London open: Stocks rise as investors eye UK manufacturing data
London stocks rose in early trade on Wednesday, taking their cue from a positive Asian session, as investors eyed the latest reading on the UK manufacturing sector.
At 0845 BST, the FTSE 100 was up 0.7% at 7,167.89.
Investors were mulling the latest figures out of China. According to a private gauge released earlier, activity in the country’s manufacturing sector contracted in August for the first time since April 2020.
The Caixin manufacturing purchasing managers’ index fell to 49.2 from 50.3 in July, coming in below consensus expectations for a reading of 50.1. A reading above 50 signals expansion, while a reading below indicates contraction.
The country’s official manufacturing PMI, which was released on Tuesday, showed a drop to 50.1 in August from 50.4 in July.
On home shores, a survey from Nationwide showed house prices rose 2.1% in August following a 0.6% decline in July. This was the second-largest jump in 15 years. On the year, house prices grew 11%, up from 10.5% in July.
Nationwide chief economist Robert Gardner said: "Underlying demand is likely to remain solid in the near term. Consumer confidence has rebounded in recent months while borrowing costs remain low. This, combined with the lack of supply on the market, suggests continued support for house prices. But, as we look towards the end of the year, the outlook is harder to foresee.
"Activity will almost inevitably soften for a period after the stamp duty holiday expires at the end of September, given the incentive for people to bring forward their purchases to avoid the additional tax."
Still to come on the macro front, Markit’s manufacturing PMI for August is at 0930 BST, while the US ADP employment report is at 1315 BST.
In equity markets, 888 Holdings gained as the online betting group reported record interim profits and lifted annual guidance, driven by a spike in volumes during Covid lockdowns and the European football tournament.
Russian gold miner Petropavlovsk was also in the black after saying it swung to a first-half profit.
On the downside, WH Smith slumped after it lifted full-year guidance but warned that 2022 profits were expected to be at the lower end of expectations as the travel sector’s path of recovery from the Covid pandemic remained uncertain.
The newsagent, which operates across airports, train stations and the high street, said group sales in the eight weeks to August 28 were 78% of 2019 levels before the pandemic struck. Total second half sales were at 65% of those from two years ago.
Market Movers
FTSE 100 (UKX) 7,167.89 0.68%
FTSE 250 (MCX) 24,190.27 0.37%
techMARK (TASX) 4,856.36 0.48%
FTSE 100 - Risers
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,714.00p 2.36%
JD Sports Fashion (JD.) 1,031.50p 2.18%
Aviva (AV.) 411.50p 1.83%
Melrose Industries (MRO) 170.74p 1.79%
International Consolidated Airlines Group SA (CDI) (IAG) 162.12p 1.73%
Entain (ENT) 1,964.00p 1.60%
M&G (MNG) 209.20p 1.55%
Diageo (DGE) 3,547.00p 1.52%
Standard Chartered (STAN) 461.40p 1.45%
Intertek Group (ITRK) 5,344.00p 1.40%
FTSE 100 - Fallers
Fresnillo (FRES) 840.00p -1.64%
Prudential (PRU) 1,493.00p -1.45%
Rio Tinto (RIO) 5,312.00p -1.30%
Anglo American (AAL) 3,036.00p -1.08%
Evraz (EVR) 585.40p -0.85%
Croda International (CRDA) 9,076.00p -0.79%
Antofagasta (ANTO) 1,446.00p -0.69%
Pershing Square Holdings Ltd NPV (PSH) 2,605.00p -0.57%
B&M European Value Retail S.A. (DI) (BME) 556.20p -0.50%
Hargreaves Lansdown (HL.) 1,501.50p -0.46%
FTSE 250 - Risers
Tyman (TYMN) 443.50p 6.87%
Harbour Energy (HBR) 370.00p 3.76%
SSP Group (SSPG) 279.60p 2.53%
C&C Group (CDI) (CCR) 252.80p 2.43%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,714.00p 2.36%
HGCapital Trust (HGT) 412.50p 2.10%
Big Yellow Group (BYG) 1,557.00p 2.10%
Frasers Group (FRAS) 683.00p 2.09%
888 Holdings (888) 416.00p 2.06%
Petropavlovsk (POG) 21.40p 1.90%
FTSE 250 - Fallers
WH Smith (SMWH) 1,546.50p -5.24%
Ferrexpo (FXPO) 370.20p -2.68%
PureTech Health (PRTC) 346.00p -1.70%
Avon Protection (AVON) 1,854.00p -1.33%
Unite Group (UTG) 1,208.00p -1.19%
Hays (HAS) 157.70p -0.94%
Inchcape (INCH) 911.50p -0.87%
ICG Enterprise Trust (ICGT) 1,142.00p -0.70%
Moonpig Group (MOON) 384.40p -0.67%
Plus500 Ltd (DI) (PLUS) 1,485.50p -0.60%