London open: Stocks rebound after Brussels terrorist attacks
London stocks rebounded on Wednesday from declines in the previous session when terrorist attacks in Brussels rocked the market.
Global equity markets slumped after twin explosions at Zaventem airport and a metro station on Tuesday morning left about 34 people dead and 250 wounded. Extremists group ISIL claimed responsibility for the attacks shortly after.
UK stocks began to recover later in the day from the news which had sent travel and leisure shares lower. Many analysts suggested the market has become resilient to such events after the Paris terrorist attacks.
On Wednesday’s agenda there is little in the way of economic data to continue the rally equities throughout the day.
“Rising around 20 points after the open the FTSE once again crossed 6200 this morning; whether it can finally see a sustained increase above that level, which it has struggled with throughout March, is unclear,” said Connor Campbell, financial analyst at Spreadex.
“In all likelihood such a limited day of data means the index may find it hard to gain much momentum as the day goes on.”
In a lift to markets, the president of the Asian Development Bank said on Wednesday that China’s economy is unlikely to suffer a hard landing as there is room for fiscal and monetary stimulus to boost growth.
"There won't be a hard landing," Takehiko Nakao, a former Japanese vice finance minister for international affairs, told a news conference.
The lender has forecast China’s economy will grow 6.7% this year, but Takehiko suggested that the estimate might be modified lowered later this month.
China's government is targeting growth of 6.5% to 7% this year after 6.9% expansion in 2015.
In corporate news, Kingfisher’s shares jumped after the home improvement retailer reported a 0.3% increase in full year adjusted pre-tax profit to £686m.
Sports Direct was in the red after releasing a statement clarifying that its earnings for the full year to the end of April will be at the bottom of the range of its guidance announced back in January.
Wizz Air advanced after saying the strong performance seen in the first nine months had continued into the final quarter due to robust ticket sales, lower fuel costs, robust load factors and a continued disciplined approach to cost management.
William Hill plunged after posting a disappointing first-quarter update after a loss-making Cheltenham horse racing festival and weaker than expected online performance.
HomeServe gained as it said trading in the final quarter had been as forecast and full year results were expected to be in line with expectations.
DFS Furniture dropped despite reporting a 12.3% rise in first half core earnings as sales grew and the retailer hiked its dividend. However the company warned it was “not clear what the impact and outcome will be on consumer confidence and Sterling” ahead of Britain’s referendum on its European Union membership on 23 June.
Market Movers
FTSE 100 (UKX) 6,203.23 0.17%
FTSE 250 (MCX) 16,943.95 0.24%
techMARK (TASX) 3,111.85 0.22%
FTSE 100 - Risers
Kingfisher (KGF) 361.60p 3.14%
Sky (SKY) 1,035.00p 2.17%
Carnival (CCL) 3,526.00p 2.03%
easyJet (EZJ) 1,523.00p 1.26%
WPP (WPP) 1,615.00p 1.25%
Sage Group (SGE) 627.00p 1.21%
Unilever (ULVR) 3,139.00p 1.18%
Coca-Cola HBC AG (CDI) (CCH) 1,460.00p 1.11%
Marks & Spencer Group (MKS) 412.60p 1.08%
Mediclinic International (MDC) 874.00p 1.04%
FTSE 100 - Fallers
Randgold Resources Ltd. (RRS) 6,375.00p -2.45%
Paddy Power Betfair (PPB) 9,075.00p -1.79%
Fresnillo (FRES) 980.00p -1.41%
Direct Line Insurance Group (DLG) 375.20p -1.32%
Standard Chartered (STAN) 489.05p -1.14%
Antofagasta (ANTO) 493.00p -0.94%
Tesco (TSCO) 199.90p -0.87%
Anglo American (AAL) 548.60p -0.85%
Morrison (Wm) Supermarkets (MRW) 201.60p -0.59%
Capita (CPI) 1,017.00p -0.59%
FTSE 250 - Risers
Allied Minds (ALM) 470.00p 4.33%
Regus (RGU) 309.50p 3.58%
AO World (AO.) 177.10p 3.27%
Virgin Money Holdings (UK) (VM.) 376.00p 3.01%
Vedanta Resources (VED) 335.30p 2.98%
Euromoney Institutional Investor (ERM) 899.50p 2.62%
Ocado Group (OCDO) 303.80p 2.53%
Thomas Cook Group (TCG) 90.65p 2.37%
Phoenix Group Holdings (DI) (PHNX) 936.00p 1.96%
Evraz (EVR) 89.00p 1.95%
FTSE 250 - Fallers
William Hill (WMH) 321.40p -13.32%
DFS Furniture (DFS) 308.70p -5.02%
Ladbrokes (LAD) 114.60p -4.90%
Serco Group (SRP) 100.10p -2.82%
Daejan Holdings (DJAN) 5,555.00p -2.80%
Zoopla Property Group (WI) (ZPLA) 243.30p -2.09%
Jimmy Choo (CHOO) 132.50p -1.85%
Acacia Mining (ACA) 272.60p -1.84%
Tullow Oil (TLW) 220.30p -1.65%
Wood Group (John) (WG.) 629.50p -1.56%