London open: Stocks rise as Apple provides some cheer; construction data eyed
London stocks rose in early trade on Wednesday, with miners on the up and wider sentiment underpinned by a solid set of earnings overnight from US tech giant Apple, as investors eyed the release of UK construction data.
At 0840 BST, the FTSE 100 was 0.5% higher at 7,554.68, while the pound was down 0.1% against the euro at 1.1337 and 0.2% firmer versus the dollar at 1.3639.
Better-than-expected earnings from Apple late on Tuesday set the tone for trading in London, as the tech company posted a 16% jump in second-quarter revenue to just over $61bn and said it was returning another $100bn to shareholders.
On the data front, the UK construction PMI at 0930 BST is expected to have ticked up to 50.5 in April from 47.0 the month before.
After yesterday’s manufacturing disappointment, the pound could do with an improvement in the construction sector, said Spreadex analyst Connor Campbell.
"The gradual erosion of its hawkish hopes for May’s Bank of England meeting - with Tuesday’s 17-month low manufacturing PMI the latest nail in an already firmly shut coffin - and the dollar’s own comeback has left sterling struggling to keep above $1.36, a near 16 week nadir."
Meanwhile, the Fed will announce its latest rate decision at 1900 BST.
In corporate news, Standard Chartered was in the black after it posted a 20% increase in profit for the first quarter as revenue rose across the bank’s business. Pre-tax profit for the three months to the end of March rose to $1.19bn (£880m) from $990m as operating income increased 7% to £3.87bn.
Ocado shot higher as it announced a new international partnership with Sweden's ICA to develop its online grocery business.
Residential landlord Grainger was on the front foot as it sold its 50% interest in the Walworth Investment Property (WIP) joint venture to its partner, Dorrington, for £67m.
Sage ticked up after the business software provider delivered first-half revenue growth of 6.3%, in line with its recent profit warning, and assured it had rooted out the problems.
Inmarsat rocketed as it said first-quarter pre-tax profit grew to $56m from $1.3m the year before, while kitchen maker Howden Joinery rallied after it posted a 15% jump in first-quarter UK revenue as it benefited from an extra week of trading compared to 2017, higher volumes and a weak comparative.
On the downside, Paddy Power Betfair slumped after it said underlying first-quarter earnings fell 6% as a result of new betting taxes and levies and start-up losses in its US businesses, while workspace provider IWG declined even as it reported an increase in first-quarter group revenue.
Insurer Direct Line fell after it reported a 5% drop in gross written premiums for the first quarter and warned that claims associated with the cold weather at the beginning of the year would eat up its full annual weather budget.
Indivior lost ground despite releasing in-line first-quarter results and saying it was no track to meet full-year guidance, while building materials group CRH slipped as it began the first phase of its share buyback programme.
Market Movers
FTSE 100 (UKX) 7,554.68 0.46%
FTSE 250 (MCX) 20,435.23 0.43%
techMARK (TASX) 3,465.50 -0.16%
FTSE 100 - Risers
Glencore (GLEN) 357.00p 2.90%
Antofagasta (ANTO) 979.00p 2.06%
British American Tobacco (BATS) 3,972.00p 1.85%
TUI AG Reg Shs (DI) (TUI) 1,681.50p 1.82%
Rio Tinto (RIO) 3,985.00p 1.80%
Ashtead Group (AHT) 2,064.00p 1.78%
Fresnillo (FRES) 1,266.00p 1.69%
BHP Billiton (BLT) 1,541.20p 1.47%
Anglo American (AAL) 1,727.80p 1.43%
Evraz (EVR) 458.96p 1.41%
FTSE 100 - Fallers
Paddy Power Betfair (PPB) 6,790.00p -6.41%
Direct Line Insurance Group (DLG) 361.60p -3.91%
Kingfisher (KGF) 288.20p -2.73%
Admiral Group (ADM) 1,974.00p -1.55%
Sainsbury (J) (SBRY) 312.02p -0.79%
Severn Trent (SVT) 1,975.00p -0.70%
ITV (ITV) 153.40p -0.45%
Mediclinic International (MDC) 679.00p -0.44%
Old Mutual (OML) 251.00p -0.40%
Sage Group (SGE) 634.00p -0.38%
FTSE 250 - Risers
Inmarsat (ISAT) 391.70p 8.26%
Ocado Group (OCDO) 585.84p 5.48%
Thomas Cook Group (TCG) 133.30p 5.21%
Howden Joinery Group (HWDN) 500.20p 4.21%
Ferrexpo (FXPO) 230.80p 2.58%
Kaz Minerals (KAZ) 918.20p 2.55%
TalkTalk Telecom Group (TALK) 132.80p 2.47%
Contour Global (GLO) 250.00p 2.46%
Centamin (DI) (CEY) 152.85p 2.17%
Sophos Group (SOPH) 512.47p 2.09%
FTSE 250 - Fallers
Indivior (INDV) 444.90p -3.49%
IWG (IWG) 236.50p -3.07%
Alfa Financial Software Holdings (ALFA) 345.85p -1.89%
Merlin Entertainments (MERL) 369.90p -1.49%
Provident Financial (PFG) 640.80p -1.05%
Wetherspoon (J.D.) (JDW) 1,167.00p -1.02%
Drax Group (DRX) 315.60p -0.94%
Cranswick (CWK) 2,876.00p -0.90%
Spectris (SXS) 2,784.00p -0.89%
William Hill (WMH) 292.50p -0.88%