London open: Stocks recover after Tuesday's losses; Mondi jumps

At 0835 BST, the FTSE 100 was up 0.5% at 8,227.41, having closed down 1.4% on Tuesday, with miners in particular under the cosh as investors were left disappointed that China did not announce further stimulus measures.

Stocks in mainland China and Hong Kong slid overnight after China’s top economic planner, the National Development and Reform Commission, failed to announce more stimulus at a press conference.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "Investors are searching for a sense of direction amid a cacophony of developments, as harsh geopolitical winds swirl and a fierce storm barrels towards Florida. Oil prices have tracked higher again, as hopes for a ceasefire between Israel and Hezbollah fade, while Hurricane Milton threatens to disrupt energy supplies, with some pipelines and delivery terminals in Tampa already shut.

"Brent Crude is currently trading around $77.5 a barrel. Prices had dipped sharply yesterday, amid hopes the Hezbollah leadership would not tie negotiations for a ceasefire to what’s happening in Gaza. But given how previous deals in stopping violence in the Middle East have seemed so close, but have ultimately collapsed, it’s not surprising that confidence in agreeing even a limited break in the war is waning, prompting supply concerns to swirl again.

"The FTSE 100 is set to gain back a little ground, following yesterday’s losses, but caution is in the air following another highly volatile session for indices in Asia. The wave of enthusiasm which greeted the kitchen sink stimulus from the People’s Bank of China is ebbing away, given the lack of detail for further fiscal stimulus. Banks in China might be ready to lend, with lower rates and deposit requirements on offer, but if the demand isn’t there, it’s still set to hold back an economic rebound. Investors had been hoping for more details on an expected fiscal stimulus, hoping tax breaks would reinvigorate consumers and companies to borrow, but the vague plan put on the table yesterday by authorities disappointed."

In equity markets, Mondi jumped to the top of the FTSE 100 after the paper and packaging firm announced the acquisition of the Western European corrugated converting and solid board assets of Schumacher Packaging for an undisclosed sum.

Mondi said the deal will expand its corrugated footprint in key markets and add complementary fibre-based products focused on ecommerce and FMCG to enhance its existing offering.

United Utilities was boosted by an upgrade to ‘outperform’ from ‘sector perform’ at RBC Capital Markets.

Rio Tinto was a little weaker after saying it had struck a deal to buy Arcadium Lithium for $6.7bn, placing it among the main producers of the key component of electric vehicle batteries. The mining giant said it was offering $5.85 a share in cash - a 90% premium to the stock’s closing price at the end of last week.

CMC Markets surged as it said net operating income for the first half was expected to have risen 45% on the prior year to £180m and that it expects to have swung to a pre-tax profit of £51m from a loss of £2m.

Market Movers

FTSE 100 (UKX) 8,227.41 0.45%
FTSE 250 (MCX) 20,675.11 0.21%
techMARK (TASX) 4,792.72 0.56%

FTSE 100 - Risers

Mondi (MNDI) 1,442.50p 2.78%
United Utilities Group (UU.) 1,028.00p 2.19%
Smurfit Westrock (DI) (SWR) 3,527.00p 1.67%
Hikma Pharmaceuticals (HIK) 1,928.00p 1.47%
SSE (SSE) 1,841.00p 1.24%
Severn Trent (SVT) 2,544.00p 1.23%
Spirax Group (SPX) 7,030.00p 1.22%
WPP (WPP) 777.80p 1.09%
National Grid (NG.) 1,003.00p 1.05%
Croda International (CRDA) 4,204.00p 1.03%

FTSE 100 - Fallers

Prudential (PRU) 676.60p -1.51%
Vistry Group (VTY) 949.00p -1.50%
Rio Tinto (RIO) 5,014.00p -0.59%
F&C Investment Trust (FCIT) 1,034.00p -0.58%
NATWEST GROUP (NWG) 346.70p -0.55%
Rolls-Royce Holdings (RR.) 525.00p -0.49%
Intermediate Capital Group (ICG) 2,084.00p -0.38%
Scottish Mortgage Inv Trust (SMT) 845.80p -0.38%
Melrose Industries (MRO) 433.80p -0.21%
Beazley (BEZ) 738.00p -0.14%

FTSE 250 - Risers

CMC Markets (CMCX) 324.00p 6.23%
NCC Group (NCC) 176.80p 5.62%
IntegraFin Holding (IHP) 361.00p 2.85%
Genuit Group (GEN) 478.00p 2.80%
Morgan Sindall Group (MGNS) 3,185.00p 2.74%
Marshalls (MSLH) 324.50p 2.53%
Workspace Group (WKP) 638.00p 2.41%
Hochschild Mining (HOC) 184.40p 2.33%
Clarkson (CKN) 3,765.00p 2.31%
Safestore Holdings (SAFE) 868.00p 2.00%

FTSE 250 - Fallers

Ithaca Energy (ITH) 101.60p -3.42%
Fidelity China Special Situations (FCSS) 217.00p -3.13%
Essentra (ESNT) 147.00p -2.26%
Allianz Technology Trust (ATT) 357.00p -2.06%
Indivior (INDV) 737.00p -1.60%
Grafton Group Ut (CDI) (GFTU) 1,010.40p -1.33%
JPMorgan Japanese Inv Trust (JFJ) 546.00p -1.27%
Telecom Plus (TEP) 1,780.00p -1.22%
Vesuvius (VSVS) 382.00p -1.16%
Asia Dragon Trust (DGN) 431.00p -1.15%