London open: Shares rise despite mixed Chinese trade data
Stocks started the day slightly higher despite the release of weaker than expected Chinese trade data as investors looked ahead to some key US bank earnings reports and a barrage of economic data.
As of 0840 GMT the Footsie was trading 0.37% higher at 7,319.34.
Asia´s largest economy saw its net exports fall from $44.2bn in November to $40.8bn in December.
In US dollar terms, exports declined by 6.1% year-on-year following a drop of 1.6% in the month before (consensus: -4.0%), with November´s print having been revised lower from an initial reading of +0.1%.
Imports on the other hand rose by 3.1%, which was also down from the 4.7% clip recorded in November but nevertheless better than the 2.7% increase which had been expected.
According to Julian Evans-Pritchard, China economist at Capital Economics, shipments to developed economies "held up well" last month while those to emerging markets slowed.
"Looking ahead, it’s hard to see conditions becoming much more favourable to Chinese trade than they already are. Further upside to economic activity, both in China and abroad, is probably now limited given declines in trend growth. Instead, the risks to trade lie to the downside – the likelihood of a damaging trade spat between China and the US has risen in recent weeks following Trump’s appointment of hardliners to lead US trade policy, " Evans-Pritchard said.
On the data front, the Bank of England credit conditions survey is at 0930 GMT. In the US, retail sales and the producer price index are at 1330 GMT, while the Michigan consumer sentiment index and business inventories are at 1500 GMT.
Earnings are due in the US later from banking heavyweights JP Morgan, Bank of America and Wells Fargo.
The President of the Federal Reserve bank of Philadelphia, Patrick Harker, was also due to take to the podium at 14:30 GMT. The day before he indicated the US central bank might be able to start considering stopping balance sheet reinvestment followed by beginning to unwind its balance sheet once its main policy rate hits 1.0%.
In UK corporate news, Irish building materials company Grafton Group’s revenue rose as it expanded the Selco merchanting brand in the UK.
Revenue surged 13.4% in the year ended 31 December to £2.51bn, compared to last year, or 10.4% in constant currency.
Mitchells & Butlers posted a first quarter trading statement covering the 15 weeks to 7 January on Friday, with like-for-like sales growth for the year-to-date improving to 1.7%.
The FTSE 250 firm said trading over the festive period was particularly strong across all brands, with like-for-like sales growth of 4.7% for the four weeks to 7 January. Total sales increased by 2.3% in the year-to-date.
Estate agent Countrywide reported a small increase in total group income for the year to the end of December as it said earnings are expected to be in line with the current range of market expectations amid a challenging market and a slowdown in London.
Total group income for the year was about £737m, up a touch from £734m in 2015, with income for the fourth quarter of £179m versus £196m in the same period a year ago.
Equipment rental company Lavendon expects revenues to be ahead of expectations due to a “strong” trading performance in 2016 and the weak pound, but it remained cautious over the UK’s economic outlook.
The company saw “strong” rental revenue growth in 2016 due to investment in an additional fleet and improved operational processes, which has driven increased profitability and improved margins.
Market Movers
FTSE 100 (UKX) 7,325.07 0.45%
FTSE 250 (MCX) 18,358.25 0.30%
techMARK (TASX) 3,416.08 0.44%
FTSE 100 - Risers
ITV (ITV) 207.80p 2.36%
Kingfisher (KGF) 351.00p 1.98%
Whitbread (WTB) 4,108.00p 1.76%
International Consolidated Airlines Group SA (CDI) (IAG) 487.40p 1.71%
Barratt Developments (BDEV) 505.50p 1.51%
Schroders (SDR) 3,052.00p 1.46%
Dixons Carphone (DC.) 351.80p 1.44%
Old Mutual (OML) 214.30p 1.37%
Anglo American (AAL) 1,327.50p 1.30%
Royal Bank of Scotland Group (RBS) 221.30p 1.28%
FTSE 100 - Fallers
Fresnillo (FRES) 1,380.00p -2.95%
Smurfit Kappa Group (SKG) 2,132.00p -0.98%
Randgold Resources Ltd. (RRS) 6,735.00p -0.88%
Rolls-Royce Holdings (RR.) 672.00p -0.74%
BAE Systems (BA.) 613.00p -0.73%
Rio Tinto (RIO) 3,388.50p -0.47%
Micro Focus International (MCRO) 2,138.00p -0.42%
Intertek Group (ITRK) 3,537.00p -0.37%
Hammerson (HMSO) 565.00p -0.35%
Bunzl (BNZL) 2,120.00p -0.33%
FTSE 250 - Risers
SIG (SHI) 104.00p 10.87%
Mitchells & Butlers (MAB) 274.50p 5.50%
Grafton Group Units (GFTU) 567.50p 5.00%
Travis Perkins (TPK) 1,470.00p 3.38%
International Personal Finance (IPF) 169.10p 3.24%
Ladbrokes Coral Group (LCL) 121.80p 2.35%
Redefine International (RDI) 39.89p 2.23%
Ocado Group (OCDO) 274.10p 2.01%
Genus (GNS) 1,761.00p 1.79%
Indivior (INDV) 307.60p 1.79%
FTSE 250 - Fallers
Dunelm Group (DNLM) 709.00p -4.45%
Pennon Group (PNN) 785.50p -2.90%
Euromoney Institutional Investor (ERM) 1,149.00p -2.21%
Kaz Minerals (KAZ) 423.00p -1.88%
Capital & Counties Properties (CAPC) 277.30p -1.88%
Hunting (HTG) 626.00p -1.80%
NMC Health (NMC) 1,570.00p -1.75%
Jupiter Fund Management (JUP) 410.20p -1.39%
Polymetal International (POLY) 924.50p -1.33%
Drax Group (DRX) 376.20p -1.26%