London midday: China reassurance boosts FTSE 100

14th Jun 2011 12:06

Stocks have moved higher, helped by some reassuring economic figures from China.Chinese industrial production rose by 13.3% in May, assuaging some observers' fears that economic expansion in the fast-growing country could slow.The excitement is in the FTSE 250 today, with Avis Europe soaring on news the Avis car hire brand is set to return to single ownership after US operator Avis Budget launched an agreed bid.Avis Budget will offer 315p cash for each Avis Europe share in a deal that values the UK listed company at around £636m. The mid-market price of Avis Europe on the day before the bid was announced was 196.6p.In the FTSE 100, supermarket giant Tesco is weaker after failing to return to sales growth in the UK. In the 13 weeks to 28 May, Tesco's UK like-for-like sales excluding petrol and the impact of VAT were down by 0.1% from the same period the previous year, in line with analysts' predictions, having contracted over the previous quarter. Total sales grew by 7% including petrol and VAT.Another FTSE 100 colossus, commodity trading giant Glencore, demonstrated the strength of the markets that propelled it straight into the FTSE 100 after its flotation, revealing a 39% rise in revenues over the first quarter in its first interim management statement as a listed company. Its shares are lower too.Imperial Tobacco is burning out again. Credit Suisse has cut its target price on the tobacco group to 2,350p from 2,420p after a profit warning on the back of price competition in Spain yesterday.Drug behemoth GlaxoSmithKline has taken another step towards increasing its presence in emerging markets, with the acquisition of the remaining 51% interest in a joint venture established in China to develop 'flu vaccines. It paid Shenzhen Neptunus Interlong Bio-Technique £24m for the stake in the joint venture, which is called Shenzhen GSK-Neptunus Biologicals (GSKNB). Glaxo will become the sole owner of the JV after the agreement is approved by the Chinese authorities. Oilfield services firm Wood Group has extended its contract with TAQA Bratani Limited, the energy company that is 51% owned by Abu Dhabi Water and Electricity Authority, for a further five years.AIM-listed asset finance provider to small and medium enterprise (SMEs) 1pm moved up more than 25% after saying it will announce a return to profitability for the full year following improved trading.Shares in Pursuit Dynamics fell after the maker of food and drink manufacturing technology reported bigger losses as it upped spending on product development. Pre-tax losses in the six months to 31 March totalled £7.15m from £3.63m over the same period the previous year, even as revenues rose to £105,000 from £79,000.