London open: Stocks gain after better-than-forecast China trade data

China’s trade surplus widened to 382.05bn yuan in December from 343.10bn yuan in November, beating analysts’ forecasts of 338.80bn yuan.

Exports rose unexpectedly by 2.3% in December following a 3.7% dip a month earlier. Economists had pencilled in a 4.1% drop.

Imports declined 4% last month, compared to analysts’ estimates for a 7.9% fall and November’s 5.6% slide.

“These improvements do appear to suggest that while the economy is slowing things may not be nearly as bad as markets had been fretting about and as such we look likely to see a positive open this morning in Europe, even if Chinese stock markets don’t appear to be basking in the improvement that much,” said Michael Hewson, chief market analyst at CMC Markets.

Meanwhile, oil prices will continue to be closely monitored throughout the session after sliding again on Tuesday as analysts downgraded their forecasts. At 0855 GMT, Brent crude rose 2.2% to $31.56 per barrel and West Texas Intermediate increased 2.1% to $31.10 per barrel.

In the Eurozone, industrial production data is due at 1000 GMT, with analysts expecting a 1.3% increase in November output.

The US will see the release of weekly mortgage applications figures at 1200 GMT while Federal Reserve policymaker Eric Rosengren speaks in Iowa at 1730 GMT and the central bank publishes its Beige Book at 1900 GMT.

In company news, oil producers rallied on the uptick in crude prices. BP, Royal Dutch Shell and Tullow Oil were among the risers in morning trade.

Premier Oil’s shares were suspended from trading on Wednesday morning pending the announcement of a potential acquisition of assets which may be classed as a reverse takeover under the Financial Conduct Authority listing rules.

Sainsbury declined after reporting a 0.4% drop in like-for-like retail sales over the festive third quarter. However it was less than the 0.7% forecast, leading the grocer to say that the second half as a whole is likely to be better than the first.

Sports Direct advanced after it snapped up an 11.5% stake in Umbro and Lee Cooper-owner Iconix Brand Group and 2.3% of US retailing giant Dick's Sporting Goods. The group last week warned on profits amid widespread criticism about the treatment of its staff.

Ted Baker jumped after saying sales rose 10% over the eight week Christmas period against a tough trading backdrop and said full year earnings to be in line with expectations. –

Galliford Try was a high riser after the construction group pointed to solid trading across the board in the first half, as its order book rose in an improving market.

Market Movers
techMARK 3,179.21 +0.86%
FTSE 100 5,994.20 +1.10%
FTSE 250 16,780.83 +0.56%

FTSE 100 - Risers
Babcock International Group (BAB) 998.50p +4.61%
Anglo American (AAL) 243.10p +4.56%
St James's Place (STJ) 953.50p +3.87%
Shire Plc (SHP) 4,268.00p +3.74%
BP (BP.) 333.80p +3.31%
Sports Direct International (SPD) 425.00p +3.16%
Tesco (TSCO) 160.00p +3.09%
Glencore (GLEN) 73.98p +2.75%
Aberdeen Asset Management (ADN) 250.40p +2.50%
Royal Dutch Shell 'B' (RDSB) 1,382.50p +2.48%

FTSE 100 - Fallers
Bunzl (BNZL) 1,832.00p -0.87%
Lloyds Banking Group (LLOY) 68.84p -0.66%
Next (NXT) 6,730.00p -0.59%
National Grid (NG.) 943.70p -0.56%
Fresnillo (FRES) 678.00p -0.51%
Imperial Tobacco Group (IMT) 3,579.00p -0.29%
SABMiller (SAB) 4,048.00p -0.26%
Sky (SKY) 1,101.00p -0.18%
BAE Systems (BA.) 521.00p -0.10%

FTSE 250 - Risers
Tullow Oil (TLW) 138.40p +12.43%
Ted Baker (TED) 2,870.00p +6.30%
Ophir Energy (OPHR) 85.10p +4.55%
Amec Foster Wheeler (AMFW) 383.70p +4.38%
Home Retail Group (HOME) 147.90p +4.23%
Vedanta Resources (VED) 242.60p +3.68%
Weir Group (WEIR) 882.00p +3.52%
Petrofac Ltd. (PFC) 689.00p +3.07%
JD Sports Fashion (JD.) 1,047.00p +2.75%
Hays (HAS) 124.50p +2.72%

FTSE 250 - Fallers
Dunelm Group (DNLM) 858.50p -5.14%
Allied Minds (ALM) 345.00p -3.77%
Aldermore Group (ALD) 208.50p -2.48%
Jimmy Choo (CHOO) 131.70p -2.44%
Mitie Group (MTO) 294.50p -2.16%
Euromoney Institutional Investor (ERM) 1,007.00p -1.66%
Woodford Patient Capital Trust (WPCT) 97.00p -1.57%
Millennium & Copthorne Hotels (MLC) 418.50p -1.51%
SSP Group (SSPG) 295.20p -1.47%
CLS Holdings (CLI) 1,760.00p -1.46%

FTSE TechMARK - Risers
Spirent Communications (SPT) 72.00p +3.97%
XP Power Ltd. (DI) (XPP) 1,510.00p +0.94%
Skyepharma (SKP) 398.75p +0.63%

FTSE TechMARK - Fallers
Sarossa (SARS) 1.31p -3.32%
Oxford Biomedica (OXB) 7.70p -1.28%
Consort Medical (CSRT) 1,040.00p -0.29%
KCOM Group (KCOM) 117.25p -0.21%
IShares Euro Gov Bond 7-10YR UCITS ETF (IEGM) € 203.75 -0.05%