London midday: Shares extend gains ahead of Fed minutes
London stocks rose in early trade on Wednesday, taking their cue from positive US and Asian sessions, as investors eyed the latest readings on the UK manufacturing and services sector, and minutes form the Federal Reserve.
At 1156 GMT, FTSE 100 was up 0.58% at 7,496.
Richard Hunter, head of markets at Interactive Investor, said: "The optimists were back in the driving seat, amid light volumes in a shortened US trading week and ahead of the latest Federal Reserve minutes.
"In a slight change to sentiment, there are hopes that the aggressive Fed rate hikes so far means that the terminal rate will be hit sooner, which is currently estimated to be around 5% from the current 4%. Alongside comments from some Fed members suggesting that reduced hikes may be possible if a recently promising inflation number is the beginning of a downward trend, investors sought solace in the fact that the end of the year could signal the start of a slowdown for both.
"Asian markets were also generally positive, despite some concerning Covid-19 developments in China. The authorities are tilting towards a reiteration of another tight lockdown policy after the first deaths in the mainland were reported at the weekend and with case numbers still steadily rising."
On home shores, the S&P Global/CIPS manufacturing and services PMIs for November showed the UK economy continued to struggle.
The Composite Output Index came in at 48.3, broadly unchanged on October’s 48.2. It was, however, above consensus, for around 47.5. Within that, the manufacturing output index nudged only marginally higher at 45.4, from last month’s 45.0, while manufacturing PMI was unchanged at 46.2. The services PMI business activity index was also unchanged, at 48.8.
In equity markets, miners were among the top performers, with Glencore, Anglo American and Antofagasta all up. Glencore was also lifted by an upgrade to 'outperform' by analysts at Bernstein.
Drinks maker Britvic fizzed higher as it posted a rise in full-year profit and revenue, hailing growth in both the retail and hospitality channels, which benefited from good weather over the summer and no lockdown restrictions.
Rotork advanced after it reported a jump in revenues for the four months to 30 October and backed its full-year profit expectations.
On the downside, United Utilities slumped after saying that half-year earnings dipped, hit by surging inflation and the long dry summer.
Pets at Home also fell after it backed its full-year profit guidance but reported a drop in interim profit as energy and freight costs rose.
Industrial thread maker Coats lost ground even as it posted a rise in revenues and held full-year guidance, despite strengthening forex headwinds.
Market Movers
FTSE 100 (UKX) 7,471.37 0.25%
FTSE 250 (MCX) 19,415.74 -0.03%
techMARK (TASX) 4,409.47 -0.22%
FTSE 100 - Risers
Glencore (GLEN) 533.90p 3.69%
Flutter Entertainment (CDI) (FLTR) 11,930.00p 3.65%
Whitbread (WTB) 2,601.00p 2.44%
Intermediate Capital Group (ICP) 1,184.50p 2.38%
Entain (ENT) 1,392.50p 2.01%
Hargreaves Lansdown (HL.) 823.80p 1.91%
Severn Trent (SVT) 2,790.00p 1.86%
Associated British Foods (ABF) 1,547.50p 1.81%
3i Group (III) 1,341.50p 1.59%
Frasers Group (FRAS) 865.50p 1.58%
FTSE 100 - Fallers
Dechra Pharmaceuticals (DPH) 2,678.00p -2.12%
SEGRO (SGRO) 805.60p -1.71%
Intertek Group (ITRK) 3,852.00p -1.28%
Admiral Group (ADM) 2,069.00p -0.91%
Vodafone Group (VOD) 94.21p -0.83%
Tesco (TSCO) 233.20p -0.77%
Harbour Energy (HBR) 318.30p -0.72%
Shell (SHEL) 2,365.50p -0.71%
Spirax-Sarco Engineering (SPX) 11,265.00p -0.71%
GSK (GSK) 1,401.20p -0.60%
FTSE 250 - Risers
Discoverie Group (DSCV) 912.00p 4.71%
Virgin Money UK (VMUK) 169.10p 3.65%
Britvic (BVIC) 795.00p 3.38%
Rotork (ROR) 295.20p 3.36%
Telecom Plus (TEP) 2,420.00p 3.20%
Wizz Air Holdings (WIZZ) 2,074.00p 3.08%
Aston Martin Lagonda Global Holdings (AML) 125.60p 2.99%
Watches of Switzerland Group (WOSG) 1,022.00p 2.46%
Abrdn (ABDN) 202.80p 2.17%
Bank of Georgia Group (BGEO) 2,540.00p 1.80%
FTSE 250 - Fallers
Home Reit (HOME) 54.50p -29.59%
Petershill Partners (PHLL) 173.00p -4.10%
Pets at Home Group (PETS) 292.00p -3.95%
Balanced Commercial Property Trust Limited (BCPT) 89.80p -3.65%
Genus (GNS) 3,000.00p -3.35%
TI Fluid Systems (TIFS) 130.40p -3.12%
Vietnam Enterprise Investments (DI) (VEIL) 521.00p -2.80%
Coats Group (COA) 66.70p -2.63%
Warehouse Reit (WHR) 111.80p -2.61%
ASOS (ASC) 633.50p -2.54%