London open: Stocks recover after Monday's losses
London stocks rose in early trade on Tuesday, recovering some ground following heavy losses in the previous session on the back of Covid concerns.
At 0855 BST, the FTSE 100 was up 1.1% at 6,919.08.
Richard Hunter, head of markets at Interactive Investor, said: "The opening of trade in the UK reflects something of a relief rally, with the possibility that investors are seeking buying opportunities given what may have been a slight overshoot of negative sentiment. Even so, it will be some weeks for the effects of the full easing of restrictions in the UK to become apparent.
"As such, this may be a time to tread carefully until such time as the variant can be stopped in its tracks, thus allowing the full return to some kind of normality - and economic recovery - to resume."
In equity markets, stocks that were hit hardest on Monday were among the best performers. Engine maker Rolls-Royce, InterContinental Hotels, broadcaster ITV, Premier Inn owner Whitbread, Cineworld, Tui and easyJet were all higher.
InterContinental Hotels was also boosted by an upgrade to ‘buy’ at Stifel, while easyJet was in focus after the budget airline said it had reduced cash burn amid continuing Covid restrictions as it reported a £318m third-quarter loss.
The loss for the three months to June 30 compared with a loss of £346.8m last year. EasyJet said cash burn came in at £55m a week while revenue rose to £212.9m from £7.2m in 2020.
Elsewhere, Transact owner IntegraFin gained after it said third-quarter funds under direction passed £50bn for the first time amid positive equity markets, rising 7.2% over the previous quarter.
Anglo American rallied after it reported a 20% rise in second-quarter production, driven by strong output in diamonds and platinum, despite operations running at 95% of normal capacity because of Covid-19 disruptions.
BHP was also up after saying it was in "great shape" as the miner achieved record production at iron ore, coal, and copper and gold assets during the last financial year.
Morrisons was in the spotlight as it emerged that US private equity firm Apollo Global Management was in talks with Fortress Investment Group to join its bid for the supermarket chain. Apollo said it would not make an offer for Morrisons on its own.
Market Movers
FTSE 100 (UKX) 6,919.08 1.09%
FTSE 250 (MCX) 22,076.58 0.62%
techMARK (TASX) 4,302.83 0.59%
FTSE 100 - Risers
Antofagasta (ANTO) 1,375.00p 2.50%
Pershing Square Holdings Ltd NPV (PSH) 2,560.00p 2.40%
Evraz (EVR) 592.00p 2.32%
ITV (ITV) 115.60p 2.08%
Legal & General Group (LGEN) 255.80p 2.08%
Anglo American (AAL) 2,835.50p 2.00%
SSE (SSE) 1,511.00p 1.99%
British Land Company (BLND) 492.00p 1.97%
Informa (INF) 484.50p 1.94%
BP (BP.) 283.75p 1.90%
FTSE 100 - Fallers
Just Eat Takeaway.Com N.V. (CDI) (JET) 5,893.00p -2.34%
Avast (AVST) 598.00p -1.09%
Intertek Group (ITRK) 5,446.00p -0.62%
London Stock Exchange Group (LSEG) 7,556.00p -0.58%
Sage Group (SGE) 687.60p -0.26%
Bunzl (BNZL) 2,586.00p -0.12%
International Consolidated Airlines Group SA (CDI) (IAG) 158.98p -0.01%
Rentokil Initial (RTO) 517.00p 0.00%
Aveva Group (AVV) 3,860.00p 0.00%
B&M European Value Retail S.A. (DI) (BME) 558.20p 0.07%
FTSE 250 - Risers
Cineworld Group (CINE) 59.76p 5.58%
IntegraFin Holding (IHP) 523.50p 3.77%
TUI AG Reg Shs (DI) (TUI) 316.70p 2.59%
OSB Group (OSB) 446.60p 2.29%
Elementis (ELM) 148.00p 2.28%
IWG (IWG) 301.90p 2.27%
Tullow Oil (TLW) 44.59p 2.20%
Wood Group (John) (WG.) 206.90p 2.17%
Ferrexpo (FXPO) 427.40p 2.05%
easyJet (EZJ) 785.80p 2.05%
FTSE 250 - Fallers
Spire Healthcare Group (SPI) 211.50p -2.98%
Just Eat Takeaway.Com N.V. (CDI) (JET) 5,893.00p -2.34%
Aston Martin Lagonda Global Holdings (AML) 1,707.50p -0.99%
Computacenter (CCC) 2,486.00p -0.80%
Kainos Group (KNOS) 1,545.00p -0.77%
Balfour Beatty (BBY) 291.80p -0.68%
Bytes Technology Group (BYIT) 427.20p -0.65%
Dr. Martens (DOCS) 448.00p -0.62%
Premier Foods (PFD) 101.00p -0.59%
Dechra Pharmaceuticals (DPH) 4,752.00p -0.59%