London close: Footsie rises despite China worries

8th Jul 2015 16:30

UK stocks advanced on Wednesday in spite of a sell-off in China overnight and ongoing uncertainties surrounding Greece, with traders eagerly awaiting reform proposals from Athens on Thursday.The FTSE 100 ended the day up 0.91% at 6,490.70, after settling at 6,432.21 on Tuesday, its lowest since 16 January.Eurozone leaders have warned Greece that a new bailout deal should be struck within the next five days or the country would face a banking collapse as well as a potential exit from the Eurozone. European Commission president Jean-Claude Juncker said that although he was "strongly" against Grexit, there was a "Grexit scenario prepared in detail".IG analyst Chris Beauchamp said: "guarded optimism is the theme today, as the Eurozone gives Greece one final deadline".Shares in homebuilders and speciality lenders were sideswiped by the Chancellor's decision to reduce the tax benefits that individual buy-to-let landlords currently enjoy by phasing out higher tax rate interest relief.Meanwhile, Chinese stocks suffered another bout of panic selling on Wednesday with the Hang Seng down 7.5% and the Shanghai Composite dropping 5.9% despite measures by the government to stabilise markets.A fresh wave of China-listed companies announced trading halts before the open, taking the total to around 1,300 or 45% of the country's listed stocks.Approximately 40% of China's listed companies were suspended from trading at the start of the session. In a curious coincidence, trading in NYSE cash equities was halted about two hours into the trading session.Barclays jumps on CEO exitShares of homebuilders and speciality lenders such as Paragon or OneSavings Bank were hammered by the Chancellors decision to begin phasing out the higher rate of tax relief for individual buy-to-let landlords, starting from April 2017.BAE Systems outperformed as Osborne committed the UK to maintain defence spending at 5% of gross domestic product over the next five years.Barclays was a high riser after chief executive Antony Jenkins was given the boot, with the bank saying that "a change in leadership is required" and the search for his successor was underway. Chairman John McFarlane will become executive chairman pending the appointment of a new CEO.Sector peers Standard Chartered and HSBC, however, were trading firmly lower on their exposure to the Chinese economy following the sell-off in Shanghai overnight.RBS edged higher, helped by Charles Stanley raising its rating from 'reduce' to 'hold', saying the stock is now "fairly valued" despite remaining misconduct uncertainties.Wholesaler Booker inched lower after sales were underwhelming in the first quarter, with just 0.2% revenue growth for the first 12 weeks of the financial year, compared to 1% in the preceding quarter.Shares in Drax plummeted to an all-time low after Chancellor George Osborne said in the Budget that the government will remove the exemption for electricity from renewable sources. RBC Capital Markets said the move was "a big negative for renewable generators".Market MoverstechMARK 3,081.82 +0.50%FTSE 100 6,490.70 +0.91%FTSE 250 17,112.86 -0.58%FTSE 100 - RisersAviva (AV.) 497.10p +3.50%BAE Systems (BA.) 460.90p +3.46%Glencore (GLEN) 237.90p +3.17%Royal Dutch Shell 'B' (RDSB) 1,812.50p +2.90%Hikma Pharmaceuticals (HIK) 2,010.00p +2.87%Royal Dutch Shell 'A' (RDSA) 1,801.50p +2.77%Old Mutual (OML) 204.50p +2.76%Wolseley (WOS) 4,020.00p +2.39%Unilever (ULVR) 2,777.00p +2.32%Imperial Tobacco Group (IMT) 3,163.00p +2.23%FTSE 100 - FallersBarratt Developments (BDEV) 594.50p -5.71%Taylor Wimpey (TW.) 176.20p -5.01%Persimmon (PSN) 1,876.00p -4.67%Marks & Spencer Group (MKS) 521.50p -2.52%Lloyds Banking Group (LLOY) 82.33p -1.99%Morrison (Wm) Supermarkets (MRW) 167.40p -1.47%Standard Chartered (STAN) 984.10p -1.46%ARM Holdings (ARM) 1,017.00p -1.36%Kingfisher (KGF) 341.10p -1.22%Aberdeen Asset Management (ADN) 385.30p -1.21%FTSE 250 - RisersDaejan Holdings (DJAN) 6,055.00p +4.58%Genus (GNS) 1,462.00p +4.28%Vedanta Resources (VED) 470.50p +3.38%Amec Foster Wheeler (AMFW) 802.50p +3.15%Premier Oil (PMO) 136.80p +2.78%Acacia Mining (ACA) 293.60p +2.77%Cairn Energy (CNE) 166.20p +2.59%Just Retirement Group (JRG) 176.50p +2.56%Big Yellow Group (BYG) 635.50p +2.50%esure Group (ESUR) 266.20p +2.27%FTSE 250 - FallersDrax Group (DRX) 254.60p -28.06%Aldermore Group (ALD) 253.70p -14.89%Shawbrook Group (SHAW) 326.40p -10.58%Fidelity China Special Situations (FCSS) 122.40p -10.20%OneSavings Bank (OSB) 280.50p -10.01%Virgin Money Holdings (UK) (VM.) 395.00p -8.99%Berkeley Group Holdings (The) (BKG) 3,101.00p -7.02%Bellway (BWY) 2,233.00p -6.73%Crest Nicholson Holdings (CRST) 513.50p -6.47%Paragon Group Of Companies (PAG) 378.80p -5.32%