, pound stabilises after warning from China

The FTSE 100 ended the session up 0.48% at 7,051.59, and the FTSE 250 was ahead 0.38% at 22,488.73.

Sterling was mixed, last trading flat on the dollar at $1.4150, as it retreated 0.24% against the euro to change hands at €1.1589.

“After a shaky start this morning the pound has stabilised once again, leaving it primed to resume its move back towards the highs of the year,” said IG chief market analyst Chris Beauchamp.

“While Andrew Bailey might have reiterated the ‘transitory’ stance on inflation so beloved of central banks right now he also took the time to remind everyone that Threadneedle Street remains decidedly unconvinced about negative interest rates.

“Taken with the ongoing softer US dollar it looks like the pound has further room to appreciate for the time being.”

Overnight, authorities in Beijing warned against excessive speculation in commodities, saying there would be "zero tolerance" for monopolies in spot and futures markets, and for speculation and hoarding.

“Instead of tanking, the FTSE’s sizeable commodity cabal, the index’s oil and mining stocks were broadly up on the day, with BHP and Antofagasta the outliers,” said Spreadex analyst Connor Campbell earlier.

He said the FTSE was likely up "on speculation that this Chinese commodity warning could help ease the inflationary pressures” that had spooked the markets so far in 2021.

“It is a very quiet day - and week - all told, especially with Germany and France enjoying a May Bank Holiday," said Campbell.

Several markets across Europe were closed for Whit Monday.

In equity markets, Cineworld gained 3.2% as the movie theatre operator reported a strong opening weekend in the UK after Covid-19 restrictions were lifted, led by the success of Peter Rabbit 2: The Runaway.

Mr Kipling owner Premier Foods jumped 5.91% after Shore Capital reiterated its ‘buy’ rating on the stock.

On the downside, Kainos reversed earlier gains to close down 1.77%, even after it said annual profit had more than doubled to a record as organisations invested in its digital operations during the pandemic.

Doorstep lender Provident Financial slumped 2.41% amid expectations it will be ejected from the FTSE 250 in the next reshuffle.

Market Movers

FTSE 100 (UKX) 7,051.59 0.48%
FTSE 250 (MCX) 22,483.73 0.38%
techMARK (TASX) 4,330.15 0.51%

FTSE 100 - Risers

Compass Group (CPG) 1,582.50p 2.79%
Pershing Square Holdings Ltd NPV (PSH) 2,585.00p 2.76%
Entain (ENT) 1,620.50p 2.25%
Flutter Entertainment (CDI) (FLTR) 13,245.00p 2.09%
InterContinental Hotels Group (IHG) 4,931.00p 2.03%
Intermediate Capital Group (ICP) 2,068.00p 1.92%
Whitbread (WTB) 3,153.00p 1.91%
Vodafone Group (VOD) 129.38p 1.49%
British Land Company (BLND) 520.20p 1.48%
Spirax-Sarco Engineering (SPX) 12,425.00p 1.43%

FTSE 100 - Fallers

Fresnillo (FRES) 867.60p -1.63%
Admiral Group (ADM) 2,918.00p -1.02%
Antofagasta (ANTO) 1,525.00p -0.91%
BHP Group (BHP) 2,102.50p -0.66%
Imperial Brands (IMB) 1,658.50p -0.39%
Barratt Developments (BDEV) 750.80p -0.32%
United Utilities Group (UU.) 989.60p -0.28%
Evraz (EVR) 665.80p -0.24%
Severn Trent (SVT) 2,488.00p -0.24%
Standard Chartered (STAN) 506.20p -0.20%

FTSE 250 - Risers

Rank Group (RNK) 196.20p 7.80%
Premier Foods (PFD) 107.60p 5.91%
Mitie Group (MTO) 69.50p 5.62%
Restaurant Group (RTN) 128.40p 5.25%
Royal Mail (RMG) 550.00p 4.48%
Dr. Martens (DOCS) 497.60p 3.99%
Syncona Limited NPV (SYNC) 215.00p 3.86%
National Express Group (NEX) 295.00p 3.80%
Wetherspoon (J.D.) (JDW) 1,386.00p 3.66%
Micro Focus International (MCRO) 506.40p 3.49%

FTSE 250 - Fallers

Trainline (TRN) 297.00p -5.53%
Energean (ENOG) 762.50p -3.79%
Essentra (ESNT) 303.00p -3.63%
Tullow Oil (TLW) 50.54p -3.33%
Pagegroup (PAGE) 574.50p -2.70%
Helios Towers (HTWS) 160.60p -2.57%
NCC Group (NCC) 290.00p -2.52%
Future (FUTR) 2,720.00p -2.51%
Bytes Technology Group (BYIT) 513.00p -2.48%
PureTech Health (PRTC) 358.00p -2.44%