London open: Stocks gain after stronger-than-expected China factory PMI
Stocks are moving slightly higher on the back of a better-than-expected reading on China's manufacturing sector in August and despite the latest headlines on Brexit and out of Hong Kong.
Caixin's factory sector Purchasing Managers' Index rose from July's reading of 49.9 to 50.4, beating forecasts for a reading of 49.8 and pointing again to growth in the space. It was the strongest reading since March.
However, a sub-index linked to new orders was only stable and another referencing new export orders fell at a faster pace, the survey compiler said
In the background meanwhile, albeit as had been widely anticipated, the latest batch of US tariffs of 10.0% on another $112.0bn-worth of Chinese exports kicked-in over the weekend, as did equivalent Chinese tariffs on $75bn-worth of US exports.
Against that backdrop, as of 0815 BST, the FTSE 100 was rising by 0.7% or 33.53 points to 7,240.71.
"After a rough August though traders should buckle up for more volatility in September. Trade and tariffs continue to gnaw away at investor confidence. Britain seems destined for a no-deal Brexit," said Neil Wilson, chief market analyst at Markets.com.
"First to trade, and we see no chance of a deal soon with the two main protagonists happy to see the dispute escalate. The US and China and are not the only players though in this drama – Japan and South Korea are also doing their best to stoke tensions. We are starting to find out just how bad the impact is on the real economy."
To take note of, US financial markets were set to remain closed on Monday in observance of th Labor Day holiday, meaning that many traders in the City were likely to also be away from their desks at the start of the week and that trading volumes were likely to be below average as a result.
Sterling was trading on the front foot against the euro despite news that on Sunday the Prime Minister threatened to expel any MP that tried to join forces with Jeremy Corbyn to stop a 'no deal' Brexit from the Conservative Party.
Euro/dollar however was trading below the $1.10 mark.
And in Hong Kong, some reports indicated that the past weekend had seen some of the most violent clashes yet.
Still ahead, survey compiler IHS Markit is due to publish its UK manufacturing sector Purchasing Managers' Index for the month of September at 0930 BST.
Across the Channel meanwhile, and in the run-up to the next European Central Bank policy meeting, investors will be keeping an eye out for any possible policy-related remarks out of the ECB legal conference in Frankfurt.
AstraZeneca reported positive trial results for two separate cardiovascular drugs on Monday. The pharmaceutical giant said a recent trial of its 'Brilinta' drug used in conjunction reduced the relative risk of heart attack or stroke by 10% compared with aspirin alone. Meanwhile, a separate trial of diabetes drug Farxiga saw the drug demonstrate a 30% decrease in the risk of experiencing a first episode of worsening heart failure and an 18% decrease in the risk of dying from cardiovascular causes when the treatment was used in conjunction with standard care.
Shares of Cobham were little changed despite the assurances provided by US private equity outfit Advent that its £4.0bn bid for the company would not harm the UK's industrial base nor pose any danger to the country's national security.
Centamin has made further progress in refreshing its board of directors as part of a push to reach an optimal balance between its members' core skills, experience and diversity, adding two new independent executive directors, Catherine Farrow and Marna Cloete. As part of the ongoing reshuffle, Alison Baker, one of its previous non-executive directors, announced her decision to step down. The ten person board was now composed of a non-executive chair, two executive directors and seven independent non-executive directors, with a range of skills comprising finance, legal, mining technical, capital markets and civil service.
Market Movers
FTSE 100 (UKX) 7,239.99 0.46%
FTSE 250 (MCX) 19,432.71 0.20%
techMARK (TASX) 3,826.10 0.35%
FTSE 100 - Risers
Micro Focus International (MCRO) 1,134.60p 2.33%
Smiths Group (SMIN) 1,696.50p 1.62%
TUI AG Reg Shs (DI) (TUI) 829.38p 1.52%
International Consolidated Airlines Group SA (CDI) (IAG) 427.80p 1.45%
AstraZeneca (AZN) 7,414.00p 1.31%
Centrica (CNA) 70.54p 1.21%
St James's Place (STJ) 928.80p 1.20%
Hargreaves Lansdown (HL.) 1,898.50p 1.09%
Johnson Matthey (JMAT) 2,941.00p 1.07%
Burberry Group (BRBY) 2,186.00p 1.02%
FTSE 100 - Fallers
Marks & Spencer Group (MKS) 189.15p -1.61%
HSBC Holdings (HSBA) 588.60p -0.47%
Severn Trent (SVT) 2,066.00p -0.24%
Fresnillo (FRES) 738.97p -0.19%
Vodafone Group (VOD) 154.98p -0.17%
British Land Company (BLND) 509.00p -0.16%
Sage Group (SGE) 699.80p -0.11%
SEGRO (SGRO) 784.20p -0.10%
Phoenix Group Holdings (PHNX) 646.50p -0.08%
Next (NXT) 5,932.00p -0.07%
FTSE 250 - Risers
Amigo Holdings (AMGO) 84.37p 6.00%
Network International Holdings (NETW) 623.00p 3.66%
Bank of Georgia Group (BGEO) 1,395.00p 2.50%
Restaurant Group (RTN) 156.80p 2.28%
FDM Group (Holdings) (FDM) 770.00p 1.99%
Sirius Minerals (SXX) 10.55p 1.98%
Dechra Pharmaceuticals (DPH) 3,054.00p 1.80%
Hill & Smith Holdings (HILS) 1,170.00p 1.74%
Go-Ahead Group (GOG) 2,115.52p 1.71%
Clarkson (CKN) 2,335.77p 1.56%
FTSE 250 - Fallers
4Imprint Group (FOUR) 2,725.00p -1.98%
IP Group (IPO) 55.70p -1.94%
Intu Properties (INTU) 39.98p -1.89%
Charter Court Financial Services Group (CCFS) 257.57p -1.69%
Sequoia Economic Infrastructure Income Fund Limited (SEQI) 115.00p -1.54%
Softcat (SCT) 1,024.62p -1.48%
Polymetal International (POLY) 1,167.50p -1.31%
QinetiQ Group (QQ.) 285.11p -1.21%
OneSavings Bank (OSB) 318.00p -1.18%
Diploma (DPLM) 1,567.00p -1.14%