London open: Stocks rise as pound falls back on Carney comments

London stocks rose in early trade on Friday as the pound fell back following dovish comments from Bank of England governor Mark Carney.

At 0850 BST, the FTSE 100 was up 0.4% to 7,356.93, while the pound was down 0.2% against the euro at 1.1386 and 0.3% lower versus the dollar at 1.4046 after Carney cast doubt on another interest rate hike in May.

Speaking to BBC News the previous evening, Carney highlighted recent mixed UK data and said he didn't want to be "too focused on the precise timing" of an interest rate hike.

"The biggest set of economic decisions over the course of the next few years are going to be taken in the Brexit negotiations and whatever deal we end up with. And then we will adjust to the impact of those decisions in order to keep the economy on a stable path," he said.

Analyst Michael Hewson at CMC Markets said: "Recent guidance from UK policymakers, as well as the two votes to raise rates at the last meeting had raised expectations that even if a rate rise were to take place in May any effect wouldn’t be particularly material in the short term.

"In this context yesterday’s comments were a surprise as the governor, in another triumph for the banks forward guidance, suggested that as a result of yesterday’s weak retail sales numbers the timing of a rise might need to be pushed back."

In corporate news, Shire was in the red after Allergan pulled out of its pursuit for the biopharmaceutical group only hours after saying it was pondering a possible takeover offer. The botox-maker confirmed in a statement on Friday morning that it "does not intend to make an offer for Shire". This came a day after Japan's Takeda said the company had rejected a £42.4bn takeover offer.

Durex and Dettol maker Reckitt Benckiser was under the cosh as like-for-like sales for the first quarter fell short of estimates, while housebuilder Countryside Properties was lower after US hedge fund Oaktree Capital sold its entire 8% stake in the company.

Barclays was in the black after saying that boss Jes Staley will be fined by UK regulators for attempting to uncover a whistleblower back in 2016, but that he would not be banned.

Housebuilder Taylor Wimpey edged higher after announcing that finance director Ryan Mangold was stepping down with immediate effect, though a permanent internal appointment has been made.

High performance components and sub-systems company Meggitt ticked up as it secured a long-term agreement with Solar Turbines.

Royal Mail nudged higher after announcing the retirement of chief executive officer Moya Greene in September after more than eight years in the role. She will be succeeded by parcels boss Rico Back.

Indivior gained after filing a new drug submission Canadian drug regulators for an opioid addiction treatment.

Esure was a high riser after Peel Hunt upgraded the stock to 'buy', while Cineworld racked up healthy gains after Berenberg added the stock to its preference list, saying the market is being overly bearish on the prospects for a US rebuild after the significant Regal acquisition and associated rights issue.

Market Movers

FTSE 100 (UKX) 7,356.93 0.38%
FTSE 250 (MCX) 20,197.24 0.25%
techMARK (TASX) 3,414.94 0.12%

FTSE 100 - Risers

Mediclinic International (MDC) 693.04p 2.73%
CRH (CRH) 2,479.00p 2.18%
British American Tobacco (BATS) 3,717.00p 1.84%
NMC Health (NMC) 3,662.00p 1.84%
Smiths Group (SMIN) 1,599.00p 1.72%
BAE Systems (BA.) 601.40p 1.52%
Imperial Brands (IMB) 2,387.50p 1.38%
Standard Chartered (STAN) 755.50p 1.37%
HSBC Holdings (HSBA) 699.50p 1.27%
GlaxoSmithKline (GSK) 1,423.60p 1.15%

FTSE 100 - Fallers

Reckitt Benckiser Group (RB.) 5,468.50p -5.49%
Shire Plc (SHP) 3,843.50p -3.31%
Rolls-Royce Holdings (RR.) 858.60p -2.08%
Smurfit Kappa Group (SKG) 3,158.00p -0.94%
easyJet (EZJ) 1,593.80p -0.88%
Burberry Group (BRBY) 1,707.00p -0.44%
InterContinental Hotels Group (IHG) 4,378.00p -0.39%
BP (BP.) 514.90p -0.31%
Sky (SKY) 1,315.50p -0.27%
International Consolidated Airlines Group SA (CDI) (IAG) 610.80p -0.26%

FTSE 250 - Risers

esure Group (ESUR) 228.00p 3.07%
TI Fluid Systems (TIFS) 258.00p 2.38%
Indivior (INDV) 439.70p 2.16%
Spire Healthcare Group (SPI) 244.10p 1.79%
Ultra Electronics Holdings (ULE) 1,346.00p 1.74%
BCA Marketplace (BCA) 186.00p 1.64%
Virgin Money Holdings (UK) (VM.) 278.60p 1.57%
Contour Global (GLO) 264.00p 1.54%
B&M European Value Retail S.A. (DI) (BME) 397.80p 1.48%
Hunting (HTG) 791.50p 1.47%

FTSE 250 - Fallers

Greene King (GNK) 563.80p -2.93%
Wizz Air Holdings (WIZZ) 3,223.00p -2.39%
Countryside Properties (CSP) 363.00p -2.16%
Coats Group (COA) 77.90p -1.39%
Ferrexpo (FXPO) 235.10p -1.38%
Essentra (ESNT) 435.20p -1.27%
Charter Court Financial Services Group (CCFS) 305.15p -1.21%
Hochschild Mining (HOC) 221.90p -1.20%
Cairn Energy (CNE) 220.12p -1.11%
Galliford Try (GFRD) 889.00p -0.95%