London midday: Markets up but gains limited ahead of election

Stocks started the shortened trading week positively on Tuesday, taking their cue from gains in Europe and the US the previous day.After being closed on Monday for the bank holiday, the FTSE 100 was up 0.38% at 7,012.52 by midday, rising for the third straight session.However, falls from HSBC, miners and heightened political uncertainty in the UK election meant limited upside for London's stocks.That political uncertainty was being felt in the UK construction sector which slowed sharply in April, according to data from Markit and CIPS. The construction purchasing managers' index fell to a 22-month low of 54.2 from 57.8 in March, sending sterling lower in morning trade."Financial markets are very fickle, and without a clear answer to whom will be in Downing Street come Friday, dealers are giving sterling a wide berth," said IG analyst David Madden.Trade balance data and the ISM non-manufacturing PMI will also be due for release in the States on Tuesday afternoon.Mining stocks fall, banks mixedMiners were under the weather after Reserve Bank of Australia surprised with a 25 basis-point cut in interest rates to another record low of 2%. This was the second cut this year, sending shares in BHP Billiton and Rio Tinto lower.Spreadex analyst Connor Campbell said miners are "in somewhat of a slump this morning after the Australian central bank squashed interest rates to their lowest ever level in order to combat the country's post-mining boom headache".Glencore also declined after reporting a 9% drop in copper output in the first quarter, while Anglo American was pressured lower by a downgrade from RBC Capital Markets to 'underperform'.Lloyds and RBS were performing well after broker upgrades. Jefferies raised Lloyds to 'buy', saying that the earnings downgrade cycle has troughed for the bank, while Nomura lifted RBS to 'neutral' following the stock's recent underperformance.HSBC however underwhelmed with its first-quarter results despite profits coming in ahead of expectations. Reported pre-tax profit was up 4% year-on-year at $7.1bn and more than a fifth higher than City forecasts.Asset manager Aberdeen also disappointed with a 25% profit jump in the second quarter as it reported a £11.3bn outflow of net new business.Pub group Greene King rose after reporting a 0.4% increase in retail like-for-like sales and total sales growth of 6.3% for its just-completed full year. Market MoverstechMARK 3,211.32 +0.58%FTSE 100 7,012.52 +0.38%FTSE 250 17,568.20 +0.57%FTSE 100 - RisersTUI AG Reg Shs (DI) (TUI) 1,242.00p +3.50%Coca-Cola HBC AG (CDI) (CCH) 1,418.00p +3.05%Fresnillo (FRES) 730.50p +2.60%Burberry Group (BRBY) 1,764.00p +2.32%Smiths Group (SMIN) 1,160.00p +2.29%Dixons Carphone (DC.) 426.70p +2.06%ARM Holdings (ARM) 1,141.00p +2.06%Prudential (PRU) 1,644.50p +2.02%Sage Group (SGE) 497.70p +1.78%Intertek Group (ITRK) 2,670.00p +1.68%FTSE 100 - FallersAshtead Group (AHT) 1,121.00p -2.27%HSBC Holdings (HSBA) 632.80p -2.09%RSA Insurance Group (RSA) 418.00p -1.67%Aberdeen Asset Management (ADN) 456.00p -1.53%Shire Plc (SHP) 5,290.00p -1.21%Persimmon (PSN) 1,671.00p -1.18%Anglo American (AAL) 1,154.00p -0.94%Glencore (GLEN) 309.70p -0.94%Taylor Wimpey (TW.) 164.00p -0.91%Carnival (CCL) 2,982.00p -0.86%FTSE 250 - RisersLonmin (LMI) 150.50p +4.01%Just Eat (JE.) 471.70p +3.44%Close Brothers Group (CBG) 1,575.00p +3.28%Genus (GNS) 1,409.00p +3.22%Hunting (HTG) 598.00p +3.10%Rentokil Initial (RTO) 140.50p +2.93%IP Group (IPO) 210.80p +2.78%Indivior (INDV) 208.60p +2.71%AL Noor Hospitals Group (ANH) 890.50p +2.36%Enterprise Inns (ETI) 120.60p +2.29%FTSE 250 - FallersCOLT Group SA (COLT) 147.00p -2.00%Spire Healthcare Group (SPI) 320.20p -1.96%Hiscox Limited (CDI) (HSX) 811.50p -1.70%Fidelity China Special Situations (FCSS) 166.20p -1.66%NMC Health (NMC) 755.50p -1.50%Restaurant Group (RTN) 675.00p -1.46%Rathbone Brothers (RAT) 2,115.00p -1.35%Howden Joinery Group (HWDN) 464.20p -1.34%Imagination Technologies Group (IMG) 194.20p -1.22%Cranswick (CWK) 1,418.00p -1.18%