London open: Stocks edge higher despite mixed data out of China and Japan
Stocks began the session and the second quarter on the front foot despite a weaker-than-expected reading on the state of China's manufacturing sector in March and mixed data out of Japan.
As of 0812 GMT the FTSE 100 was trading 2.99 points higher to 7,326.37.
"This week will be all about reappraisal of the Trump trade into the new quarter and whether sufficient optimism and momentum remains given the event risk associated with this week’s meeting between Chinese President Xi and Trump, Fed minutes this Wednesday and the US Jobs report on Friday. Oh, and all the political risk build up to the end-month first round of the French Presidential election and any further developments on the Brexit negotiation front," said Mike van Dulken, head of research at Accendo Markets.
A slowdown in export orders and production saw Caixin's China factory sector purchasing managers' index slip from a reading of 51.7 for March to 51.2 for February.
In parallel, the Bank of Japan's Tankan index of business confidence for the country's large manufacturers advanced from +10 in the fourth quarter of 2016 to +14 for the first three months of 2017 (consensus: +14).
However, the quarterly rate of change in the Tankan All Industry index pointed towards an annual rate of economic growth of 2%. Furthermore, firms said they were planning to ramp-up their capital spending by 0.6% in 2017 - the strongest read since 2007 - analysts at Capital Economics pointed out.
On a more cautious note, analysts at Danske Bank mused that: "Reflation has been the big theme since November and the driver of most financial markets. However, we believe some of the engines fuelling reflation are set to lose steam over the next three months.
"With reflation set to lose steam, the fuel for the bond bear market is tailing off. In addition, a correction - or a pause - in the equity bull market is normal when the economic acceleration phase is over."
On the economic calendar for Monday were manufacturing sector PMIs in the euro area, UK and US referencing that same month.
Reckitt to sell unit to raise funds for takeover
Consumer products maker Reckitt Benckiser confirmed it was considering options for its food business, which includes the French’s mustard brand, on Monday.The FTSE 100 firm was the subject of press speculation over the weekend, with the Sunday Times suggesting it was seeking a possible buyer for the food division to fund the takeover of US baby food manufacturer Mead Johnson. "We have ... decided to initiate a strategic review of Food where we will explore all options for this great business," Reckitt’s board said on Monday.
Babcock was chosen as the preferred bidder to become the Marine Systems Support Partner for the Royal Navy's new Queen Elizabeth Class Aircraft Carriers and Type 45 Destroyers. The MoD programme is potentially worth £360m spread across seven years.
Industrial equipment rental company Ashtead Group has bought New York-based Pride Equipment Corporation for £279m. The FTSE 100 company's US subsidiary Sunbelt Rentals bought Pride to further enhance its position in the New York City market with a complementary firm renting smaller and medium sized equipment, which offers cross selling opportunities.
Market Movers
FTSE 100 (UKX) 7,342.67 0.27%
FTSE 250 (MCX) 18,980.69 0.05%
techMARK (TASX) 3,456.39 0.14%
FTSE 100 - Risers
Micro Focus International (MCRO) 2,324.00p 2.02%
Anglo American (AAL) 1,234.50p 1.23%
Rio Tinto (RIO) 3,248.50p 1.22%
Burberry Group (BRBY) 1,744.00p 1.16%
BP (BP.) 462.65p 1.11%
Ashtead Group (AHT) 1,670.00p 1.03%
Royal Dutch Shell 'B' (RDSB) 2,205.00p 0.94%
Glencore (GLEN) 315.95p 0.89%
Reckitt Benckiser Group (RB.) 7,349.00p 0.86%
Royal Dutch Shell 'A' (RDSA) 2,112.50p 0.79%
FTSE 100 - Fallers
ITV (ITV) 214.10p -2.19%
Next (NXT) 4,249.00p -1.64%
easyJet (EZJ) 1,017.00p -0.88%
Fresnillo (FRES) 1,544.00p -0.77%
Royal Mail (RMG) 422.50p -0.59%
Pearson (PSON) 678.50p -0.59%
Kingfisher (KGF) 324.20p -0.58%
Royal Bank of Scotland Group (RBS) 240.70p -0.58%
International Consolidated Airlines Group SA (CDI) (IAG) 526.50p -0.47%
Barclays (BARC) 224.10p -0.44%
FTSE 250 - Risers
Millennium & Copthorne Hotels (MLC) 452.00p 2.49%
PZ Cussons (PZC) 328.20p 2.21%
Clarkson (CKN) 2,638.00p 1.46%
Vedanta Resources (VED) 820.50p 1.30%
Henderson Group (HGG) 235.90p 1.20%
Nostrum Oil & Gas (NOG) 490.70p 1.18%
Tullow Oil (TLW) 236.50p 1.07%
Edinburgh Inv Trust (EDIN) 721.00p 1.05%
Tate & Lyle (TATE) 772.50p 1.05%
Brewin Dolphin Holdings (BRW) 315.60p 1.02%
FTSE 250 - Fallers
PayPoint (PAY) 1,002.00p -2.24%
Keller Group (KLR) 887.00p -2.21%
IP Group (IPO) 155.00p -1.08%
Bovis Homes Group (BVS) 837.00p -1.06%
RPC Group (RPC) 773.50p -1.02%
Allied Minds (ALM) 302.00p -0.89%
Fidelity China Special Situations (FCSS) 194.00p -0.87%
Assura (AGR) 57.35p -0.86%
Meggitt (MGGT) 441.60p -0.83%
Thomas Cook Group (TCG) 84.80p -0.82%