London open: FTSE rises as energy, mining stocks rally
London stocks rose in early trade on Wednesday, underpinned by a strong showing in the energy and mining sectors, as investors eyed the latest US initial jobless claims and GDP data.
At 0900 GMT, the FTSE 100 was up 0.5% at 7,305.81.
Victoria Scholar, head of investment at Interactive Investor, said: "European markets are enjoying a reprieve, snapping a four-day losing streak with oil & gas and technology leading the gains.
"The FTSE 100 in inching closer to key resistance at 7,300 with Intertek’s trading statement lifting shares to the top of the basket. Investors are weighing up a deteriorating picture for Covid cases in Europe against a revival in bullish sentiment in the oil markets."
Scholar also noted that US President Biden’s efforts to curtail the recent oil market rally by increasing supply to the market has in fact had the opposite effect.
"After mobilising emergency reserves, Brent saw its biggest percentage gain since August, rallying by over 3%. Biden’s decision to release 50m barrels from December was sharply below expectations and certainly does not go far enough to address the imbalance between demand and supply. The shortfall in supply has lifted brent for the fourth consecutive session, rallying by more than 6% to push above resistance at $80 and is potentially on track to test the October highs once again around $85 a barrel."
Oil giants Shell and BP rallied along with oil prices, while miners gained in tandem with metals prices.
Elsewhere, Intertek pushed higher after saying it was it was on track for solid annual growth as the product testing company reported revenue up 6.7% in the most recent four-month period.
On the downside, Entain and Flutter lost ground following a Telegraph report suggesting that gamblers could be limited to a maximum £2 bet online and £100 spending a month.
Genus tumbled as the animal genetics company said that based on current trading, especially in China, pre-tax profit for 2022 was set to be "moderately lower" than its previous expectation.
Brewin Dolphin slid even as the wealth manager reported record full-year discretionary fund inflows.
Market Movers
FTSE 100 (UKX) 7,305.81 0.54%
FTSE 250 (MCX) 23,260.61 0.17%
techMARK (TASX) 4,477.54 -0.28%
FTSE 100 - Risers
Intertek Group (ITRK) 5,402.00p 4.69%
BHP Group (BHP) 2,042.50p 2.07%
Experian (EXPN) 3,402.00p 1.98%
CRH (CDI) (CRH) 3,855.00p 1.90%
BP (BP.) 345.10p 1.68%
Land Securities Group (LAND) 752.00p 1.57%
Anglo American (AAL) 2,922.50p 1.51%
Rio Tinto (RIO) 4,733.00p 1.34%
Royal Dutch Shell 'B' (RDSB) 1,660.20p 1.31%
Glencore (GLEN) 380.20p 1.21%
FTSE 100 - Fallers
Entain (ENT) 1,846.00p -2.07%
Flutter Entertainment (CDI) (FLTR) 10,905.00p -1.22%
International Consolidated Airlines Group SA (CDI) (IAG) 150.26p -0.79%
Ocado Group (OCDO) 1,790.00p -0.78%
Aveva Group (AVV) 3,336.00p -0.68%
InterContinental Hotels Group (IHG) 4,899.00p -0.65%
Imperial Brands (IMB) 1,610.00p -0.56%
Next (NXT) 8,148.00p -0.46%
Severn Trent (SVT) 2,802.00p -0.46%
Rightmove (RMV) 748.00p -0.45%
FTSE 250 - Risers
Hochschild Mining (HOC) 119.20p 4.20%
Trustpilot Group (TRST) 292.60p 2.16%
Worldwide Healthcare Trust (WWH) 3,645.00p 1.82%
Harbour Energy (HBR) 421.20p 1.79%
LXI Reit (LXI) 150.00p 1.76%
Howden Joinery Group (HWDN) 918.60p 1.73%
Big Yellow Group (BYG) 1,608.00p 1.71%
Shaftesbury (SHB) 647.50p 1.65%
XP Power Ltd. (DI) (XPP) 5,340.00p 1.52%
Tyman (TYMN) 406.00p 1.50%
FTSE 250 - Fallers
Genus (GNS) 4,712.00p -10.25%
Petropavlovsk (POG) 18.80p -8.29%
Brewin Dolphin Holdings (BRW) 359.50p -4.26%
Virgin Money UK (VMUK) 176.00p -2.95%
Cineworld Group (CINE) 56.00p -2.17%
BH Macro Ltd. GBP Shares (BHMG) 3,760.00p -1.83%
Cranswick (CWK) 3,606.00p -1.80%
Convatec Group (CTEC) 207.20p -1.43%
TUI AG Reg Shs (DI) (TUI) 210.20p -1.36%
Auction Technology Group (ATG) 1,296.00p -1.22%