London stocks were still in the black by midday on Wednesday despite the release of uninspiring manufacturing data.
The FTSE 100 was up 0.6% at 7,162.12.
Russ Mould, investment director at AJ Bell, said: “Summer holidays are over; children are returning to school and we’re now only weeks away from the start of autumn. This shift in mindset also applies to investors as they sharpen their focus on market opportunities in the final section of the year.
“With the start of a new month comes a pick-up in equity markets across Europe. This positive momentum is welcome after a patchy summer.
“On the UK market, mining was the only sector to struggle after metal prices took a hit. Investors instead showed more interest in the oil and gas sector where commodities prices were stronger.”
Investors were mulling over the latest reading on the UK manufacturing sector, which showed that growth slowed to a five-month low in August amid supply chain issues. The IHS Markit/CIPS manufacturing purchasing managers’ index declined to 60.3 from 60.4 in July .
Nevertheless, it remained above the 50.0 mark that separates contraction from expansion and above the long-run average of 51.9.
The survey found that manufacturers continued to face rising constraints caused by supply chain issues. Shortages of inputs and delivery delays disrupted production schedules, leading to slower output growth, and also marked increases in input prices. Companies nonetheless still achieved solid gains in output, new orders and employment.
Also on home shores, a survey released earlier by Nationwide showed house prices rose 2.1% in August following a 0.6% decline in July. This was the second-largest jump in 15 years. On the year, house prices grew 11%, up from 10.5% in July.
Chinese data was also in focus. According to a private gauge released earlier, activity in the country’s manufacturing sector contracted in August for the first time since April 2020.
The Caixin manufacturing purchasing managers’ index fell to 49.2 from 50.3 in July, coming in below consensus expectations for a reading of 50.1. A reading above 50 signals expansion, while a reading below indicates contraction.
The country’s official manufacturing PMI, which was released on Tuesday, showed a drop to 50.1 in August from 50.4 in July.
In equity markets, 888 Holdings gained as the online betting group reported record interim profits and lifted annual guidance, driven by a spike in volumes during Covid lockdowns and the European football tournament.
Russian gold miner Petropavlovsk also rose after saying it swung to a first-half profit.
Building products manufacturer Tyman was the top gainer on the FTSE 250 after Berenberg upgraded its stance on the shares to ‘buy’ from ‘hold’ and hiked the price target to 500p from 375p, citing an attractive entry point.
On the downside, miners retreated as metals prices fell, with Antofagasta, Rio, BHP and Anglo American all lower.
WH Smith slumped after it lifted full-year guidance but warned that 2022 profits were expected to be at the lower end of expectations as the travel sector’s path of recovery from the Covid pandemic remained uncertain. The newsagent, which operates across airports, train stations and the high street, said group sales in the eight weeks to August 28 were 78% of 2019 levels before the pandemic struck. Total second half sales were at 65% of those from two years ago.
Market Movers
FTSE 100 (UKX) 7,162.12 0.60%
FTSE 250 (MCX) 24,227.00 0.52%
techMARK (TASX) 4,860.70 0.57%
FTSE 100 – Risers
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,826.00p 4.07%
Informa (INF) 551.60p 3.88%
JD Sports Fashion (JD.) 1,034.50p 2.48%
British Land Company (BLND) 543.20p 2.45%
Flutter Entertainment (CDI) (FLTR) 14,460.00p 2.44%
Land Securities Group (LAND) 726.20p 2.43%
Smith & Nephew (SN.) 1,425.00p 2.15%
Ocado Group (OCDO) 2,056.00p 2.14%
Entain (ENT) 1,971.00p 1.97%
Rightmove (RMV) 714.00p 1.80%
FTSE 100 – Fallers
Antofagasta (ANTO) 1,421.50p -2.37%
Prudential (PRU) 1,488.00p -1.78%
Rio Tinto (RIO) 5,297.00p -1.58%
Evraz (EVR) 581.60p -1.49%
BHP Group (BHP) 2,225.50p -1.42%
Johnson Matthey (JMAT) 2,901.00p -1.29%
Fresnillo (FRES) 843.80p -1.19%
Anglo American (AAL) 3,032.50p -1.19%
Royal Mail (RMG) 490.30p -1.03%
Weir Group (WEIR) 1,733.50p -1.03%
FTSE 250 – Risers
Tyman (TYMN) 448.00p 7.95%
IP Group (IPO) 133.00p 4.72%
Cineworld Group (CINE) 69.32p 4.56%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,826.00p 4.07%
Trainline (TRN) 377.80p 3.28%
888 Holdings (888) 420.00p 3.04%
Ninety One (N91) 263.60p 2.89%
Big Yellow Group (BYG) 1,569.00p 2.89%
Trustpilot Group (TRST) 444.00p 2.78%
Playtech (PTEC) 420.00p 2.74%
FTSE 250 – Fallers
WH Smith (SMWH) 1,554.00p -4.78%
Ferrexpo (FXPO) 371.80p -2.26%
Elementis (ELM) 150.50p -1.76%
Civitas Social Housing (CSH) 104.00p -1.52%
Chemring Group (CHG) 328.00p -1.35%
Investec (INVP) 301.80p -1.34%
Plus500 Ltd (DI) (PLUS) 1,476.00p -1.24%
Crest Nicholson Holdings (CRST) 414.80p -1.19%
Sequoia Economic Infrastructure Income Fund Limited (SEQI) 113.00p -1.05%
Auction Technology Group (ATG) 1,606.00p -0.99%
