London open: Stocks steady as investors eye fresh catalysts; Capita surges
London stocks were flat in early trade on Monday as investors looked for fresh catalysts following an easing of geopolitical tensions.
At 0830 BST, the FTSE 100 was steady at 7,367.00, while the pound was up 0.2% versus the euro at 1.1415 and 0.1% firmer against the dollar at 1.4008.
Rebecca O'Keeffe, head of investment at Interactive Investor, said: "Trade tariffs, US sanctions and technology are all having a push and pull effect on equity markets. Despite some optimism that the US and China will reach a truce on trade tariffs, investors are not putting out the bunting yet, as discussions between the world’s two largest economies are likely to be protracted and the negotiation style of President Trump provocative.
"But it is not just trade tariffs and sanctions with China that are the focus of attention. Some commodity markets have been thrown into turmoil over recent US sanctions on Russian oligarchs and their companies. While metal prices have come off their highs, they are still trading at elevated levels, with aluminium prices more than 20% higher since sanctions began earlier this month, which has started to prompt cries of anguish from those in the supply chain, including German auto-manufacturers."
There are no major UK data releases due, but Markit's eurozone services and manufacturing PMIs are at 0900 BST, while the same data for the US is due at 1445 BST.
In corporate news, Whitbread was the standout gainer following a Sunday Times report suggesting that chief executive Alison Brittain is open to the idea of spinning off Costa Coffee from Premier Inn hotels.
Outsourcer Capita surged after it gave details of how it planned to spend proceeds of its £701m rights issue on a new strategy amid a "significant deterioration" in new business wins and a £513m loss before tax.
BHP Billiton rose after saying that Brazil's federal court has allowed it to have more time to complete negotiations regarding the public civil claims related to the Samarco dam failure.
Industrial pump manufacturer Rotork rallied after posting a 10.2% jump in first-quarter revenue, with order intake up 21% thanks to favourable market trends and the receipt of several significant orders.
Morgan Advanced Materials nudged up after posting a 6.5% rise in sales for the first three months to March on an organic constant currency compared to the first quarter of last year.
Elsewhere, Shire was in the black after saying late on Friday that it was considering a sweetened offer from Japan's Takeda Pharmaceutical.
On the downside, FTSE 250 shipping services provider Clarkson tumbled after warning that both first-half and full-year profits are now expected to be "materially below" the previous year following a number of headwinds in the first quarter.
Workspace lost ground after announcing the acquisition of two further Centro buildings in Camden for £76.5m in cash, while private healthcare operator NMC Health retreated after saying it has launched an offering of senior, unsecured, guaranteed convertible bonds due 2025.
Great Portland Estates ticked lower after it sold the freehold of 78/92 Great Portland Street and 15/19 Riding House Street to M&G Real Estate and secured a "substantial" pre-let of its Hannover Square development.
On the broker note front, consumer goods giant Reckitt Benckiser was hit by a downgrade to 'market perform' at Raymond James, while RSA Insurance nudged up as it was initiated at 'hold' by Jefferies.
Market Movers
FTSE 100 (UKX) 7,367.00 -0.02%
FTSE 250 (MCX) 20,241.05 0.10%
techMARK (TASX) 3,428.41 0.22%
FTSE 100 - Risers
Evraz (EVR) 414.40p 1.74%
Whitbread (WTB) 4,301.00p 1.56%
Antofagasta (ANTO) 966.80p 1.47%
Shire Plc (SHP) 3,870.50p 1.28%
Marks & Spencer Group (MKS) 284.00p 1.21%
Experian (EXPN) 1,622.50p 1.00%
Anglo American (AAL) 1,781.80p 0.83%
Barratt Developments (BDEV) 564.20p 0.82%
Old Mutual (OML) 244.50p 0.78%
Persimmon (PSN) 2,735.08p 0.67%
FTSE 100 - Fallers
Reckitt Benckiser Group (RB.) 5,450.00p -3.11%
NMC Health (NMC) 3,624.81p -1.71%
WPP (WPP) 1,131.95p -1.27%
Unilever (ULVR) 3,838.50p -0.88%
Rolls-Royce Holdings (RR.) 860.00p -0.72%
Coca-Cola HBC AG (CDI) (CCH) 2,479.00p -0.68%
Sage Group (SGE) 627.00p -0.60%
Diageo (DGE) 2,450.50p -0.59%
Compass Group (CPG) 1,496.00p -0.47%
G4S (GFS) 257.30p -0.46%
FTSE 250 - Risers
Capita (CPI) 181.35p 13.49%
Rotork (ROR) 322.80p 8.00%
Alfa Financial Software Holdings (ALFA) 371.13p 2.81%
888 Holdings (888) 284.40p 1.94%
Hikma Pharmaceuticals (HIK) 1,227.50p 1.61%
Weir Group (WEIR) 2,233.00p 1.45%
Bodycote (BOY) 925.00p 1.37%
Hastings Group Holdings (HSTG) 284.80p 1.28%
Saga (SAGA) 131.15p 1.27%
Ibstock (IBST) 302.00p 1.21%
FTSE 250 - Fallers
Clarkson (CKN) 2,210.00p -28.82%
Charter Court Financial Services Group (CCFS) 303.05p -2.15%
Fidessa Group (FDSA) 3,990.00p -1.60%
Close Brothers Group (CBG) 1,494.00p -1.52%
Purecircle Limited (DI) (PURE) 366.88p -1.51%
Capital & Counties Properties (CAPC) 282.40p -1.43%
Sports Direct International (SPD) 382.30p -1.32%
Polymetal International (POLY) 695.20p -1.22%
Intu Properties (INTU) 199.90p -1.19%
TBC Bank Group (TBCG) 1,850.00p -0.96%