London open: FTSE lifted as banks shine ahead of manufacturing data
London stocks edged higher in early trade on Tuesday as investors eyed some key manufacturing and industrial production data.
At 0830 BST, the FTSE 100 was up 0.2% to 7,520.77, while the pound was flat against the euro at 1.1191 and 0.2% firmer versus the dollar at 1.3166.
Spreadex analyst Connor Campbell said: “After yesterday’s sharp rebound - which was largely predicated on there being no real news to speak of - the pound gets a proper test this Tuesday in the form of some key data.
“It was last Monday’s manufacturing PMI that helped kick off sterling’s October headache; this morning it’s the turn of the manufacturing and industrial production readings."
Manufacturing and industrial production figures are at 0930 BST, along with trade balance data.
Manufacturing output growth is forecast, according to the consensus, to slow from 0.5% to 0.2% month-on-month, while industrial production is expected to remain unchanged at 0.2% on the month.
The goods trade balance deficit, meanwhile, is expected to shrink very slightly to £11.4bn in August from £11.6bn in July.
Investors were also digesting the latest retail sales figures from the British Retail Consortium and KPMG, which showed like-for-like sales rose 1.9% in September, up from a 0.4% increase in the same month last year. Total sales increased by 2.3%.
Market participants were also keeping an eye on Spain as Catalonian President Carles Puigdemont will deliver a speech to lawmakers on the independence referendum.
Banks put in a solid performance, with RBS and Lloyds all racking up healthy gains after ratings upgrades from Credit Suisse, although HSBC was higher despite being downgraded.
But Direct Line was the standout gainer as JPMorgan Cazenove reiterated its 'overweight' rating on the insurer and added it to its European Analyst Focus list
Whitbread nudged up after announcing that its Costa division has acquired 49% of its South China joint venture from its partner, Yueda, for RMB 310m (£35m).
Outsourcing group Capita rallied as it appointed former Amec Foster Wheeler boss Jon Lewis as chief executive to continue its turnaround, while Domino’s Pizza surged after saying third-quarter sales rose 21%.
Going the other way, Ted Baker slipped despite reporting a jump in first-half profit and revenue, while Vedanta Resources was weaker after the release of its second-quarter production results.
Pets at Home suffered heavy losses after former private equity owner Kohlberg Kravis Roberts sold 61m shares, equivalent to a 12% stake in the company.
FTSE 100 - Risers
Direct Line Insurance Group (DLG) 373.50p 1.94%
Royal Bank of Scotland Group (RBS) 276.10p 1.43%
HSBC Holdings (HSBA) 766.00p 1.38%
Antofagasta (ANTO) 993.50p 1.27%
Persimmon (PSN) 2,727.00p 1.07%
Barclays (BARC) 190.05p 0.90%
Reckitt Benckiser Group (RB.) 6,997.00p 0.85%
Centrica (CNA) 174.20p 0.81%
Lloyds Banking Group (LLOY) 67.03p 0.72%
Unilever (ULVR) 4,392.00p 0.68%
FTSE 100 - Fallers
Pearson (PSON) 626.00p -0.87%
Rolls-Royce Holdings (RR.) 911.50p -0.87%
International Consolidated Airlines Group SA (CDI) (IAG) 605.50p -0.66%
BAE Systems (BA.) 615.00p -0.57%
GKN (GKN) 354.10p -0.53%
Prudential (PRU) 1,814.50p -0.52%
National Grid (NG.) 937.70p -0.51%
easyJet (EZJ) 1,230.00p -0.49%
Kingfisher (KGF) 303.60p -0.46%
Smith & Nephew (SN.) 1,364.00p -0.44%
FTSE 250 - Risers
Domino's Pizza Group (DOM) 333.60p 10.32%
Capita (CPI) 582.00p 3.56%
Marston's (MARS) 107.50p 3.27%
Hochschild Mining (HOC) 232.60p 1.62%
Centamin (DI) (CEY) 148.60p 1.57%
Greene King (GNK) 528.00p 1.54%
Pagegroup (PAGE) 522.00p 1.46%
Sophos Group (SOPH) 593.50p 1.45%
Wood Group (John) (WG.) 732.50p 1.38%
Hays (HAS) 193.60p 1.31%
FTSE 250 - Fallers
Pets at Home Group (PETS) 197.00p -8.75%
FDM Group (Holdings) (FDM) 1,008.00p -1.75%
Provident Financial (PFG) 892.50p -1.71%
JD Sports Fashion (JD.) 365.20p -1.38%
Bodycote (BOY) 938.50p -1.31%
Coats Group (COA) 87.00p -1.30%
Rotork (ROR) 260.60p -1.25%
Diploma (DPLM) 1,058.00p -1.12%
Dunelm Group (DNLM) 708.50p -0.84%
Melrose Industries (MRO) 219.20p -0.81%