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London open: Stocks nudge higher as Morrisons rallies
Stocks in London nudged higher at the open after the index hit another record high in the previous session, with miners boosted by encouraging Chinese data, while the pound remained under pressure on the back of Brexit concerns.
At 0830 GMT, the FTSE 100 was up 0.2% at 7,252.42. Meanwhile, oil prices were a touch firmer, with West Texas Intermediate and Brent crude up 0.3% to $52.13 and $55.13 a barrel, respectively.
On Monday, the index ended 28 points higher at 7,238 – the eighth consecutive record high and the tenth consecutive positive close – as the pound slid 1% against the greenback following Prime Minister Theresa May’s latest Brexit comments.
Spreadex‘s Connor Campbell said: “There wasn’t much going on this morning, with the market failing to significantly move from yesterday’s pound-driven positions.
“Having closed at a new all-time high for eight days in a row, matching its previous best-ever run in the process, the FTSE is now chasing two records this Tuesday. If the index can end this afternoon at another fresh peak then it will have not only broken a price-record (obviously), but will create a new record for number of consecutive days it has ended a session at a new all-time high. While that may sound exciting, it currently looks like the FTSE is only going to be able to manage another incremental increase on its peak, the index opening 15 points higher after the bell.”
In currency markets, the pound remained weaker, down 0.3% against the dollar and 0.4% versus the euro.
Miners were lifted by encouraging data from China, which showed producer prices rose at their fastest pace since September 2011 in December. Producer prices were up 5.5% from the same month a year ago, beating expectations for a 4.5% increase. Anglo American, Rio Tinto, Antofagasta and BHP Billiton were all in the black.
In corporate news, Wm Morrison rallied after saying it expects full year profit to be ahead of market consensus on the back of its strongest festive performance for seven years. For the nine weeks to 1 January, the supermarket group grew like-for-like sales excluding fuel 2.9%, while total sales were 2.0% higher. Peer Tesco was also on the front foot.
Whitbread was higher after Credit Suisse upgraded the stock to ‘outperform’.
Gaming software development company Playtech gained as it said it expects results for the full year 2016 to be in line with market views as it announced that chief financial officer Ron Hoffman will become chief executive officer of the group’s financials divisions.
Trinity Mirror advanced after confirming it is in the “early stage of discussions” with Richard Desmond over a potential investment in some of Northern & Shell’s assets.
International distribution and outsourcing group Bunzl nudged up as it announced the acquisition of two further businesses in the UK and the US.
Insurance provider Phoenix Group Holdings ticked higher after saying it has achieved its 2016 target for cash regeneration and will make at least £250m from the acquisition of the Axa businesses.
Online fashion retailer Boohoo.com was little changed despite lifting its guidance for annual revenue growth following strong trading through Black Friday and into the Christmas season.
There are no major UK data releases due but in the US, wholesale inventories are at 1500 GMT.
