London midday: Stocks higher after UK retail sales, Bernanke

18th Jul 2013 11:35

An improvement in UK retail sales and comments from Ben Bernanke were lifting markets higher on Thursday morning, with London Stock Exchange leading the risers on the FTSE 100 after a strong first-quarter update.UK retail sales increased in June as shoppers snapped up discounted goods in department stores. Sales rose 0.2% from May, in line with market forecasts, and 2.2% from a year earlier - ahead of a 1.7% expected rise."With a second consecutive monthly rise in UK retail sales volumes, evidence that a consumer-led recovery is underway is growing," said Martin Beck, UK Economist at Capital Economics.Meanwhile, in his semi-annual testimony to Congress yesterday, Federal Reserve Chairman Bernanke said that the Fed's $85bn-a-month quantitative easing (QE) programme is "by no means on a pre-set course", saying that it very much depends on the economic outlook. This prompted a positive response from markets yesterday with the FTSE 100 extending gains this morning. Analysts said that yesterday's worse-than-expected housing starts figures have reinforced the notion that the US recovery still remains fragile and that stimulus is still necessary for the time being. Investors will be keeping their eyes peeled for further US economic data today, with initial jobless claims figures and the Philly Fed manufacturing index due out later on. "After reiterating the Fed's intention to be data-led in their QE tapering plans, there's a fair chance that today's jobless claims number at 13:30 could see spawn equity market volatility," said Matt Basi, Head of UK Sales Trading at CMC Markets.However the focus is likely to remain fixed on Bernanke as he testifies in front of the Senate Banking Committee this afternoon.FTSE 100: LSE rises as Q1 revenue jumpsExchange operator London Stock Exchange was a high riser after posting a 39% increase in first-quarter revenue, after growth across all business divisions, as it confirmed that Ian Axe will leave his position as CEO of LCH.Clearnet.easyJet was flying high after JPMorgan Cazenove raised its recommendation for the shares to 'overweight' and hiked its target price. The broker kept its 'overweight' position on sector peer IAG, causing shares to edge higher this morning.Anglo American, one of the world's largest mining groups, was slightly lower after reporting mixed production results in the second quarter as increases to copper, platinum and diamond output were offset by declines in iron ore, coal and nickel. Mining counterpart BHP Billiton fell after Beaufort Securities cut its rating to 'hold'.Technology firm Smiths Group was subdued after falling sharply yesterday on the back of a profit warning. JPMorgan Cazenove this morning downgraded the stock to 'neutral'.FTSE 250: Sports Direct jumps after full-year resultsInvestors celebrated Sports Direct's announcement that full-year revenues at the sports retailer rose 20.9% to £2.2bn, lifting pre-tax profits by 40% to £207m. "2012/13 was a record-breaking year for the Group and for British sport. We are pleased that both have continued to be successful this year and that our strategy of being the Consumers' Champion continues to reap rewards," said Chief Executive Dave Forsey.Reinforced polymer technology firm Fenner gained after saying it continued to make progress in the third quarter. The company reiterated results for the full year are expected to be in line with company expectations.FTSE 100 - RisersLondon Stock Exchange Group (LSE) 1,556.00p +5.14%easyJet (EZJ) 1,397.00p +3.48%WPP (WPP) 1,203.00p +3.00%International Consolidated Airlines Group SA (CDI) (IAG) 280.20p +2.37%Travis Perkins (TPK) 1,666.00p +2.02%Marks & Spencer Group (MKS) 482.50p +1.88%RSA Insurance Group (RSA) 129.90p +1.48%Sainsbury (J) (SBRY) 384.60p +1.26%Compass Group (CPG) 894.50p +1.19%Wolseley (WOS) 3,261.00p +1.18%FTSE 100 - FallersFresnillo (FRES) 1,017.00p -2.40%Tate & Lyle (TATE) 844.00p -1.80%Randgold Resources Ltd. (RRS) 4,431.00p -1.60%Sage Group (SGE) 357.40p -1.30%Aggreko (AGK) 1,772.00p -1.06%Weir Group (WEIR) 2,168.00p -0.87%Old Mutual (OML) 197.50p -0.75%Glencore Xstrata (GLEN) 269.90p -0.75%Tullow Oil (TLW) 1,094.00p -0.73%Smith & Nephew (SN.) 783.50p -0.57%FTSE 250 - RisersSports Direct International (SPD) 628.00p +4.58%Fenner (FENR) 335.50p +4.06%Barr (A.G.) (BAG) 550.50p +3.87%Go-Ahead Group (GOG) 1,607.00p +3.54%Euromoney Institutional Investor (ERM) 1,106.00p +3.27%888 Holdings (888) 156.60p +2.35%Halfords Group (HFD) 375.10p +2.21%Ashtead Group (AHT) 717.50p +2.14%Greggs (GRG) 444.00p +2.09%Crest Nicholson Holdings (CRST) 345.00p +1.80%FTSE 250 - FallersSoco International (SIA) 354.50p -4.65%Salamander Energy (SMDR) 130.40p -4.05%Rank Group (RNK) 159.00p -3.64%Man Group (EMG) 86.30p -3.20%Ferrexpo (FXPO) 160.60p -2.49%3i Group (III) 372.80p -2.25%esure Group (ESUR) 305.50p -2.24%Evraz (EVR) 99.95p -2.11%Genus (GNS) 1,326.00p -2.07%Oxford Instruments (OXIG) 1,351.00p -2.03%BC