London close: Stocks edge higher on hopes for Chinese reopening

(Sharecast News) - UK shares outperformed European counterparts after returning from the Christmas break on Wednesday, as optimism over China's easing of Covid-19 curbs outweighed concerns around skyrocketing Covid case numbers in the country.

Indeed, those high and rising case numbers prompted health authorities in Italy to announce that all arrivals from China would now be tested.

Health authorities in Germany said on Wednesday they were watching the situation closely and reports indicated their US counterparts were mulling preventive measures too.

The FTSE 100 was up 0.32% to 7,497.19, while the second-tier index was up by 0.29% at 18,885.50.

Sterling was also above the waterline, last trading up 0.07% on the dollar at $1.2034.

Miners, including Antofagasta, Glencore and Anglo American were up on higher copper prices driven by hopes of China reopening its borders, while HSBC, which also had a large exposure to the region was also on the rise.

"UK markets have reopened higher, playing catch up after the FTSE 100 which was closed for a public holiday on Tuesday," said Interactive Investor analyst Victoria Scholar.

"The UK index could end the year in positive territory despite the broad pressures on global equity markets, weighed down by rising interest rates, inflation, and the threat of recession."

It was quiet day on the economic save for the Richmond Fed Manufacturing Index which printed at 1.0 for December versus a reading of -9 in November (consensus: -10).

The US National Association of Realtors' Pending Home Sales Index meanwhile printed at down by 4.0% month-on-month for November.

On London's equity markets, AstraZeneca edged up after it said its immunotherapies Imfinzi and Imjudo have been approved in Japan for the treatment of three cancer types - advanced liver, biliary tract and lung.

Elsewhere, Fresnillo was also higher after confirming that the final testing of the downstream power distribution and control systems at the Juanicipio project was now complete.

Specialist engineering group IMI was a touch lower as it completed its acquisition of Heatmiser.

The FTSE 250 company announced the acquisition plans on 8 November, for an enterprise value of £110m, with up to a further £8m based on Heatmiser's future financial performance. It said Heatmiser would become part of IMI Hydronic Engineering.

Market Movers

FTSE 100 (UKX) 7,497.19 0.32% FTSE 250 (MCX) 18,885.50 0.29%

FTSE 100 - Risers

Antofagasta (ANTO) 1,591.50p 2.75% Fresnillo (FRES) 891.60p 2.18% JD Sports Fashion (JD.) 122.15p 2.17% Kingfisher (KGF) 236.10p 1.72% Persimmon (PSN) 1,258.00p 1.66% Burberry Group (BRBY) 2,035.00p 1.55% Barratt Developments (BDEV) 409.90p 1.54% HSBC Holdings (HSBA) 518.00p 1.51% Experian (EXPN) 2,848.00p 1.46% BAE Systems (BA.) 867.00p 1.40%

FTSE 100 - Fallers

Scottish Mortgage Inv Trust (SMT) 690.00p -4.38% Airtel Africa (AAF) 111.40p -1.60% International Consolidated Airlines Group SA (CDI) (IAG) 126.22p -1.53% Tesco (TSCO) 223.50p -1.41% Flutter Entertainment (CDI) (FLTR) 11,380.00p -1.04% Frasers Group (FRAS) 721.00p -0.96% GSK (GSK) 1,440.20p -0.87% Coca-Cola HBC AG (CDI) (CCH) 1,934.00p -0.85% Shell (SHEL) 2,350.00p -0.70% Smith & Nephew (SN.) 1,098.00p -0.68%

FTSE 250 - Risers

Abrdn Private Equity Opportunities Trust (APEO) 434.00p 5.84% Paragon Banking Group (PAG) 580.50p 4.69% Synthomer (SYNT) 146.10p 4.28% PZ Cussons (PZC) 216.50p 3.34% Dr. Martens (DOCS) 188.20p 3.29% Clarkson (CKN) 3,250.00p 3.17% Hochschild Mining (HOC) 71.85p 3.16% Future (FUTR) 1,291.00p 3.12% OSB Group (OSB) 486.20p 2.79% Jupiter Fund Management (JUP) 130.30p 2.52%

FTSE 250 - Fallers

Ferrexpo (FXPO) 164.50p -4.86% Warehouse Reit (WHR) 102.60p -4.29% 4Imprint Group (FOUR) 4,290.00p -4.24% Wizz Air Holdings (WIZZ) 1,999.50p -4.05% Darktrace (DARK) 255.80p -3.83% Volution Group (FAN) 366.00p -3.82% Petershill Partners (PHLL) 165.00p -2.60% Supermarket Income Reit (SUPR) 99.40p -2.55% Edinburgh Worldwide Inv Trust (EWI) 172.40p -2.48% Carnival (CCL) 566.20p -2.38%