London open: Markets extend gains as financial stocks rise

24th Apr 2013 08:20

Strong gains for financial stocks ensured that the FTSE 100 was firmly in positive territory on Wednesday morning, while growing speculation of a rate cut in Europe lifted sentiment.London's benchmark index surged by 2.0% on Tuesday as disappointing purchasing managers' indices from the Eurozone sparked speculation that the European Central Bank (ECB) would move to reduce rates at its next meeting.Market Strategist Ishaq Siddiqi from ETX Capital said: "Further weakness in Eurozone data is likely to lift expectations of a rate cut from the ECB next week. Traders are as such hesitant to build exposure in case of a disappointment by ECB chief Mario Draghi next week."However, the focus of markets for the time being will likely be on gross domestic product (GDP) growth figures from both the UK and US on Thursday and Friday. Consensus estimates are for a 0.1% expansion in UK GDP in the first quarter, and 3.1% growth in the States. FTSE 100: Standard Life, Barclays lead financials higherInsurance giant Standard Life was a strong riser after beating analysts' predictions in the first quarter after delivering strong sales and group assets under administration. The group recorded a 24% increase in long-term savings sales to £6.3bn and a 26% increase in long-term savings net flows to £1.4bn in the first quarter, compared to £5.0bn and £1.1bn, respectively, one year earlier. Barclays was broadly flat in early trading as its 25% fall in adjusted pre-tax profit in the first quarter was still slightly better than market forecasts.Sector peer Lloyds was making gains after saying that it will go ahead with its stock market flotation of 630 branches after the Co-op walked away from the planned purchase of the network.ENRC was also in demand this morning after announced that its Chairman Mehmet Dalman has decided to resign from the mining group.Insurance firm Aviva edged higher after saying that it has received €608m in cash from its Spanish partner Bankia following the settlement and transfer of its entire holding in joint venture Aseval.Several FTSE 100 constituents were trading ex-dividend this morning, meaning that new investors won't be able to get their hands on their latest dividend payments. These stocks include: Aggreko, Legal & General and Rolls-Royce.FTSE 250: Computacenter drops on cost guidanceComputacenter, the provider of IT infrastructure services and solutions, was a heavy faller early on after saying that it could see an increased provision for costs in the future as a result of "problem contracts" in Germany. Weakness in the region held back revenue growth in the first quarter.Construction, services and property firm Kier Group fell after offering £221m for smaller peer May Gurney, trumping Costain which had announced its intention to merge with the company last month.Online retailer N Brown surged after seeing a 2.6% increase in annual profits on 6.0% growth in revenue on the back of a growing trend towards shopping on the web.FTSE 100 - RisersStandard Life (SL.) 374.80p +6.33%Polymetal International (POLY) 774.00p +4.52%Eurasian Natural Resources Corp. (ENRC) 294.90p +4.46%Rio Tinto (RIO) 3,015.00p +3.64%Vedanta Resources (VED) 1,198.00p +3.28%Antofagasta (ANTO) 912.00p +3.17%International Consolidated Airlines Group SA (CDI) (IAG) 278.00p +3.12%Randgold Resources Ltd. (RRS) 4,975.00p +2.98%Evraz (EVR) 162.60p +2.78%Xstrata (XTA) 981.00p +2.72%FTSE 100 - FallersCentrica (CNA) 378.70p -3.66%Legal & General Group (LGEN) 168.30p -3.33%Rexam (REX) 509.50p -2.39%Tesco (TSCO) 365.40p -2.25%Old Mutual (OML) 201.40p -1.90%Diageo (DGE) 1,986.00p -1.07%Aggreko (AGK) 1,765.00p -1.06%SABMiller (SAB) 3,442.50p -0.95%Hargreaves Lansdown (HL.) 970.00p -0.92%Intertek Group (ITRK) 3,388.00p -0.88%FTSE 250 - RisersKazakhmys (KAZ) 360.00p +5.79%Brown (N.) Group (BWNG) 443.50p +5.57%Smith (DS) (SMDS) 227.40p +5.42%Ferrexpo (FXPO) 175.90p +4.14%Lonmin (LMI) 271.80p +4.14%Centamin (DI) (CEY) 39.04p +3.94%Petropavlovsk (POG) 142.60p +3.78%Hochschild Mining (HOC) 250.20p +3.77%Chemring Group (CHG) 269.30p +3.50%Ocado Group (OCDO) 150.00p +3.45%FTSE 250 - FallersComputacenter (CCC) 468.40p -12.94%Kier Group (KIE) 1,199.00p -5.22%Man Group (EMG) 103.90p -3.89%Intu Properties (INTU) 334.00p -2.82%Greggs (GRG) 460.50p -2.23%Tullett Prebon (TLPR) 248.30p -2.17%Rathbone Brothers (RAT) 1,422.00p -2.00%National Express Group (NEX) 196.60p -1.95%Balfour Beatty (BBY) 249.70p -1.73%SDL (SDL) 379.90p -1.73%BC