FTSE climbs as risk appetite returns
London stocks are gaining ground this morning after heartening economic data from China led Asia to a positive finish overnight and boosted commodities.
Energy and metals prices are rising after data showed China’s inflation rate remains high at 5.5 per cent.
That rate was better than some expected, though, while retail sales data also showed the economy growing robustly.
The Nikkei closed 1.1 per cent higher on the news.
Investors are digesting just-released UK inflation figures showing that CPI held steady at 4.5 per cent in May. The news has not materially affected the market.
Financial stocks are leading the FTSE 100 higher and investment manager Schroders has gained 3.6 per cent on the back of an upgrade from HSBC.
Credit score monitor Experian has risen 2.2 per cent, while Barclays is up 1.9 per cent and RBS up 1.8 per cent.
Mining and energy stocks are also performing well: Antofagasta is 1.9 per cent higher and Vedanta Resources is 1.8 per cent up.
Anglo American is among other sector peers gaining ground.
However, ENRC is 2.3 per cent lower after Glencore denied it was planning to bid for it.
And despite reporting a 45 per cent leap in quarterly operating profit compared with 2010, Glencore has fallen 1.8 per cent and is still trading below its flotation price.
Retailer Tesco is also off by 0.5 per cent after it reported growing international sales but missed UK forecasts with a slight like-for-like decline in sales excluding VAT and petrol.
Defensive stocks such as British American Tobacco and Scottish and Southern Energy have fallen slightly.
The smaller-cap FTSE 250 is fired up by bid talk this morning.
Avis Europe is up 58 per cent after its UK counterpart Avis Budget said it had agreed to buy it for a total £636m in cash to reunite the two companies after 25 years.
Investors will be looking ahead to this afternoon’s US inflation and retail sales figures, which may kickstart Wall Street after a subdued Monday session.