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London open: Miners pace gains on China news; easyJet flies higher
London stocks rose in early trade on Wednesday, with miners pacing the gains after China said it will cut the reserve requirement ratio for banks from next month.
At 0850 GMT, the FTSE 100 was up 0.4% at 7,515.27.
Sentiment got a boost after the governor of the People’s Bank of China said the country plans to cut the amount of liquidity that banks are required to hold as reserves early next month as it looks to bolster the economy.
At a press conference in Beijing, Pan Gongsheng said the reserve ratio requirements for banks will be cut by 50 basis points from 5 February, providing 1 trillion yuan in long-term capital.
Still to come on the UK macro front, the S&P Global manufacturing and services PMIs for January are due at 0930 GMT.
In equity markets, heavily-weighted miners jumped on the China news, with Anglo American, Glencore, Antofagasta and Rio Tinto all up. Asia-focused Prudential and Standard Chartered also advanced.
Precious metals miners Endeavour, Fresnillo, Centamin and Hochschild shone.
Budget airline easyJet flew higher as it said it had taken a £40m hit from the Middle East conflict, but that it expects first-half losses to narrow and reported positive booking momentum for the summer.
The airline was forced to suspend flights to Israel and Jordan after the Hamas Islamic group attacked Israel last October, with demand also softening on its routes to Egypt.
Pre-tax losses for the three months to December 31 came in at £126m from £133m a year earlier. Revenues were up 16% to £1.1bn.
TI Fluid Systems rallied as it said full-year results were set to be “slightly ahead” of expectations after a continued strong performance in the fourth quarter.
Diversified Energy recovered some ground, having tumbled on Tuesday after activist investor Snowcap Research said the company may not have enough funds to cover the costs of plugging its inactive wells and that a dividend cut was imminent.
On the downside, Wetherspoons fell even as the pub chain held annual guidance and reported a rise in first-half underlying sales.
Asset manager Abrdn was trading lower as it said it was embarking on a new cost-cutting initiative to save £150m by the end of 2025 and reported net outflows of over £12m in the second half.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Easyjet Plc | +5.47% | +27.80 | 536.00 |
| 2 |  |
Fresnillo Plc | +5.14% | +24.70 | 505.60 |
| 3 |  |
Anglo American Plc | +3.32% | +59.40 | 1,849.00 |
| 4 |  |
Antofagasta Plc | +3.19% | +51.00 | 1,648.00 |
| 5 |  |
Tui Ag | +2.67% | +14.50 | 558.50 |
| 6 |  |
International Consolidated Airlines Group S.a. | +2.60% | +3.85 | 151.90 |
| 7 |  |
Bhp Group Limited | +2.39% | +57.50 | 2,467.50 |
| 8 |  |
Glencore Plc | +2.33% | +9.45 | 414.60 |
| 9 |  |
Rio Tinto Plc | +1.92% | +104.00 | 5,514.00 |
| 10 |  |
Rolls-royce Holdings Plc | +1.92% | +5.80 | 307.60 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Rentokil Initial Plc | -0.85% | -3.40 | 398.90 |
| 2 |  |
3i Group Plc | -0.72% | -17.00 | 2,351.00 |
| 3 |  |
Tesco Plc | -0.50% | -1.50 | 297.30 |
| 4 |  |
Hiscox Ltd | -0.48% | -5.00 | 1,033.00 |
| 5 |  |
Bunzl Plc | -0.38% | -12.00 | 3,166.00 |
| 6 |  |
Unilever Plc | -0.35% | -13.00 | 3,722.00 |
| 7 |  |
Bp Plc | -0.34% | -1.55 | 449.65 |
| 8 |  |
Gsk Plc | -0.28% | -4.40 | 1,549.80 |
| 9 |  |
Aviva Plc | -0.21% | -0.90 | 432.30 |
| 10 |  |
Compass Group Plc | -0.19% | -4.00 | 2,105.00 |
US close: Stocks mixed ahead of key data releases
Wall Street experienced a mixed performance on Tuesday, with its main market indices showing varied results following a record close in the previous session.
Investors were closely monitoring upcoming economic data, including a preliminary reading for fourth-quarter US GDP scheduled for Thursday and key inflation readings set for release on Friday.
The Dow Jones Industrial Average closed with a modest decline of 0.25%, settling at 37,905.45 points.
On the other hand, the S&P 500 index managed to gain 0.29%, reaching 4,864.60 points, and the Nasdaq Composite posted a gain of 0.43% to finish at 15,425.94 points.
In currency markets, the dollar was last down 0.05% on sterling, trading at 78.78p, while it remained steady with no change against the euro at 92.13 euro cents.
The greenback experienced a slight decline of 0.14% on the yen, changing hands at JPY 148.14.
“Traders who were cheering on the market as it rallied to fresh highs now find themselves adopting a more cautious tone as they await Netflix earnings tonight,” said IG chief market analyst Chris Beauchamp.
“As the first of the ‘magnificent seven’ to report, the video-sharing giant will likely have an outsize move on the market in the short-term.
“Having gained 45% since October the stock does look ripe for a little profit-taking, even if the medium-term outlook remains solid.”
RTX and Verison rise, Johnson & Johnson falls back
In equity markets, aerospace company RTX surged 5.33% after it reported fourth-quarter profits and revenues that exceeded expectations, garnering increased investor confidence and interest.
Verizon Communications also recorded an impressive uptick, with its shares rising 6.7% by the close.
Investors were pleased by the telecom company’s latest quarterly subscriber numbers, which contributed to the substantial increase in share value.
On the downside, Johnson & Johnson declined 1.66% despite surpassing analysts’ estimates for its quarterly results.
Wednesday newspaper round-up: Boeing, Hinkley Point C, IDS
Fake reviews and unavoidable hidden online charges – which cost consumers £2.2bn a year – are to be banned under new laws to force businesses to be more clear with shoppers. Under the new rules, which will become law as part of the digital markets, competition and consumers bill currently progressing through parliament, mandatory fees must be included in the headline price or at the start of the shopping process, including booking fees for cinema and train tickets. – Guardian
A nose wheel fell off a Delta Air Lines Boeing 757 passenger jet and rolled away as the plane lined up for takeoff over the weekend from Atlanta’s Hartsfield-Jackson international airport in the US, according to the Federal Aviation Administration (FAA). According to a preliminary FAA notice, none of the 184 passengers or six crew members aboard were hurt in the incident. – Guardian
Hinkley Point C will cost as much as £35bn to complete and will come online up to four years later than planned, its French developer has said. EDF on Tuesday said the cost of building Britain’s first new nuclear power station in a generation had risen by as much as £10bn after delays to construction and inflation to costs. – Telegraph
Treasury officials advised Rishi Sunak that cutting taxes would have little impact on growing the economy and he should instead focus on boosting immigration. According to leaked Treasury documents presented to Mr Sunak’s senior team in late 2022 before he became prime minister, civil servants said personal tax cuts would have a “low impact” on boosting growth despite coming at a “medium fiscal cost”. – Telegraph
The chairman of Royal Mail owner International Distributions Services has argued that a six-day delivery service should not be preserved for “nostalgic” reasons ahead of potential reform of the lossmaking mail operator. On Wednesday Ofcom, the regulator, is expected to release the findings of its review of the universal service provided by Royal Mail after calls from the company to ditch Saturday letter deliveries. – The Times
