London open: Stocks jump on euro hopes

7th Dec 2011 08:15

The FTSE 100 jumped higher from the off on reports that European leaders are drawing up a plan to increase the region's firepower against the crisis. The index jumped to 5,611 early on, an intraday level not seen in almost a month (intraday high of 5,616 hit on 9 November).The European Union is preparing a plan that would include the simultaneous running of two independent rescue funds along with larger financial support from the International Monetary Fund, according to a front page article published today in the Financial Times (FT). According to the newspaper, leaders are working on this three-pronged proposal in order "to create a much bigger financial 'bazooka' to present at this week's European Union summit." Official sources cited by the daily say that the proposal would allow the existing €440bn fund to continue running when a new €500bn fund comes into effect in mid-2012. In company movements on the FTSE 100, Wolseley was higher, extending gains after yesterday's well-received first-quarter results. There were only four fallers on the Footsie in the opening minutes. Mining peers Vedanta Resources, ENRC and Antofagasta were in demand, helped by rising metals prices.Drinks giant SABMiller nudged higher after announcing that its managing director of Asia, Ari Mervis, will now become the chief executive officer of the Foster's business, replacing the current chief exec just a week after completing the acquisition of the Australian lager brand.FTSE 250 STOCKS UP ON FIRST-HALF RESULTSOn the FTSE 250, investors toasted the first-half results from Micro Focus, DS Smith, KESA Electricals, AG Barr, Brewin Dolphin and Stagecoach, with the share prices of each firm on the rise.Micro Focus International, the business software company, was the high riser after announced a $134.4m cash return to shareholders. However, revenues on a constant currency basis dropped 2.6% in the six months to the end of October. Packaging and office products group DS Smith reported a 26% rise in revenues from continuing operations in the first half ended 31 October. Anglo-French firm KESA was higher despite seeing its first half results dragged down by Comet, the electrical retailer it has agreed to sell for just £2. Kesa posted a loss on its retail business of €9.2m, but a profit of €16.5m when Comet was stripped out.Scottish soft drinks maker AG Barr said current trading remains in line with company expectations and it is on track for the full year despite constrained consumer spending and fierce competition.Independent wealth manager Brewin Dolphin saw its funds under management rise 3.4% in the last year, driven by its discretionary investment arm.Bus and train operator Stagecoach rose despite reporting an 18% drop in half year pre-tax profit after a weak performance at its UK rail division.BCFTSE 100 - RisersResolution Ltd. (RSL) 264.90p +2.83%Wolseley (WOS) 2,017.00p +2.28%Burberry Group (BRBY) 1,291.00p +1.89%Barclays (BARC) 191.55p +1.89%Pearson (PSON) 1,163.00p +1.84%Hammerson (HMSO) 391.10p +1.69%Glencore International (GLEN) 416.90p +1.65%Vedanta Resources (VED) 1,103.00p +1.57%Eurasian Natural Resources Corp. (ENRC) 686.50p +1.55%Antofagasta (ANTO) 1,247.00p +1.55%FTSE 100 - FallersAssociated British Foods (ABF) 1,107.00p -0.81%ICAP (IAP) 363.70p -0.76%Investec (INVP) 362.50p -0.22%Standard Chartered (STAN) 1,453.50p -0.10%FTSE 250 - RisersMicro Focus International Plc (MCRO) 404.30p +5.98%DS Smith (SMDS) 208.00p +4.52%Dixons Retail (DXNS) 11.96p +4.00%Hays (HAS) 69.95p +3.25%Interserve (IRV) 329.90p +3.06%Capital & Counties Properties (CAPC) 180.90p +2.61%Charter International (CHTR) 952.00p +2.48%St James's Place (STJ) 344.90p +2.25%Carillion (CLLN) 313.20p +2.22%Afren (AFR) 88.40p +2.20%FTSE 250 - FallersHenderson Group (HGG) 111.80p -5.33%AZ Electronic Materials SA (WI) (AZEM) 242.90p -3.73%Talvivaara Mining Company (TALV) 239.60p -3.15%Berendsen (BRSN) 412.00p -2.37%Britvic (BVIC) 322.80p -2.12%Brown (N.) Group (BWNG) 260.60p -1.85%Debenhams (DEB) 62.10p -1.82%Kentz Corporation Ltd. (KENZ) 460.00p -1.60%Phoenix Group Holdings (DI) (PHNX) 555.00p -1.60%Big Yellow Group (BYG) 258.30p -1.34%