LONDON (Alliance News) - UK shares are higher in mid-morning trade Thursday, rallying back from a lower close Wednesday despite weaker than expected Chinese industrial production and retail sales data for October.
In mid-morning trade, the FTSE 100 is up 0.4% at 6,635.22, trailing European bourses, while the FTSE 250 index is 0.4% higher at 15,664.48, and the AIM All-Share index is up 0.3% at 720.24.
Germany's DAX is up 0.8% while the CAC 40 in Paris is 0.7% higher.
Chinese industrial production growth for October came in at 7.7% year on year, below expectations of 8%, while the efforts of Chinese authorities to rebalance the economy toward consumers appear to be having little effect, after retail sales came in at 11.5% growth year on year, also below expectations of 11.6%. The data is likely to reinforce expectations that the Chinese central bank will keep policy conditions fairly loose for the near future.
SABMiller shares are up 1.8% after the brewer reported a rise in first-half revenue to USD11.37 billion, driven by sales in Africa and Latin America. Pretax profit rose to USD2.83 billion from USD2.43 billion and raised its dividend to 26 cents a share.
Wolseley shares are up 1.7% after Berenberg upgraded the stock to Buy and raised its price target for the stock to 3,900 pence, noting strength in the company's US business. Morgan Stanley also raised it price target on the stock to 3,700p and maintained its Hold rating.
The London Stock Exchange is 1.5% higher after reporting a rise in pretax profit to GBP136.8 million in the six months ended September 30, compared with GBP116.0 million last year. Revenue rose to GBP592.6 million from GBP504.2 million.
ITV shares are up 0.3%, with the broadcaster saying said it remains on track to deliver double-digit profit growth this year and GBP15 million in cost savings as it reported a rise in nine-month external revenue to GBP1.8 billion.
Rolls Royce is down 0.4% as the aero-engine maker said it expects to complete the sale of its energy gas turbines and compressor business to Germany's Siemens before the end of 2014, and plans to return the proceeds from the sale to shareholders through a GBP1 billion share buyback. It also reiterated that extra restructuring costs will reduce its expected underlying profit in both 2014 and 2015 by about GBP60 million.
BSkyB is down 1.4% after confirming plans to change its name to Sky following the completion of its acquisition of Sky Italia and an 89.71% stake in Sky Deutschland.
Rexam is down 6.7% after the drinks can maker warned of challenging markets and said a recent rise in aluminium prices could add about GBP30 million to its costs next year if they are sustained.
Electrocomponents is down 4.1% after posting a fall in pretax profit and revenue for the first half, hit by the strength of sterling, and said its chief executive is stepping down.
Brent crude is touching fresh four-year lows at USD80.35, hitting Royal Dutch Shell A and B shares, down 1.3% and 1.2% respectively. Tullow Oil is down 1.2% while airline operator IAG is up 1.1% and cruise operator Carnival is up 1.5%.
US trading is set for a higher open, with the DJIA and S&P 500 both called up 0.3%, and the Nasdaq Composite forecast 0.4% higher. Weekly US jobless claims data are due ahead of the open.
In Asia, the Japanese Nikkei closed up 1.1%, a new seven-year high, buoyed by a 2.9% rise in industrial production in September. The Hang Seng closed 0.3% higher and the Shanghai Composite was down 0.4%.
By Ian Edmondson; ianedmondson@alliancenews.com
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