London open: Markets open cautiously ahead of Easter weekend

28th Mar 2013 08:21

UK stocks opened tentatively on Thursday morning with the focus once again turns to Cyprus as banks re-open with capital controls in place to prevent worried depositors from clearing out their accounts.While markets have opened in a positive manner, gains are expected to moderate as traders refrain from building positions ahead of a long four-day weekend for the Easter holidays.Supporting stocks this morning were comments yesterday from a number of doves at the US Federal Reserve who reiterated their support for the central bank's current easy money policy. Chicago Fed President Charles Evens in particular called for patience to "let our policies work" before the Fed considers scaling back stimulus measures.In domestic news this morning, GfK's consumer confidence gauge for British consumers was flat at -26 in March, slightly ahead of the consensus estimate of -27. Meanwhile, UK house prices rose by 0.8% year-on-year in February, according to Nationwide, under the 0.9% increase expected.There will also be a barrage of economic data out in the States to keep investors busy, including: economic growth estimates for fourth quarter; personal consumption; jobless claims; and the Chicago purchasing managers' index.Cyprus reopens banksBanks in Cyprus were dominating the headlines this morning as their doors opened for the first time in nearly two weeks following a €10bn bailout deal with the Troika that included controversial levies on large uninsured deposits.While deposits under €100,000 will be safe, the government has imposed strict capital control measures to limit financial transactions and capital outflows in an attempt to prevent a run on the banks."Cypriots are expected to descend in their thousands as savers panic and scramble to get their cash," said Financial Sales Trader Lee Mumford from Spreadex.FTSE 100: Johnson Matthey jumps after Formox purchaseChemicals firm Johnson Matthey was a high riser this morning after completing the £107m acquisition of Swedish formaldehyde producer Formox, expanding its position "as a leading supplier of technology for a range of syngas and other chemical processes," the company said.Also on the up was Tate & Lyle after the food ingredients and sweetener producer said it had performed strongly in the fourth quarter.National Grid also gained after saying that earnings for the full year will be modestly ahead of previous guidance. The company also unveiled a new dividend policy that aims to grow payout at least in line with the rate of RPI inflation each year.IHG rose after selling its Park Lane hotel to Constellation Hotel UK for £302m, 62% above the net book value at the end of December.FTSE 250: RPC drops on gloomy guidancePlastic packaging firm RPC Group tanked early on after saying that FX changes and challenging economic conditions will lead to lower sales and profits this year, while limited growth is expected in the future.Engineering materials group Alent fell after its first annual results since demerging from Cookson Group last year, which showed a 2.2% rise in profits but a 3.8% drop in net sales value.QinetiQ, the defence firm, slumped despite saying it remains on course to hit full-year targets. The company noted a robust UK services performance but said that challenging conditions in the US have persisted.FTSE 100 - RisersJohnson Matthey (JMAT) 2,355.00p +4.67%Tate & Lyle (TATE) 839.00p +1.70%National Grid (NG.) 761.50p +1.40%InterContinental Hotels Group (IHG) 1,977.00p +1.28%Shire Plc (SHP) 1,998.00p +1.16%BT Group (BT.A) 277.10p +0.95%BAE Systems (BA.) 387.40p +0.94%Evraz (EVR) 221.50p +0.73%Morrison (Wm) Supermarkets (MRW) 275.80p +0.73%Smith & Nephew (SN.) 764.00p +0.73%FTSE 100 - FallersEurasian Natural Resources Corp. (ENRC) 249.90p -3.03%Antofagasta (ANTO) 997.50p -2.68%Reckitt Benckiser Group (RB.) 4,670.00p -2.20%Vedanta Resources (VED) 1,011.00p -1.94%Fresnillo (FRES) 1,359.00p -1.24%Rexam (REX) 521.50p -1.14%BHP Billiton (BLT) 1,919.50p -1.13%Xstrata (XTA) 1,067.00p -0.88%ITV (ITV) 127.50p -0.86%Randgold Resources Ltd. (RRS) 5,625.00p -0.79%FTSE 250 - RisersPetropavlovsk (POG) 229.90p +4.50%Barr (A.G.) (BAG) 562.50p +2.46%BH Global Ltd. USD Shares (BHGU) 12.04 +2.03%United Drug (UDG) 276.70p +1.92%Supergroup (SGP) 610.00p +1.75%Dexion Absolute Ltd. GBP Shares (DAB) 145.90p +1.74%Thomas Cook Group (TCG) 116.00p +1.58%Debenhams (DEB) 82.85p +1.53%Bellway (BWY) 1,259.00p +1.53%Persimmon (PSN) 1,054.00p +1.44%FTSE 250 - FallersRPC Group (RPC) 402.00p -10.86%St. Modwen Properties (SMP) 252.30p -3.26%QinetiQ Group (QQ.) 199.50p -3.16%Kazakhmys (KAZ) 391.40p -2.44%Centamin (DI) (CEY) 52.50p -2.14%IP Group (IPO) 143.40p -2.12%Ferrexpo (FXPO) 169.30p -2.08%Alent (ALNT) 355.20p -1.96%Hochschild Mining (HOC) 280.20p -1.79%ICAP (IAP) 297.20p -1.69%BC