28th Aug 2015 07:36
LONDON (Alliance News) - London share prices were higher at the open Friday, with mining and oil-related stocks pushing higher, as investors await the release of UK GDP data, due at 0930 BST.
The FTSE 100 was up 0.2% at 6,203.99, the FTSE 250 was up 0.4% at 16,981.55 and the AIM All-Share was up 0.4% at 729.63. In Europe, the CAC 40 in Paris and the DAX 30 in Frankfurt were both up 0.2%.
Miners continued their rebound after the FTSE 350 Mining sector, up 2.1%, had lost more than a 9% this month. Glencore was up 2.3%, but still trading close to all-time lows, Anglo American up 1.8%, BHP Billiton up 1.5%, Fresnillo up 1.6% and Randgold Resources up 1.5%.
Meanwhile, oil-related stocks were also leading the FTSE 100 gainers at the open, benefiting from a jump in Brent and West Texas Intermediate crude oil prices overnight. Royal Dutch Shell 'A' was up 2.4%, BG Group was up 2.0% and BP was up 1.9%.
Brent oil was at USD47.56 a barrel, having traded at USD45.81 a barrel at the London close on Thursday, while WTI was at USD42.71 a barrel, having traded at USD41.92 a barrel when European markets closed.
Debenhams was the worst FTSE 250 performer after being downgraded to Sell from Neutral by UBS.
Rotork was up 1.2% after it said it has agreed a GBP125.0 million deal to acquire Manchester-based pneumatic and hydraulic instrument valves and components company Bifold Group. The FTSE 250 actuators and flow control products manufacturer said Bifold has leading positions in a number of niche sectors, including subsea and wellhead control systems. It will be integrated into Rotork's instruments division following the acquisition.
Meanwhile, Bacanora Minerals, up 35% and Rare Earth Minerals, up 22%, were amongst the biggest gainers in the AIM All-Share. Both companies said their Sonora lithium project in Northern Mexico has signed a lithium supply deal with Tesla Motors, the US-based electric sports car and energy storage products company.
On condition that the Sonora project reaches certain performance milestones in the next two years, Tesla will buy lithium hydroxide to feed the manufacturing of batteries at its Gigafactory in Nevada. One of the conditions will be that the Sonora project can supply lithium hydroxide in accordance with volumes and timeframes which Tesla will determine.
On the UK economic front, Lloyds Bank notes the first estimate for UK GDP for the second quarter indicated that activity picked up by 0.7% quarter-on-quarter from a 0.4% print in the first quarter.
"While we expect the preliminary figure to be repeated, there will be some interest in the expenditure breakdown which is anticipated to show a strong, albeit likely temporary, contribution from net trade," the bank said.
In Asia, the Japanese Nikkei 225 closed up 3.0%, while in China, the Shanghai Composite finished up 4.8%, while the Hang Seng was still trading up 0.7%.
Amid concerns about economic growth of the country and several stimulus measures by the People's Bank of China, data from the National Bureau of Statistics showed Friday that profits earned by Chinese industrial enterprises decreased in July after rising in the previous month.
Industrial profits fell 2.9% year-over-year to CNY471.56 billion in July following a 0.3% rise in the preceding month. The agency said the fall in industrial profit for the month was impacted by a slowdown in industrial production and sales growth, a decline in industrial producer prices and raw material purchase price, and a fall in investment income.
Wall Street enjoyed another positive session Thursday, with the Dow 30 closing up 2.3%, the S&P 500 up 2.4% and the Nasdaq Composite up 2.6%.
Investors are focusing on the Jackson Hole Symposium, which started on Thursday, where key Fed officials are expected to speak. While US Fed Chair Janet Yellen is not expected to attend, Fed Vice-Chairman Stanley Fischer will speak on Saturday.
Also in the economic calendar, eurozone consumer confidence data are due at 1000 BST, while the German consumer price index is due at 1300 BST. In the US, personal income and spending are expected at 1330 BST, while the Reuters/Michigan consumer sentiment index is due at 1500 BST.
By Daniel Ruiz; [email protected]
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