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London open: Mining and oil stocks lift FTSE early
UK stocks put in decent gains on Tuesday morning, starting the second quarter off strongly on the back of a good performance from the mining and oil sectors early on.
By 0851 BST, the FTSE 100 was up 0.6% at 8,002.17. The index, which rose 0.3% in a shortened trading week last week, gained 3% over the first three months of the year to settle at 7,952.62 on Thursday.
With UK markets closed on Friday and Monday, investors will get their chance to react to some mixed economic data from the US released last week, which weighed on Wall Street indices the previous session. The all-important US personal consumption expenditures index showed that the annual rate of inflation rose to 2.5% in February from 2.4% the month before – the first acceleration since September – while the US manufacturing sector registered its first month of expansion in 16 months.
“This fanned further fears that the economy is continuing to expand under its own steam, with the sharp spike in production and new orders, alongside rising component prices, also potentially adding to the possibility of further inflationary pressures,” said Richard Hunter, head of markets at Interactive Investor.
Data barrage
Tuesday looks like another busy session in terms of economic data, with UK lending and house price figures, along with Germany inflation, manufacturing surveys across Europe and US job openings, along with a number of hotly anticipated speeches from members of the Federal Reserve.
The Nationwide UK house price index showed that price inflation ebbed unexpectedly last month. In seasonally adjusted terms, house prices recorded a month-on-month dip of 0.2% in March, under the consensus forecast of a 0.3% increase, after a 0.7% gain in February.
Meanwhile, manufacturing PMI from March released by Hamburg Commercial Bank (HCOB) in Italy, Spain, France and Germany all came in ahead of expectations – with Italy showing its first month of industry expansion in nearly a year.
Looking ahead, market participants will be keeping their eyes out for Eurozone inflation figures and ADP’s US employment report on Wednesday and the closely watched US non-farm payrolls data on Friday.
Market movers
Mining and oil stocks were performing well on Tuesday in London, with Fresnillo, Anglo American, Rio Tinto, Glencore, BP and Shell among the top performers as commodity prices gained.
HSBC was also on the rise after completing the sale of its Canadian banking operations to RBC, a move which it says “unlocks significant value”. Completion of the transaction will result in the recognition of an estimated gain on sale of $4.9bn in the first quarter of 2024, the company said.
Biopharma giant AstraZeneca was also performing well after receiving the green light from US regulators for its Voydeva drug.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Fresnillo Plc | +7.47% | +35.10 | 505.00 |
| 2 |  |
Anglo American Plc | +4.13% | +80.70 | 2,032.50 |
| 3 |  |
Shell Plc | +3.10% | +81.50 | 2,706.50 |
| 4 |  |
Glencore Plc | +2.75% | +11.95 | 447.25 |
| 5 |  |
Bhp Group Limited | +2.59% | +59.00 | 2,334.00 |
| 6 |  |
Bp Plc | +2.56% | +12.70 | 508.40 |
| 7 |  |
Rio Tinto Plc | +2.25% | +113.00 | 5,130.00 |
| 8 |  |
Bt Group Plc | +1.55% | +1.70 | 111.35 |
| 9 |  |
Antofagasta Plc | +1.37% | +28.00 | 2,067.00 |
| 10 |  |
Smiths Group Plc | +1.19% | +19.50 | 1,661.00 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Direct Line Insurance Group Plc | -2.59% | -5.05 | 190.00 |
| 2 |  |
Gsk Plc | -2.00% | -34.10 | 1,674.50 |
| 3 |  |
Carnival Plc | -1.97% | -23.00 | 1,146.50 |
| 4 |  |
Hikma Pharmaceuticals Plc | -1.90% | -36.50 | 1,882.00 |
| 5 |  |
Segro Plc | -1.84% | -16.60 | 887.20 |
| 6 |  |
Persimmon Plc | -1.82% | -24.00 | 1,292.00 |
| 7 |  |
Rolls-royce Holdings Plc | -1.80% | -7.70 | 419.00 |
| 8 |  |
Taylor Wimpey Plc | -1.64% | -2.25 | 134.80 |
| 9 |  |
Land Securities Group Plc | -1.63% | -10.70 | 647.50 |
| 10 |  |
Crh Plc | -1.61% | -110.00 | 6,718.00 |
Tuesday newspaper round-up: Truth Social, Thames Water, Presidio
The value of Donald Trump’s stake in Truth Social fell by more than $1bn on Monday after the social media company revealed it lost $58.2m last year and an auditor disclosed “substantial doubt” over its ability to continue operating. Shares in Trump Media & Technology Group, the owner of Truth Social, dropped 21.5% as investors scrutinized the fundamentals of its business. The former president’s vast stake in the firm was worth about $4.88bn on paper after its extraordinary stock market debut last week . After Monday’s sell-off, it was valued at about $3.83bn. – The Guardian
Thames Water has hired the restructuring firm that worked on the special administration of Bulb Energy as it scrambles to stave off nationalisation. The crisis-stricken water firm has appointed advisers at Teneo as it confronts an imminent financial crisis. Concerns are growing that the UK’s largest water company, which serves 15 million people, could be taken over by the Government in a special administration amid a standoff between its shareholders and the water industry regulator. – The Telegraph
US investment firm Clayton, Dubilier & Rice has agreed to buy IT business Presidio from UK rival BC Partners, according to several people familiar with the details, in the latest sign that private equity dealmaking is starting to come back to life. The investment, which values Presidio at around $4bn, comes after a significant slowdown in the past 18 months as the buyout industry, which relies on debt to acquire businesses, felt the effects of higher interest rates. – Financial Times
A group of companies that received £9 million in taxpayer funding via Rishi Sunak’s Future Fund is on the brink of collapse after the government accused them of “breaches” of scheme rules. Several businesses part-owned by Nova Group Holdings, a start-up investment group backed by Sir Terry Leahy, are “insolvent” after the state-owned British Business Bank called in their loans, administrators have said. – The Times
Up to 1.6 million more pensioners will be paying income tax within four years as a result of Conservative stealth raids, new analysis has revealed. As many as 9.3 million older people will be paying the tax by 2028 after the Government froze the threshold at which people start to pay. Currently, 8.5 million pensioners pay income tax – but analysis by the House of Commons Library has found that the frozen threshold means an extra 1.6 million will pay the tax than would have done if the threshold had risen along with inflation since 2021. – The Telegraph
A consortium of high-net-worth individuals including Justin King, the former chief executive of J Sainsbury, has raised £50 million to seek acquisitions in the premium restaurant sector. Hestia Hospitality, named after the Greek goddess of home and hospitality, has completed three small deals but is in “heads of terms” to buy two bigger businesses as it targets £100 million of revenues within three years. – The Times
