London open: Stocks rise as miners rally on China data

At 0830 BST, the FTSE 100 was up 0.3% at 7,687.09.

Figures out earlier showed that activity in China’s services sector grew at the fastest pace in two and a half years in March.

The Caixin services purchasing managers’ index rose to 57.8 from 55.0 in February, coming in ahead of expectations for it to be unchanged. This marked the third increase in a row and the fastest rate of expansion since November 2020.

Increased activity levels were linked to sustained improvements in operating conditions and new order intakes following the recent easing of Covid measures. Caixin said new export business expanded at the quickest rate on record.

Dr. Wang Zhe, senior economist at Caixin Insight Group, said: "Services supply and demand expanded rapidly last month. The market returned to normal quickly after the most recent wave of Covid-19 infections subsided, fuelling both supply and demand. In March, the gauges for business activity and total new business continued to rise within expansionary territory, both reaching their highest level since November 2020.

"Moreover, the easing of international travel restrictions boosted services exports, with the measure for new export orders logging the highest reading since records began in September 2014."

On home shores, data from Halifax showed that UK house prices increased for a third consecutive month in a row in March.

House prices rose by 0.8% from February, taking the average sale price to £287,880 in March.

However, this increase was slower than the 1.2% recorded in February. On an annual basis, the rate of price growth slowed to 1.6% from 2.1% recorded in the previous month and the lowest since October 2019.

Kim Kinnaird, director, Halifax Mortgages, said that overall, the latest figures "continue to suggest relative stability in the housing market at the start of 2023 and align with many other recent industry surveys and data".

"This has been characterised by a partial recovery in activity and transactions, especially when compared to the significant drops seen at the end of last year, with latest Bank of England data showing mortgage approvals rising for the first time in six months."

She said the main factor behind the improved picture has been an easing of mortgage rates.

Looking ahead, all eyes will be on Friday’s US non-farm payrolls report.

Richard Hunter, head of markets at Interactive Investor, said: "The expectation is for 240,000 jobs to have been added in March, following a blowout number in January and a higher than expected 311,000 number in February.

"The closure of the market on Friday means that equity traders will be unable to react to the release until next week which, coupled with the long weekend, has seen some traders squaring positions and being unwilling to open new ones given the extended break."

In equity markets, miners rallied as copper prices rose and after the upbeat Chinese data, with Anglo American, Antofagasta, Rio and Glencore all up.

Oil giant Shell was also in the black after a first-quarter update.

Ferrexpo gained after saying it more than doubled iron ore pellet production in the first quarter, driven by an improvement in the supply of electricity to operations in Ukraine, which enabled the restart of a second pelletiser line in late February 2023.

On the downside, Barratt Developments, Reckitt, Rentokil, ConvaTec, Smiths Group, Savills, Man Group, and Howden Joinery all lost ground as they traded without entitlement to the dividend.

Market Movers

FTSE 100 (UKX) 7,687.09 0.32%
FTSE 250 (MCX) 18,557.76 -0.23%
techMARK (TASX) 4,527.39 0.07%

FTSE 100 - Risers

Anglo American (AAL) 2,662.00p 1.97%
Shell (SHEL) 2,405.00p 1.78%
Glencore (GLEN) 464.75p 1.75%
M&G (MNG) 192.90p 1.61%
Antofagasta (ANTO) 1,506.00p 1.14%
Rio Tinto (RIO) 5,340.00p 1.08%
Croda International (CRDA) 6,422.00p 1.04%
Entain (ENT) 1,266.50p 1.00%
Persimmon (PSN) 1,216.00p 1.00%
Legal & General Group (LGEN) 237.10p 0.98%

FTSE 100 - Fallers

Melrose Industries (MRO) 160.65p -1.95%
Barratt Developments (BDEV) 444.20p -1.70%
Reckitt Benckiser Group (RKT) 6,230.00p -1.67%
Rentokil Initial (RTO) 585.20p -1.45%
Convatec Group (CTEC) 224.00p -1.32%
Johnson Matthey (JMAT) 1,889.00p -0.74%
Pearson (PSON) 829.20p -0.53%
Smiths Group (SMIN) 1,658.00p -0.51%
HSBC Holdings (HSBA) 551.50p -0.49%
British American Tobacco (BATS) 2,792.50p -0.45%

FTSE 250 - Risers

SThree (STEM) 415.00p 3.36%
Grafton Group Ut (CDI) (GFTU) 850.60p 2.52%
Urban Logistics Reit (SHED) 134.80p 1.97%
Molten Ventures (GROW) 265.00p 1.69%
Ithaca Energy (ITH) 157.00p 1.68%
IP Group (IPO) 55.80p 1.64%
BlackRock World Mining Trust (BRWM) 660.00p 1.54%
Tritax Eurobox (GBP) (EBOX) 62.00p 1.47%
Wood Group (John) (WG.) 217.40p 1.40%
WH Smith (SMWH) 1,459.00p 1.32%

FTSE 250 - Fallers

Premier Foods (PFD) 114.00p -4.84%
FDM Group (Holdings) (FDM) 667.00p -3.61%
Savills (SVS) 923.00p -3.50%
Man Group (EMG) 208.50p -3.43%
IWG (IWG) 156.50p -2.98%
Morgan Advanced Materials (MGAM) 263.50p -2.59%
Bank of Georgia Group (BGEO) 2,685.00p -2.54%
Indivior (INDV) 1,397.00p -2.38%
Lancashire Holdings Limited (LRE) 539.00p -2.36%
Howden Joinery Group (HWDN) 650.80p -2.08%