London open: Stocks rise after better-than-expected China factory data

London stocks rose in early trade on Friday, recovering from heavy losses in the previous session as investors welcomed a rebound in Chinese industrial production.

At 0900 BST, the FTSE 100 was up 1.1% at 5,807.11.

Sentiment was boosted after data from the National Bureau of Statistics showed that Chinese industrial output rose 3.9% in April from a year earlier compared to a 1.1% decline in March, coming in ahead of expectations for a 1.5% increase.

Despite the upbeat tone, Ipek Ozkardeskaya, senior analyst at Swissquote Bank, cautioned: "The Chinese figures certainly don’t reflect how the recovery will be in the rest of the world. Recovery outside China will likely remain dull and at risk of a second contagion wave, which could further hurt businesses and public finances."

In equity markets, miners BHP, Anglo American and Glencore were all higher, boosted by the better-than-expected Chinese figures.

Elsewhere, BT was a high riser following a report it is in early-stage talks to sell a multibillion-pound stake in its infrastructure division, Openreach.

Cruise operator Carnival and budget airline easyJet - both of which have been hit hard on coronavirus worries - rallied.

Computacenter gained after saying business had picked up further since late April and that the first half of 2020 would be "considerably ahead" of the same period a year earlier.

Bookmaker William Hill surged after saying it was planning a phased re-opening of its UK betting shops in the second half as it reported a slump in sales during the coronavirus crisis.

National Express advanced as it said revenue halved in April but that earnings and cash flow were better than expectations.

Signature Aviation - formerly BBA Aviation - was in the black as it reported a 77% slump in April flying activity amid the coronavirus lockdown but said there had been an improvement in May.

ContourGlobal, which owns and operates contracted wholesale power generation businesses, was trading up as it backed its 2020 guidance and posted a rise in earnings thanks to strength in its thermal division.

Market Movers

FTSE 100 (UKX) 5,807.11 1.14%
FTSE 250 (MCX) 15,594.50 1.23%
techMARK (TASX) 3,586.73 1.64%

FTSE 100 - Risers

Carnival (CCL) 886.40p 6.74%
BT Group (BT.A) 109.00p 6.71%
Meggitt (MGGT) 246.00p 3.40%
Hargreaves Lansdown (HL.) 1,619.50p 3.15%
BHP Group (BHP) 1,397.00p 3.08%
Fresnillo (FRES) 716.40p 3.05%
easyJet (EZJ) 498.70p 3.04%
Anglo American (AAL) 1,405.00p 2.99%
Bunzl (BNZL) 1,686.50p 2.84%
Scottish Mortgage Inv Trust (SMT) 693.50p 2.74%

FTSE 100 - Fallers

Royal Bank of Scotland Group (RBS) 103.90p -1.24%
WPP (WPP) 553.20p -0.90%
Lloyds Banking Group (LLOY) 28.39p -0.79%
Morrison (Wm) Supermarkets (MRW) 189.75p -0.52%
CRH (CRH) 2,287.00p -0.52%
ITV (ITV) 69.64p -0.37%
Barclays (BARC) 96.80p -0.35%
3i Group (III) 794.40p -0.33%
Next (NXT) 4,560.00p -0.26%
AstraZeneca (AZN) 8,755.00p -0.11%

FTSE 250 - Risers

Computacenter (CCC) 1,504.00p 12.57%
Aston Martin Lagonda Global Holdings (AML) 33.26p 8.34%
Marston's (MARS) 34.04p 6.38%
Apax Global Alpha Limited (APAX) 128.00p 6.31%
William Hill (WMH) 113.10p 5.95%
National Express Group (NEX) 192.90p 5.87%
Watches of Switzerland Group (WOSG) 226.50p 5.10%
Fisher (James) & Sons (FSJ) 1,220.00p 4.99%
Capita (CPI) 32.10p 4.90%
HGCapital Trust (HGT) 221.50p 4.73%

FTSE 250 - Fallers

WH Smith (SMWH) 839.50p -4.00%
Biffa (BIFF) 193.60p -1.93%
Workspace Group (WKP) 622.00p -1.82%
LXI Reit (LXI) 92.10p -1.81%
Tritax Big Box Reit (BBOX) 125.80p -1.72%
PureTech Health (PRTC) 218.00p -1.58%
Elementis (ELM) 57.95p -1.45%
NextEnergy Solar Fund Limited Red (NESF) 100.80p -1.18%
Fidelity China Special Situations (FCSS) 240.50p -1.03%
GCP Infrastructure Investments Ltd (GCP) 107.40p -0.92%