London open: Stocks edge up amid lockdown easing hopes; BoE stands pat

London stocks edged higher in early trade on Thursday amid lockdown easing hopes, as investors mulled the latest policy announcement from the Bank of England.

The FTSE 100 was up 0.4% at 5,874.21.

Bank of England policymakers voted unanimously to keep the main interest rate on hold at a record low of 0.1% and 7-2 to leave the £645bn bond-buying programme unchanged. Two members voted to increase the target for the stock of asset purchases by an additional £100bn.

Spreadex analyst Connor Campbell said: "The headline takeaways are all rather terrifying: a 14% contraction in the UK in 2020 (and a 25% slump in Q2), with unemployment of 9% fast approaching. Globally the central bank is expecting to shrink by 20% in the second quarter.

"Crucially, it did also state that it expects an aggressive rebound in 2021, with growth of as much as 15% in the UK.

"This, combined with the ongoing and prospective lockdown-easing measures around the world - even if the wisdom of such decisions, especially in the US where death is becoming government policy, are questionable - helped the markets tentatively rise after the bell."

In equity markets, RSA Insurance was the standout gainer as it said group business operating profit for the first quarter rose by double digit percentages.

Melrose Industries was also in the green even as it said group sales in the four months to 30 April slid around 20% on the year.

On the downside, BT was the worst performer on the top-flight index as it pulled its dividend due to the coronavirus pandemic and reported a drop in full-year profit and revenue, while Rolls-Royce fell after it outlined cost-cutting plans and signalled job cuts.

British Airways owner IAG flew lower after saying it swung to a first-quarter operating loss of €535m. It also warned of a "significantly worse" second quarter due to the coronavirus pandemic that has grounded most of its fleets.

Market Movers

FTSE 100 (UKX) 5,874.21 0.35%
FTSE 250 (MCX) 16,074.77 0.58%
techMARK (TASX) 3,591.14 0.49%

FTSE 100 - Risers

RSA Insurance Group (RSA) 385.90p 4.47%
Melrose Industries (MRO) 101.85p 3.72%
Anglo American (AAL) 1,408.00p 2.71%
Informa (INF) 442.30p 2.60%
Flutter Entertainment (FLTR) 9,514.00p 2.59%
JD Sports Fashion (JD.) 529.20p 2.12%
Johnson Matthey (JMAT) 1,925.00p 2.07%
Experian (EXPN) 2,519.00p 1.98%
Antofagasta (ANTO) 808.60p 1.74%
Pearson (PSON) 438.90p 1.69%

FTSE 100 - Fallers

BT Group (BT.A) 108.75p -4.81%
Rolls-Royce Holdings (RR.) 282.40p -3.85%
Admiral Group (ADM) 2,412.00p -3.83%
St James's Place (STJ) 814.00p -2.49%
easyJet (EZJ) 510.40p -1.69%
National Grid (NG.) 926.00p -1.38%
Meggitt (MGGT) 248.60p -1.31%
Polymetal International (POLY) 1,649.50p -1.26%
Imperial Brands (IMB) 1,601.00p -1.14%
Whitbread (WTB) 2,768.00p -0.90%

FTSE 250 - Risers

Helios Towers (HTWS) 135.20p 7.47%
Morgan Sindall Group (MGNS) 1,274.00p 5.64%
TR Property Inv Trust (TRY) 324.00p 4.68%
Airtel Africa (AAF) 41.40p 4.68%
BlackRock Smaller Companies Trust (BRSC) 1,316.00p 4.44%
Cairn Energy (CNE) 115.80p 4.14%
Vivo Energy (VVO) 79.60p 4.05%
IMI (IMI) 809.50p 3.98%
Grafton Group Units (GFTU) 602.50p 3.61%
Micro Focus International (MCRO) 480.80p 3.51%

FTSE 250 - Fallers

TUI AG Reg Shs (DI) (TUI) 273.20p -7.73%
Countryside Properties (CSP) 377.40p -4.41%
Ibstock (IBST) 194.50p -2.60%
Wizz Air Holdings (WIZZ) 2,608.00p -2.47%
Hammerson (HMSO) 49.99p -2.40%
Stagecoach Group (SGC) 61.95p -2.13%
Energean Oil & Gas (ENOG) 615.00p -2.07%
GCP Infrastructure Investments Ltd (GCP) 112.40p -1.58%
F&C Investment Trust (FCIT) 626.00p -1.57%
Watches of Switzerland Group (WOSG) 233.00p -1.48%