London open: Stocks rise as miners gain on China data

(Sharecast News) - London stocks rose in early trade on Wednesday, with miners pacing the advance on the back of encouraging Chinese data, but housebuilders under the cosh after a profit warning from Persimmon. At 0830 GMT, the FTSE 100 was up 0.3% at 7,903.25.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "March winds of hope are blowing through markets that China's reopening will offset weakness in other countries which are beset with stubborn inflation and a worsening cost of living crisis.

"The vast Chinese economy is snapping back from the pain of the pandemic with the latest reading of the closely watched survey on factory activity showing better-than-expected growth in February. The Caixin General Manufacturing PMI rose to 51.6, exceeding forecasts of 50.2, up from 49.2 in January.

"A level above 50 indicates expansion and this is the best result since May 2021 before the onerous effects of the rolling lockdowns took effect, and the first jump in activity since July, with new orders, increased staff levels and higher output all showing up."

On home shores, the latest survey from mortgage lender Nationwide showed that house prices fell by 1.1% year-on-year in February, the first annual decline since June 2020.

Prices declined 0.5% month-on-month, marking the sixth consecutive monthly drop, according to the building society's key index. Across the UK, the average house price in February was £257,406.

Prices are now 3.7% lower than their peak last August, and February's negative annual price growth was the weakest seen since November 2012, Nationwide added.

Elsewhere, the latest BRC-NielsenIQ Shop Price Index showed that shop price inflation hit a fresh high in February as the cost of food continued to soar. Annual inflation was a record 8.4% compared to 8% in January.

Within that, non-food inflation was 5.3%, up from 5.1% in January, while food surged to 14.5%, the highest inflation rate in the food category on record. In January, it was 13.8%.

Still to come, mortgage approvals, consumer credit and manufacturing PMI are all due at 0930 GMT.

In equity markets, miners were the top performers after the Chinese data, with Rio, Glencore and Antofagasta all up.

Weir was the standout gainer on the FTSE 100, however, after the engineering group posted a rise in annual profits on the back of a booming mining industry.

Aston Martin rallied as it reported a sharp jump in full-year revenues amid increasing output and record total average selling prices.

Dettol and Nurofen maker Reckitt Benckiser ticked up after saying it swung to a full-year profit as it benefited from higher prices.

On the downside, housebuilders slid after a profit warning from Persimmon, which said it had been hit by a spike in mortgage rates. The company said completions would likely be down "markedly" in the current year, which would hit both margin and profits.

Persimmon tumbled more than 8%, while Taylor Wimpey, Barratt, Berkeley, Redrow and Bellway all fell.

Elsewhere, media group Future was in the red after an initiation at 'sell' by Canaccord Genuity.

Market Movers

FTSE 100 (UKX) 7,903.25 0.34% FTSE 250 (MCX) 19,906.88 0.02% techMARK (TASX) 4,605.67 0.00%

FTSE 100 - Risers

Weir Group (WEIR) 1,986.00p 4.58% Rio Tinto (RIO) 5,922.00p 3.68% Glencore (GLEN) 512.10p 3.38% Antofagasta (ANTO) 1,622.00p 3.31% Endeavour Mining (EDV) 1,727.00p 1.77% Fresnillo (FRES) 775.40p 1.57% Prudential (PRU) 1,284.00p 1.14% BP (BP.) 556.70p 1.13% Burberry Group (BRBY) 2,489.00p 0.93% Hargreaves Lansdown (HL.) 836.80p 0.87%

FTSE 100 - Fallers

Taylor Wimpey (TW.) 119.25p -3.21% Barratt Developments (BDEV) 454.30p -3.15% Unite Group (UTG) 971.00p -1.22% BAE Systems (BA.) 889.80p -0.91% Berkeley Group Holdings (The) (BKG) 4,161.00p -0.83% SEGRO (SGRO) 816.60p -0.83% Intertek Group (ITRK) 4,144.00p -0.72% Imperial Brands (IMB) 1,992.00p -0.65% InterContinental Hotels Group (IHG) 5,570.00p -0.64% Whitbread (WTB) 3,071.00p -0.58%

FTSE 250 - Risers

Fidelity China Special Situations (FCSS) 264.00p 4.55% Aston Martin Lagonda Global Holdings (AML) 208.00p 3.43% Network International Holdings (NETW) 293.40p 3.09% Edinburgh Worldwide Inv Trust (EWI) 169.80p 3.03% Tullow Oil (TLW) 36.00p 2.92% Shaftesbury (SHB) 427.20p 2.10% Domino's Pizza Group (DOM) 292.20p 2.03% Serco Group (SRP) 158.90p 1.86% Mitchells & Butlers (MAB) 165.50p 1.85% 4Imprint Group (FOUR) 4,555.00p 1.67%

FTSE 250 - Fallers

Sirius Real Estate Ltd. (SRE) 81.90p -2.38% Future (FUTR) 1,369.00p -2.35% Wetherspoon (J.D.) (JDW) 550.50p -2.13% Capital & Counties Properties (CAPC) 124.00p -1.90% Bellway (BWY) 2,175.00p -1.89% Redrow (RDW) 500.00p -1.86% Indivior (INDV) 1,500.00p -1.83% Helios Towers (HTWS) 108.40p -1.72% SSP Group (SSPG) 255.00p -1.70% Allianz Technology Trust (ATT) 221.50p -1.34%