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London midday: ECB stimulus hopes lift stocks, but earnings reports mixed

Tue, 21st Oct 2014 11:38

Decent gains in the financial, energy and retail sectors helped the FTSE 100 rise strongly on Tuesday, despite some mixed blue-chip earnings and economic data from China.Also helping sentiment were reports that the European Central Bank is considering buying corporate bonds on the secondary market.A decision on the move, according to sources cited by Reuters, may be made by the end of the year and is thought to be an attempt to boost lending to businesses across the Eurozone.Hargreaves Lansdown, Old Mutual, RBS and Lloyds were among the top performers in London, while energy peers Tullow Oil, Shell, BP and BG Group were on the rise as crude prices rose for the third time in four sessions.The FTSE 100 index was trading 0.8% higher at 6,315 by midday.Markets were digesting an influx of economic data from China where gross domestic product (GDP) growth slowed down in the most recent quarter. The annual growth of Chinese GDP was 7.3% in the third quarter, down from 7.5% in the second quarter.While this was just ahead of the 7.2% expansion expected by the market, analysts at Deutsche Bank pointed out that this was "still the lowest read seen since early 2009".Meanwhile, Chinese industrial production growth picked up more than expected to 8% in September from 6.9% in August, but the increase in retail sales and fixed-asset investment eased more than predicted to 11.6% and 16.1% respectively.Corporate earnings mixedMicroprocessor group ARM Holdings erased earlier losses to sink into the red after third-quarter revenues came up short of the consensus forecast, though the group said it still remains on track to hit full-year forecasts.Aerospace and automotive engineer GKN was in demand after delivering higher third-quarter profit. However, the group also predicted lower growth for the rest of the year, particularly in automotive markets, and said the strong pound would hit results.Reckitt Benckiser declined after the consumer-goods giant missed analysts' estimates slightly in its third quarter on the back of continuing currency headwinds and "tougher markets".Continuing strong momentum in the US market helped Holiday Inn and Crowne Plaza owner Intercontinental Hotels Group deliver a pick-up in revenue per available room growth in the third quarter, but the stock was subdued in morning trade.Whitbread was out of favour after the leisure group, which owns the Costa and Premier Inn chains, underwhelmed with its seemingly impressive half-year results but flagged tough comparatives in the second half.High street bookmaker William Hill gained after saying its bottom line should come in at the top-end of analysts' forecasts this year after third-quarter profit growth of 89%, boosted by favourable sporting results and good growth overseas. Sector peer Ladbrokes was also higher.Annual profits at Asos were not quite as bad as feared as the online fasihon retailer put a troublesome year to bed, although significant investment in international pricing is likely to hold profits back for the next two years. The AIM-listed stock surged by nearly a fifth.The chairman of UKFI reportedly said in a hearing before the Treasury Select Committee he is closer to selling the stake in RBS. Market MoverstechMARK 2,621.39 +0.36%FTSE 100 6,314.57 +0.76%FTSE 250 14,949.46 +1.31%FTSE 100 - RisersTUI Travel (TT.) 360.50p +3.24%Sports Direct International (SPD) 619.50p +2.91%Old Mutual (OML) 177.50p +2.78%Hargreaves Lansdown (HL.) 937.50p +2.74%Ashtead Group (AHT) 961.50p +2.67%Petrofac Ltd. (PFC) 1,057.00p +2.62%CRH (CRH) 1,337.00p +2.61%Royal Bank of Scotland Group (RBS) 361.00p +2.59%Tullow Oil (TLW) 521.00p +2.46%Marks & Spencer Group (MKS) 417.00p +2.41%FTSE 100 - FallersARM Holdings (ARM) 803.50p -5.64%Whitbread (WTB) 4,153.00p -1.77%Reckitt Benckiser Group (RB.) 5,030.00p -1.66%Imperial Tobacco Group (IMT) 2,506.00p -1.61%Rolls-Royce Holdings (RR.) 805.50p -1.53%United Utilities Group (UU.) 817.00p -0.91%British American Tobacco (BATS) 3,405.00p -0.90%GlaxoSmithKline (GSK) 1,328.50p -0.78%InterContinental Hotels Group (IHG) 2,239.00p -0.44%National Grid (NG.) 870.00p -0.29%FTSE 250 - RisersThomas Cook Group (TCG) 116.00p +5.36%Informa (INF) 470.10p +5.03%Halfords Group (HFD) 464.90p +4.94%WH Smith (SMWH) 1,109.00p +4.82%Fisher (James) & Sons (FSJ) 1,209.00p +4.58%Home Retail Group (HOME) 173.30p +4.52%Debenhams (DEB) 61.35p +4.43%Enterprise Inns (ETI) 120.70p +4.41%Oxford Instruments (OXIG) 1,068.00p +4.40%Ophir Energy (OPHR) 198.30p +4.37%FTSE 250 - FallersKazakhmys (KAZ) 245.60p -2.54%Supergroup (SGP) 1,024.00p -1.44%Redefine International (RDI) 50.25p -1.37%Stock Spirits Group (STCK) 305.20p -0.88%Ferrexpo (FXPO) 90.85p -0.66%SSP Group (SSPG) 228.50p -0.65%Electra Private Equity (ELTA) 2,380.00p -0.63%JPMorgan Emerging Markets Inv Trust (JMG) 564.50p -0.62%Fidessa Group (FDSA) 2,207.00p -0.59%Hellermanntyton Group (HTY) 289.30p -0.58%
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