London midday: Stocks rise after Eurozone manufacturing data

1st Feb 2012 11:56

Gains were extended by lunchtime after Eurozone manufacturing data suggested that the region may escape a recession. Financials were putting in a strong performance in London, led by ICAP which was rising over 7% at the midday mark.January's purchasing managers' index (PMI) for the Eurozone manufacturing sector compiled by Markit Economics set a five-month high of 48.8 in January, compared to 46.9 in the previous month. It is the second consecutive increase, although it remains below the 50 threshold. "Euro area manufacturing has started 2012 surprisingly well, suggesting the region may avoid a slide back into recession," said Markit's Chief Economist Chris Williamson.Elsewhere, investors seem to be showing confidence that Greece is closer to an agreement in its debt-swap talks, with the country's finance ministry Evangelos Venizelos being quoted as saying that they are "one formal step away" from a deal. Meanwhile, a Greek spokesman has said that significant progress has been made on the second bailout deal and private sector involvement, according to market chatter.There are rumours circulating of a so-called gross domestic product warrant, which would pay private creditors more if Greece's economy begins to expand, easing the loss that they are taking on the country's debt. According to Bloomberg, the government and bondholders are near a "tentative accord" that would include the warrants.ICAP SURGES AFTER RAISING GUIDANCE Inter-dealer broker ICAP rose strongly after saying profits for the current fiscal year will be towards the top end of expectations. The current range of analyst pre-tax profit forecasts for the year to March 31st runs from £336m to £358m, with a median figure of £347.4m.Other financials were also heading higher on the improving outlook in the Eurozone. Banking peers RBS, Barclays and Lloyds were making gains. Details of the much-heralded senior management shake-up at Lloyds have been revealed, with the group adopting a structure that reduces the number of bosses reporting directly to Group Chief Executive António Horta-Osório to five.ARM is among the few fallers of the day, pulling back after yesterday's well-received results. The Financial Times' Lex column is today singing the virtues of ARM Holdings' "strong fundamentals", but adds that the company's valuation, at 47 times expected earnings, is "through the roof." Imperial Tobacco was performing well despite seeing reported stick equivalent volumes fall 7% in the three months to December 31st, due to the trading difficulties in Syria, Spain, USA and Ukraine. Water utility company United Utilities is on track to deliver full year results in line with expectations on the back of a steadily rising revenue. Shares nudged higher. Miners were making gains: Rio Tinto and BHP Billiton were higher after doing a spot of trading that will see Rio gain majority control of South African miner Richards Bay Minerals; while Antofagasta rose after seeing full-year production rise 22.9% to surpass its earlier guidance after a strong end to the year. Shares dipped into the red. BCFTSE 100 - RisersICAP (IAP) 358.50p +6.70%Weir Group (WEIR) 2,043.00p +4.50%Kingfisher (KGF) 266.80p +4.34%Schroders (SDR) 1,510.00p +4.14%Barclays (BARC) 221.15p +4.05%Royal Bank of Scotland Group (RBS) 27.67p +3.94%Rolls-Royce Holdings (RR.) 764.00p +3.87%Burberry Group (BRBY) 1,393.00p +3.80%Xstrata (XTA) 1,113.50p +3.63%Next (NXT) 2,705.00p +3.28%FTSE 100 - FallersARM Holdings (ARM) 602.50p -1.15%Capita (CPI) 609.50p -0.89%Shire Plc (SHP) 2,095.00p -0.52%Petrofac Ltd. (PFC) 1,450.00p -0.34%Serco Group (SRP) 507.50p -0.10%Smith & Nephew (SN.) 614.50p -0.08%British Sky Broadcasting Group (BSY) 689.50p -0.07%AstraZeneca (AZN) 3,053.50p -0.03%FTSE 250 - RisersOcado Group (OCDO) 95.35p +9.47%Regus (RGU) 98.05p +6.58%Kesa Electricals (KESA) 71.50p +6.08%Talvivaara Mining Company (TALV) 329.20p +5.18%RPS Group (RPS) 218.60p +4.84%Bovis Homes Group (BVS) 465.10p +4.68%Morgan Crucible Co (MGCR) 325.10p +4.00%Kentz Corporation Ltd. (KENZ) 461.60p +3.96%Rank Group (RNK) 136.90p +3.95%Diploma (DPLM) 409.40p +3.91%FTSE 250 - FallersAquarius Platinum Ltd. (AQP) 163.70p -3.99%Misys (MSY) 315.70p -2.29%London & Stamford Property Ltd. (LSP) 103.90p -1.05%Hikma Pharmaceuticals (HIK) 711.00p -0.97%Hansteen Holdings (HSTN) 72.75p -0.89%Aberforth Smaller Companies Trust (ASL) 577.50p -0.77%COLT Group SA (COLT) 91.40p -0.65%Rentokil Initial (RTO) 74.75p -0.40%Edinburgh Inv Trust (EDIN) 475.50p -0.31%BH Macro Ltd. GBP Shares (BHMG) 2,034.00p -0.25%