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London open: Stocks climb on Asian cues; Carillion crashes on profit warning
London stocks edged higher in early trade on Monday, taking their cue from a positive session in Asia following last week’s better-than-expected non-farm payrolls report.
At 0830 BST, the FTSE 100 was up 0.4% to 7,379.36, while the pound was flat against the dollar and the euro at 1.2891 and 1.1303, respectively.
Meanwhile, oil prices were in the black but off earlier highs, having rebounded from last week’s sell-off. West Texas Intermediate and Brent crude were up 0.2% to $44.30 a barrel and $46.79, respectively.
Despite the positive tone, Spreadex analyst Connor Campbell said equity markets “may face an uphill battle to keep hold of their momentum”, with little on the economic agenda.
Data released on Friday showed US employment rose by 222,000 in June compared to an upwardly-revised 152,000 gain May, comfortably beating expectations for a 177,000 payrolls increase. Investors were also digesting the latest Chinese inflation data released by the National Bureau of Statistics, which showed consumer prices rose an annual 1.5% in June, unchanged from May but below expectations of 1.6%.
Meanwhile, leaders of the G-20 group of countries concluded their summit in Hamburg over the weekend to discuss issues such as trade, climate change and defence.
In corporate news, Carillion shares nosedived after the facilities management and construction services company said its chief executive has resigned and suspended its 2017 dividends as it warned first-half profits would be lower and debt higher than expected.
Gold miner Centamin retreated after it said production at its Sukari mine was still down on last year, while TalkTalk ticked lower as its chief finance officer stepped down.
On the upside, asset manager Schroders was the standout gainer as RBC Capital Markets upgraded the stock to ‘outperform’ from ‘sector perform’ and lifted the price target to 3,400p from 3,300p.
On the 250, Aveva racked up healthy gains following a report in the Sunday Times that Schneider Electric was planning a fresh approach after two failed merger attempts.
Wood Group edged higher after being awarded a new three-year contract by Maersk to deliver mechanical and management services for the hook-up and commissioning of the Culzean gas condensate field in the UK central North Sea.
