- FTSE 100 jumps 1.3 per cent after hitting two-month low
- Aggreko jumps on full-year guidance
- Miners erase losses after slow start
- Chinese manufacturing data disappoints, Eurozone PMIs impress
techMARK 2,686.10 +0.84%
FTSE 100 6,522.20 +1.28%
FTSE 250 15,384.58 +0.99%
Stocks rose strongly on Monday as bargain hunters stepped in after the FTSE 100 hit a two-month low the previous session.
Mining stocks quickly erased losses early on and were providing a lift in London as metal prices swung into positive territory following earlier weakness. Strong gains from Aggreko, Perform Group and Synergy Health were also giving markets a boost in afternoon trade.
The FTSE 100 surged by 82.24 points to 6,522.2, up 1.3% from Friday's close of 6,439.96 which was its worst finish since October 10th after a poor showing for global indices last week.
The Footsie in particular lost 1.7% last week, while the Dow Jones and S&P 500
on Wall Street had their worst weekly performance since August, as risk appetite declined ahead of a possible reduction of stimulus by the Federal Reserve this week. However, markets recovered strongly today with better-than-expected industrial production figures from the States helping US markets higher after the opening bell.
"On the economic data front the direction of travel of data continues to point to an improvement in the US economy, but there is also a growing belief, possibly misplaced that the Fed will do nothing this week," said Michael Hewson, Chief Market Analyst at CMC Markets.
Markets got off to a slow start this morning after the release of a HSBC/Markit report that showed Chinese manufacturing activity eased in December. A flash reading of purchasing managers' index (PMI) fell to 50.5 from 50.8 in November, missing the 50.9 estimate. A reading above 50 signals expansion.
However, buying picked up by mid-morning after data showed that manufacturing growth drove Eurozone business activity to its second-highest level since mid-2011 this month, according to Markit. The composite PMI, which tracks both the manufacturing and services sectors, rose to 52.1 from 51.7 in November, ahead of the 51.9 forecast.
Meanwhile, US industrial production rose at a month-on-month rate of 1.1% last month after a revised 0.1% gain in October. This was well ahead of the 0.6% increase expected by analysts and the biggest rise since November 2012.
Aggreko jumps, RSA extends losses
Temporary power and temperature control group Aggreko said it now expects full-year results to be slightly higher than previous expectations, causing shares
to jump this morning. Recently the stock has slumped on concerns it would issue a profit warning as it struggles with the weaker dollar, mixed trading at its two main divisions and a dearth of recent contract, impacting trading in 2014.
Analysts at Investec said investors "should be able to sleep slightly easier tonight" after a "welcome" trading update.
RSA Insurance fell, extending losses after a heavy sell-off on Friday after a profit warning and the surprise exit of its Chief Executive Simon Lee. According to the Financial Times, Chairman Martin Scicluna is to hold "urgent talks" this week with rating agencies in an attempt to avert a credit rating downgrade. RSA was just one of seven stocks on the FTSE 100 to finish in the red.
Mining stocks, which had fallen sharply early on after the China data, were broadly higher by the close with Vedanta amongst the best performers on the FTSE 100. Antofagasta and Anglo American also finished with decent gains.
Digital sports media firm Perform Group was a high riser as it continues to recover following a sell-off last week following a profit warning.
Healthcare outsourcing group Synergy Health impressed investors after winning a total of six new contracts in the Americas, adding £230m to its order book.
RPC Group rose after acquiring personal care, healthcare and food packaging business Maynard & Harris (M&H) for £103.5m.
Media and events company UBM declined despite saying said it expects full-year trading to be in line with expectations after fourth-quarter trading came in as anticipated.
FTSE 100 - Risers
Aggreko (AGK) 1,645.00p +8.51%
CRH (CRH) 1,487.00p +4.79%
Mondi (MNDI) 945.50p +4.13%
Diageo (DGE) 1,938.50p +2.92%
Vedanta Resources (VED) 797.00p +2.84%
Rolls-Royce Holdings (RR.) 1,236.00p +2.74%
Resolution Ltd. (RSL) 330.40p +2.64%
Shire Plc (SHP) 2,785.00p +2.62%
Associated British Foods (ABF) 2,302.00p +2.58%
Wolseley (WOS) 3,206.00p +2.56%
FTSE 100 - Fallers
RSA Insurance Group (RSA) 90.10p -2.59%
Aberdeen Asset Management (ADN) 453.10p -0.66%
ARM Holdings (ARM) 995.50p -0.55%
Next (NXT) 5,445.00p -0.37%
Experian (EXPN) 1,070.00p -0.28%
British Sky Broadcasting Group (BSY) 802.50p -0.19%
Sage Group (SGE) 375.00p -0.13%
FTSE 250 - Risers
Perform Group (PER) 236.00p +9.77%
Synergy Health (SYR) 1,110.00p +7.45%
Ocado Group (OCDO) 433.10p +5.30%
Kenmare Resources (KMR) 20.00p +4.55%
Essar Energy (ESSR) 71.30p +4.09%
Bodycote (BOY) 634.50p +4.02%
esure Group (ESUR) 247.00p +3.96%
Regus (RGU) 198.00p +3.83%
Inchcape (INCH) 577.50p +3.77%
Telecom Plus (TEP) 1,795.00p +3.76%
FTSE 250 - Fallers
UBM (UBM) 650.00p -3.70%
Kentz Corporation Ltd. (KENZ) 603.00p -2.98%
Close Brothers Group (CBG) 1,325.00p -2.21%
Wood Group (John) (WG.) 710.00p -1.73%
Partnership Assurance Group (PA.) 270.80p -1.28%
Spirent Communications (SPT) 98.95p -1.00%
Morgan Advanced Materials (MGAM) 290.00p -0.89%
Evraz (EVR) 97.65p -0.81%
IP Group (IPO) 164.00p -0.79%
Crest Nicholson Holdings (CRST) 359.00p -0.75%