London open: Stocks rise ahead of Yellen testimony
(Sharecast News) - London stocks rose in early trade on Tuesday as investors awaited a testimony on stimulus by incoming US Treasury Secretary Janet Yellen.
At 0900 GMT, the FTSE 100 was up 0.5% at 6,754.49.
Spreadex analyst Connor Campbell said: "Janet Yellen's claim that the US needs to 'act big' with its Covid-19 stimulus has re-heated the markets hopes for the Biden administration's relief package.
"The former Fed chair, and soon-to-be Treasury Secretary, is set to face the Senate Finance Committee this evening, and has stressed in her prepared statement that the 'smartest' thing to do is aggressively pursue the previously announced $1.9 trillion plan.
"How Yellen fares this evening will give the markets - and the incoming administration - an early indication of the resistance to the package, and what can be expected from the first few weeks of Biden's tenure.
"Following a very quiet Monday, Yellen's comments have acted as a reminder that stimulus is incoming, in some form, allowing for a more positive start to Tuesday's trading."
In equity markets, Rolls-Royce was the standout gainer following an El Economista report that Carlyle, CVC and KKR are among bidders for the engine maker's ITP Aero business.
Credit-checking firm Experian gained as it said its third-quarter performance was better than it had expected, with organic revenue growth of 7% despite the pandemic.
Investment platform AJ Bell was boosted by an upgrade to 'hold' from 'sell' at Berenberg.
Airlines were also in the black, with British Airways parent IAG and budget carrier easyJet both flying higher.
On the downside, electrical retailer AO World slumped despite posting a 67% rise in UK third quarter revenues as locked consumers bought more goods online during the coronavirus pandemic. Traders pointed to the fact that AO highlighted "significantly higher" costs due to the pandemic.
Outside the FTSE 350, fashion brand Superdry tumbled after it warned over its ability to continue as a going concern, reporting a widening of its interim losses and a slump in revenue as it took a hit from the Covid crisis and related store closures.
Market Movers
FTSE 100 (UKX) 6,754.49 0.50%
FTSE 250 (MCX) 20,714.78 0.37%
techMARK (TASX) 4,173.82 0.82%
FTSE 100 - Risers
Rolls-Royce Holdings (RR.) 108.10p 3.69%
HSBC Holdings (HSBA) 415.25p 3.04%
Smith & Nephew (SN.) 1,604.00p 2.20%
International Consolidated Airlines Group SA (CDI) (IAG) 164.35p 2.14%
InterContinental Hotels Group (IHG) 4,861.00p 1.52%
Berkeley Group Holdings (The) (BKG) 4,535.00p 1.52%
Experian (EXPN) 2,714.00p 1.23%
Glencore (GLEN) 280.15p 1.19%
BAE Systems (BA.) 493.60p 1.15%
Taylor Wimpey (TW.) 165.30p 1.13%
FTSE 100 - Fallers
JD Sports Fashion (JD.) 826.00p -1.64%
Ocado Group (OCDO) 2,538.00p -1.51%
B&M European Value Retail S.A. (DI) (BME) 496.40p -1.51%
Next (NXT) 7,986.00p -1.41%
Kingfisher (KGF) 265.50p -1.19%
Ferguson (FERG) 8,984.00p -1.14%
Flutter Entertainment (FLTR) 14,630.00p -1.08%
Barclays (BARC) 149.78p -1.02%
Halma (HLMA) 2,510.00p -0.99%
Standard Chartered (STAN) 486.10p -0.98%
FTSE 250 - Risers
AJ Bell (AJB) 474.50p 5.33%
easyJet (EZJ) 850.20p 4.19%
Aberforth Smaller Companies Trust (ASL) 1,238.00p 3.17%
Vectura Group (VEC) 127.20p 3.08%
Network International Holdings (NETW) 340.00p 3.03%
Wizz Air Holdings (WIZZ) 4,432.00p 2.93%
Hammerson (HMSO) 23.60p 2.92%
IntegraFin Holding (IHP) 570.00p 2.89%
BlackRock World Mining Trust (BRWM) 555.00p 2.78%
Centrica (CNA) 50.86p 2.71%
FTSE 250 - Fallers
AO World (AO.) 352.50p -6.62%
Britvic (BVIC) 760.50p -3.49%
Wood Group (John) (WG.) 338.70p -2.95%
Vietnam Enterprise Investments (DI) (VEIL) 602.00p -2.90%
Assura (AGR) 74.40p -1.98%
Domino's Pizza Group (DOM) 319.00p -1.91%
Morgan Advanced Materials (MGAM) 311.00p -1.89%
VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 454.00p -1.84%
Future (FUTR) 1,772.00p -1.45%
Travis Perkins (TPK) 1,395.00p -1.41%
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