London open: Stocks jump at the start of 2023, helped by softness in sterling

(Sharecast News) - Stocks in London started the new year on the front foot as traders returned from the holiday break amid a big drop in sterling. As of 0843 GMT, the FTSE 100 was ahead by 1.57% to 7,568.90, alongside a 0.78% decline in cable to 1.1952.

The euro was also moving quickly lower, falling 0.84% to 1.0577.

China's yuan and the Japanese yen were firmer at the start of the session versus the Greenback, but had since stabilised.

Survey compiler Caixin's China manufacturing sector Purchasing Managers' Index published the day before slipped from a reading of 49.4 for November to 49.0 in December (consensus: 49.1).

"In any case, the overall short-term picture for China's economy is still dark as it struggles with mountains of Covid infections," said Duncan Wrigley, chief China+ economist at Pantheon Macroeconomics.

That was on top of a decrease in the official factory PMI at the weekend from 47 to 48 with subindexes tracking new order flows having weakened in both surveys.

Nonetheless, Wrigley pointed to the rise in the Caixin survey's measure of future output from 56.1 to 59.3 which he said provided a ray of hope.

Still ahead for later in the session, at 0930 GMT S&P Global was to release its final reading for its UK factory PMI in December.

It would be followed by a preliminary reading for German consumer prices at 1300 GMT and S&P Global's US factory PMI at 1445 GMT.

In the background meanwhile, investors were expectant ahead of Friday's monthly US non-farm payrolls report for December and Thursday's JOLTS labour market survey, also in the US.

In equity news, Ferrexpo owner Kostyantin Zhevago, detained during the previous week by French police, resigned from the company's board, the iron ore pellet producer and exporter said on Tuesday.

Budget airline Wizz Air carried 4,180,310 passengers, representing a 58.4% increase compared to December 2021, at a load factor of 84.5%.

Market Movers

FTSE 100 (UKX) 7,585.66 0.00% FTSE 250 (MCX) 19,150.79 0.00% techMARK (TASX) 4,422.50 0.00%

FTSE 100 - Risers

Rolls-Royce Holdings (RR.) 99.21p 6.45% International Consolidated Airlines Group SA (CDI) (IAG) 130.10p 5.05% Barratt Developments (BDEV) 414.10p 4.36% BP (BP.) 494.45p 4.12% Persimmon (PSN) 1,266.50p 4.07% Prudential (PRU) 1,172.50p 3.99% Ocado Group (OCDO) 641.40p 3.99% Shell (SHEL) 2,418.50p 3.98% Taylor Wimpey (TW.) 105.65p 3.94% Barclays (BARC) 163.80p 3.33%

FTSE 100 - Fallers

Haleon (HLN) 323.45p -1.19% SSE (SSE) 1,700.50p -0.67% GSK (GSK) 1,433.40p -0.29% Reckitt Benckiser Group (RKT) 5,740.00p -0.24% Unilever (ULVR) 4,172.50p -0.23% Imperial Brands (IMB) 2,074.00p 0.14% Aveva Group (AVV) 3,218.00p 0.16% Diageo (DGE) 3,662.00p 0.33% Fresnillo (FRES) 905.60p 0.42% Coca-Cola HBC AG (CDI) (CCH) 1,983.50p 0.53%

FTSE 250 - Risers

Carnival (CCL) 610.80p 5.42% ASOS (ASC) 537.00p 5.19% TUI AG Reg Shs (DI) (TUI) 140.75p 4.96% Ferrexpo (FXPO) 164.30p 4.52% Synthomer (SYNT) 150.70p 4.51% Mitchells & Butlers (MAB) 144.20p 4.49% Urban Logistics Reit (SHED) 140.50p 4.46% Hochschild Mining (HOC) 73.30p 4.34% Currys (CURY) 55.90p 4.29% Hammerson (HMSO) 24.75p 3.99%

FTSE 250 - Fallers

Morgan Sindall Group (MGNS) 1,460.00p -4.58% Edinburgh Worldwide Inv Trust (EWI) 174.40p -1.02% HarbourVest Global Private Equity Limited A Shs (HVPE) 2,235.00p -0.89% Caledonia Investments (CLDN) 3,580.00p -0.83% Premier Foods (PFD) 107.80p -0.74% Smithson Investment Trust (SSON) 1,302.00p -0.46% PZ Cussons (PZC) 209.00p -0.24% Bank of Georgia Group (BGEO) 2,600.00p -0.19% Capricorn Energy (CNE) 261.40p -0.15% Mediclinic International (MDC) 497.60p -0.08%