London open: UK stocks near record highs as housebuilders rise

10th Apr 2015 08:33

UK stocks were on track to hit a new record on Friday, helped by strong gains in the housebuilding sector.London's FTSE 100 was up 0.46% at 7,047.39 shortly after the open. The index's previous closing high of 7,037.67 was set on 23 March, while the intraday record of 7,065.08 was set on 24 March.Friday's session will see the release of a number of domestic economic indicators, such as UK industrial and manufacturing production, both of which are predicted to show a slight slowdown in growth in February. The NIESR also gives its latest estimate for UK gross domestic product.Overnight, data showed that the annual rate of Chinese inflation remained steady at 1.4% in March, surprising analysts who expected a slowdown to 1.3%.Nevertheless, despite the People's Bank of China's (PBOC) recent measures - cutting interest rates and the reserve requirement ratio - deflation remains a real risk given that producer prices slumped by 4.6%. These could "act as a drag on prices paid by the consumer further down the road", said Oanda analyst Craig Erlam."I think more rate cuts are inevitable from the PBOC given how far below target inflation is, the only question is how long they'll wait," he said.Housebuilders rise after upgradeHousebuilders were among the best performers early on as Jefferies upgraded ratings for stocks across the sector, including Barratt Developments, Taylor Wimpey, Persimmon, Bellway, Crest Nicholson and Redrow. Jefferies said it has turned more positive on the sector after recent data "point[ed] to a stronger pre-election housing market than we had anticipated".In contrast, mining stocks were trading with losses, such as Anglo American, Rio Tinto and Glencore. Rio Tinto was in focus on reports that its Canadian iron ore division will cut 150 jobs.UK wine merchant Majestic Wine fell as investors reacted to the announcement that it will buy Naked Wines, a customer funded international online wine business for up to £70m in a reverse takeover. As part of the deal, Naked's founder and chief executive Rowan Gormley will become boss of the enlarged group.Recruiter Hays underwhelmed despite saying it now expects to deliver strong operating profit growth for the full year after a decent third quarter. Annual growth in net fees, however, eased to 5% from 6% in the first half.Shares in Reckitt Benckiser rose after receiving a boost by analysts at UBS who upgraded their rating on the stock to 'buy' from 'hold'. The bank said Reckitt is "one of the two core holdings in the European household and personal care space".Market MoverstechMARK 3,258.90 +0.75%FTSE 100 7,047.39 +0.46%FTSE 250 17,804.64 +0.50%FTSE 100 - RisersShire Plc (SHP) 5,660.00p +4.43%ITV (ITV) 267.60p +2.41%Barratt Developments (BDEV) 554.00p +2.40%Taylor Wimpey (TW.) 164.20p +1.86%Aggreko (AGK) 1,568.00p +1.62%Aberdeen Asset Management (ADN) 492.80p +1.61%Dixons Carphone (DC.) 433.00p +1.60%Persimmon (PSN) 1,755.00p +1.27%Rolls-Royce Holdings (RR.) 962.00p +1.26%Burberry Group (BRBY) 1,813.00p +1.17%FTSE 100 - FallersAnglo American (AAL) 1,014.00p -0.98%Royal Mail (RMG) 446.40p -0.89%Rio Tinto (RIO) 2,832.00p -0.72%Kingfisher (KGF) 364.50p -0.71%Associated British Foods (ABF) 2,994.00p -0.66%Glencore (GLEN) 286.95p -0.66%Pearson (PSON) 1,459.00p -0.48%Weir Group (WEIR) 1,759.00p -0.45%Travis Perkins (TPK) 1,997.00p -0.35%Lloyds Banking Group (LLOY) 79.45p -0.29%FTSE 250 - RisersIndivior (INDV) 211.80p +5.64%Bellway (BWY) 2,075.00p +2.98%Crest Nicholson Holdings (CRST) 450.80p +2.71%Zoopla Property Group (WI) (ZPLA) 203.00p +2.53%Spectris (SXS) 2,317.00p +2.52%Countrywide (CWD) 533.00p +2.40%Redrow (RDW) 381.50p +2.36%Renishaw (RSW) 2,533.00p +2.34%AO World (AO.) 189.30p +2.32%Rotork (ROR) 2,639.00p +2.29%FTSE 250 - FallersHays (HAS) 157.00p -4.15%Saga (SAGA) 181.70p -2.63%Imagination Technologies Group (IMG) 196.40p -2.29%Hunting (HTG) 542.50p -1.36%Card Factory (CARD) 310.00p -1.34%TR Property Inv Trust (TRY) 317.90p -1.18%Nostrum Oil & Gas (NOG) 610.50p -1.13%Kaz Minerals (KAZ) 213.90p -1.06%Michael Page International (MPI) 549.00p -0.90%Workspace Group (WKP) 872.50p -0.80%