London open: Stocks rise ahead of BoE inflation report

13th May 2015 08:20

London stocks rebounded slightly on Wednesday after a steep decline the previous session, as investors geared up for the Bank of England's Quarterly Inflation Report.The FTSE 100 was trading 0.53% higher at 6,970.37 early on, with results from blue chips Mondi, Barratt Developments and SABMiller impressing the market.The index slumped 1.4% on Tuesday as volatility in government bond markets and concerns about Greece hit sentiment."The FTSE began to try and recover some of its post-election gains this Wednesday after they were completely wiped out in Tuesday's sell-off," said Spreadex analyst Connor Campbell.The market's focus on Wednesday is likely to be on the first inflation report of the new government due at 10:30 BST, with investors awaiting the BoE's inflation and growth forecasts for the UK economy.Analysts at Danske Bank said the central bank "may revise down the growth forecast a bit, while revising inflation slightly up following the recent rise in the oil price".The Eurozone's gross domestic product estimate for the first quarter at 10:00 is expected to show the region expanded by 1% year-on-year after the previous quarter's 0.9% gain. Meanwhile, US retail sales at 13:30 are estimated to show a 0.2% climb in April.Overnight, a host of economic indicators from China disappointed, with growth in fixed asset investment, industrial production and retail sales all coming in weaker than expected. Analysts said the data raises hopes for further easing measures from the People's Bank of China after last week's interest-rate cut.Mondi, Barratt and SABMiller impressPaper and packaging giant Mondi said profits rose 29% in the first quarter on the back of higher volumes and lower costs across Europe, causing shares to surge over 9% on Wednesday.Housebuilder Barratt Developments was trading higher as it raised expectations for housing completions and profits for the full year. The company said the improved outlook was thanks to strong consumer demand for new build houses and expectations of a supportive government policy post-election.Full-year profits from brewer SABMiller were higher than market expectations as China returned to growth during the last three months of the year. Adjusted profits were down a less-than-expected 1%.Catering company Compass Group was in the red despite saying its full-year guidance remains "positive and unchanged" as it reported an increase in first-half earnings.Admiral also weaker on the news that chief executive of the motor insurer, Henry Engelhardt, is stepping down in a year's time.Market MoverstechMARK 3,241.76 +0.60%FTSE 100 6,970.37 +0.53%FTSE 250 17,808.77 +0.68%FTSE 100 - RisersMondi (MNDI) 1,416.00p +9.09%Barratt Developments (BDEV) 565.00p +3.57%Persimmon (PSN) 1,786.00p +2.17%Ashtead Group (AHT) 1,163.00p +2.11%Marks & Spencer Group (MKS) 571.50p +1.96%SABMiller (SAB) 3,564.50p +1.77%TUI AG Reg Shs (DI) (TUI) 1,275.00p +1.76%Dixons Carphone (DC.) 457.60p +1.55%Hammerson (HMSO) 673.50p +1.51%3i Group (III) 513.50p +1.48%FTSE 100 - FallersCompass Group (CPG) 1,134.00p -2.49%Admiral Group (ADM) 1,454.00p -1.42%Sainsbury (J) (SBRY) 276.00p -1.08%St James's Place (STJ) 917.00p -1.03%HSBC Holdings (HSBA) 614.50p -0.89%Coca-Cola HBC AG (CDI) (CCH) 1,396.00p -0.14%Glencore (GLEN) 301.65p -0.12%Experian (EXPN) 1,213.00p -0.08%National Grid (NG.) 890.00p -0.07%FTSE 250 - RisersCountrywide (CWD) 578.00p +4.14%Ted Baker (TED) 2,835.00p +3.92%Amec Foster Wheeler (AMFW) 902.50p +3.20%Renishaw (RSW) 2,587.00p +3.07%Hunting (HTG) 610.00p +3.04%Centamin (DI) (CEY) 64.30p +2.96%Premier Oil (PMO) 185.60p +2.83%Indivior (INDV) 231.50p +2.75%Smith (DS) (SMDS) 359.90p +2.51%Wood Group (John) (WG.) 717.00p +2.43%FTSE 250 - FallersEnterprise Inns (ETI) 133.30p -1.99%Saga (SAGA) 195.40p -1.81%Rank Group (RNK) 200.00p -1.57%Computacenter (CCC) 724.50p -1.56%PayPoint (PAY) 863.00p -1.54%Jardine Lloyd Thompson Group (JLT) 1,028.00p -1.34%Barr (A.G.) (BAG) 622.00p -1.19%COLT Group SA (COLT) 148.50p -1.13%Nostrum Oil & Gas (NOG) 591.50p -1.00%JPMorgan American Inv Trust (JAM) 273.60p -0.94%