London open: Markets open higher as surge continues

20th May 2013 08:40

London's benchmark index was trading at levels not seen in over a decade on Monday morning, boosted by record closing prices in the States on Friday on the back of an improved outlook for the global economy.The FTSE 100 surpassed its 2007 high of 6,732 in intraday trade this morning as it continues its recent surge. The next major milestone for the index is the all-time closing high of 6,930.2 reached on December 30th 1999. On that same day the benchmark reached an intraday high at 6,950.60.Wall Street's Dow Jones and S&P 500 indices both closed at record highs on Friday (along with Germany's DAX) after University of Michigan consumer confidence data and an index of leading indicators came in ahead of forecasts.Recent strong economic data from the States has increased speculation that the recovery may be on a firm enough footing for the Federal Reserve to begin scaling back its stimulus measures."If equity investors are concerned about the start of a possible Fed tapering programme they don't seem to be showing it if recent equity market performance is anything to go by," said Senior Market Analyst Michael Hewson from CMC Markets.Volumes are expected to be light today due to the Whit Monday holiday in Germany and France even if both markets are open for business. Markets in Austria, Denmark, Luxembourg, Norway and Switzerland however will be closed.FTSE 100: easyJet jumps after broker commentsBudget airline easyJet was flying high this morning after Deutsche Bank and Citigroup both upped their target prices for the stock and reiterated 'buy' ratings. Citigroup raised its earnings forecasts for the group by around 10% for this year and the next and said that stronger free cash flow could support potential additional shareholder returns.RBS was another strong performer as speculation continues surrounding a potential reprivatisation next year. Last week, the company made the headlines on the back of plans to cut a further 1,400 jobs from its retail banking head office in an effort to slash costs.ENRC, the Kazakhstan-focused miner which on Friday rebuffed a takeover proposal by its founding shareholders, was extending losses after confirming that the proposal envisaged an offer of 260p per share, which "materially undervalues" the firm.Fellow miner Randgold was also lower after entering into a $200m unsecured revolving credit facility with its banks. The money will be used for general corporate purposes, the group said.Reckitt Benckiser, the consumer-products giant, gained after completing its three-year collaboration agreement with Bristol-Myers Squibb Company having received the necessary approvals.FTSE 250: FirstGroup reverses as dividend scrappedTransport firm FirstGroup dropped early on after cancelling its final dividend as it restructured its balance sheet and refinanced after a year in which operating profits halved. In results announced two days earlier than scheduled, Martin Gilbert announced his resignation as Chairman, 27 years after he first oversaw its initial start-up phase. Bacon and sausage supplier Cranswick rose after reporting a robust set of annual results as pork consumption in the UK continues to grow.Events organiser ITE was also in demand after saying that revenues grew slightly in the first half despite the adverse timing of some events and the biennial pattern.FTSE 100 - RiserseasyJet (EZJ) 1,240.00p +4.38%Royal Bank of Scotland Group (RBS) 349.00p +3.62%United Utilities Group (UU.) 778.00p +1.70%GKN (GKN) 310.60p +1.57%Associated British Foods (ABF) 1,914.00p +1.48%Petrofac Ltd. (PFC) 1,342.00p +1.28%Land Securities Group (LAND) 1,001.00p +1.11%National Grid (NG.) 837.50p +1.09%William Hill (WMH) 449.70p +1.06%BT Group (BT.A) 317.30p +1.05%FTSE 100 - FallersFresnillo (FRES) 1,047.00p -2.06%Eurasian Natural Resources Corp. (ENRC) 266.30p -1.95%Marks & Spencer Group (MKS) 442.60p -1.86%Intertek Group (ITRK) 3,326.00p -1.74%Polymetal International (POLY) 622.50p -1.74%Next (NXT) 4,626.00p -1.43%Randgold Resources Ltd. (RRS) 4,689.00p -1.43%Aberdeen Asset Management (ADN) 464.40p -1.19%Standard Chartered (STAN) 1,609.00p -0.86%Aggreko (AGK) 1,733.00p -0.80%FTSE 250 - RisersKazakhmys (KAZ) 348.80p +3.07%Enterprise Inns (ETI) 120.00p +2.83%Heritage Oil (HOIL) 151.90p +2.77%ITE Group (ITE) 300.90p +2.35%Drax Group (DRX) 592.00p +2.33%Pennon Group (PNN) 712.50p +1.86%Daejan Holdings (DJAN) 4,022.00p +1.80%Alent (ALNT) 347.00p +1.79%Cranswick (CWK) 1,105.00p +1.66%Inmarsat (ISAT) 673.00p +1.66%FTSE 250 - FallersFirstGroup (FGP) 184.60p -17.52%Petropavlovsk (POG) 126.20p -2.77%BTG (BTG) 347.00p -2.69%Ocado Group (OCDO) 267.00p -2.59%Moneysupermarket.com Group (MONY) 215.70p -2.40%Thomas Cook Group (TCG) 155.20p -2.08%Menzies(John) (MNZS) 749.00p -1.71%Lonmin (LMI) 269.40p -1.71%Mitie Group (MTO) 269.00p -1.61%Hochschild Mining (HOC) 252.60p -1.48%BC