London open: Stocks edge up as China warns against commodities speculation

London stocks edged up in early trade on Monday even as commodity prices fell, as the latest warning from China sparked hopes that inflationary pressures might ease.

At 0900 BST, the FTSE 100 was up 0.3% at 7,037.42, after China warned against excessive speculation in commodities, saying there would be "zero tolerance" for monopolies in spot and futures markets, and for speculation and hoarding.

Spreadex analyst Connor Campbell said: "Instead of tanking, the FTSE’s sizeable commodity cabal, the index’s oil and mining stocks were broadly up on the day, with BHP Group (down just 0.1%) and Antofagasta (slipping 1.2%) the outliers."

He said the FTSE was likely up "on speculation that this Chinese commodity warning could help ease the inflationary pressures that have so spooked the markets this year".

"It is a very quiet day - and week - all told, especially with Germany and France enjoying a May Bank Holiday," said Campbell. Markets are closed for Pentecost/Whit Monday.

"The only noticeable event this afternoon is an appearance from Bank of England head Andrew Bailey, who is speaking before the Treasury Select Committee in London. Any comments regarding monetary policy, interest rates and/or inflation could cause some movement from the pound, which has started the week up 0.1% against the dollar and flat against the euro."

Cineworld gained as the movie theatre operator reported a strong opening weekend in the UK after Covid-19 restrictions were lifted, led by the success of Peter Rabbit 2: The Runaway.

Kainos rallied after it said annual profit more than doubled to a record as organisations invested in its digital operations during the pandemic.

Mr Kipling owner Premier Foods was a high riser after Shore Capital reiterated its ‘buy’ rating on the stock.

Market Movers

FTSE 100 (UKX) 7,037.42 0.28%
FTSE 250 (MCX) 22,400.03 0.00%
techMARK (TASX) 4,320.79 0.30%

FTSE 100 - Risers

Pershing Square Holdings Ltd NPV (PSH) 2,585.00p 1.77%
Intermediate Capital Group (ICP) 2,056.00p 1.18%
Aveva Group (AVV) 3,287.00p 1.05%
Polymetal International (POLY) 1,720.50p 0.97%
Ferguson (FERG) 9,816.00p 0.95%
BP (BP.) 314.95p 0.88%
Glencore (GLEN) 312.85p 0.81%
Vodafone Group (VOD) 128.48p 0.78%
Hikma Pharmaceuticals (HIK) 2,476.00p 0.77%
Ashtead Group (AHT) 5,116.00p 0.75%

FTSE 100 - Fallers

Fresnillo (FRES) 869.00p -1.47%
Antofagasta (ANTO) 1,519.50p -1.27%
Kingfisher (KGF) 354.10p -1.06%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,138.00p -0.84%
Barratt Developments (BDEV) 748.20p -0.82%
B&M European Value Retail S.A. (DI) (BME) 564.20p -0.67%
BAE Systems (BA.) 516.40p -0.65%
Standard Chartered (STAN) 503.80p -0.63%
United Utilities Group (UU.) 986.20p -0.62%
SEGRO (SGRO) 1,021.00p -0.58%

FTSE 250 - Risers

Kainos Group (KNOS) 1,469.00p 4.04%
Cineworld Group (CINE) 89.70p 3.32%
Cairn Energy (CNE) 166.90p 2.52%
Micro Focus International (MCRO) 499.00p 1.98%
Premier Foods (PFD) 103.60p 1.97%
Restaurant Group (RTN) 123.80p 1.48%
Biffa (BIFF) 297.50p 1.36%
WH Smith (SMWH) 1,709.00p 1.24%
Baillie Gifford US Growth Trust (USA) 298.50p 1.19%
Templeton Emerging Markets Inv Trust (TEM) 1,002.00p 1.11%

FTSE 250 - Fallers

Trainline (TRN) 302.60p -3.75%
Pagegroup (PAGE) 570.50p -3.55%
Provident Financial (PFG) 260.00p -2.03%
BMO Global Smaller Companies (BGSC) 159.40p -1.85%
Avon Rubber (AVON) 3,210.00p -1.83%
SSP Group (SSPG) 299.30p -1.42%
Ferrexpo (FXPO) 457.40p -1.25%
Impax Environmental Markets (IEM) 453.00p -1.20%
Capital & Counties Properties (CAPC) 167.20p -1.18%
Energean (ENOG) 783.50p -1.14%