London open: FTSE rises as miners rally; Starmer to meet Streeting

(Sharecast News) - London stocks rose in early trade on Wednesday, helped by a strong showing from the mining sector, as US President Donald Trump headed to China for a summit with Xi Jinping, and as UK Prime Minister Starmer was due to hold a meeting with health secretary and leadership challenger Wes Streeting after a wave of ministerial resignations.

At 0838 BST, the FTSE 100 was up 0.8% at 10,347.67, while sterling was 0.1% lower against the dollar at 1.3532 following heavy losses a day earlier. Brent crude was down 1.3% at $106.34 a barrel.

On Tuesday, more than 90 MPs called for Starmer to step down, and four ministers handed in their resignation.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "UK government bonds had a bruising session yesterday, with no real let-up this morning, as borrowing costs pushed back to levels not seen since the financial crisis. The 10-year yield is just shy of 5.1%, while the 30-year yield is still above 5.7% in early trading, as a cocktail of political uncertainty, rising oil prices, and renewed inflation concerns has landed at once.

"The worry is that pressure on Prime Minister Keir Starmer could eventually lead to looser fiscal policy, while higher energy costs are feeding expectations that the Bank of England may have to raise interest rates this year. It's a tough mix: higher borrowing costs, weaker confidence and less room for the government to offer support if the economy slows."

Away from UK politics, the US and Iran remained locked in a stalemate, while Trump prepared to meet with Xi Jinping in China.

Richard Hunter, head of markets at Interactive Investor, said: "The imminent meeting between the US and China will undoubtedly focus on the conflict and any potential diplomacy which the Chinese may be able to offer given its relationship with Iran. Of equal importance could be discussions around the current tariff truce, although issues remain in place on rare earths."

In equity markets, Intertek surged as the inspection, product testing and certification group said it was minded to recommended a £9.4bn takeover by Swedish private equity firm EQT.

Heavily-weighted miners Antofagasta, Anglo American, Rio Tinto and Glencore were among the top gainers on the FTSE 100 as copper prices rose.

Babcock International also advanced as it posted a jump in annual revenues but confirmed profits had been hit by a one-off charge on a contract to build five ships for the Royal Navy.

Marshalls rose as it backed its full-year expectations while acknowledging the potential for volatility due to the Iran war.

On the downside, housebuilder Vistry tumbled after saying it expects first-half profits to be "significantly" lower than last year as it focused on cash generation and cutting debt, forecasting full-year adjusted pre-tax earnings to be in the middle of estimates.

Market Movers

FTSE 100 (UKX) 10,347.67 0.80%

FTSE 250 (MCX) 22,574.72 0.48%

techMARK (TASX) 5,909.29 0.24%

FTSE 100 - Risers

Intertek Group (ITRK) 5,670.00p 7.45%

Antofagasta (ANTO) 4,165.00p 4.96%

Fresnillo (FRES) 3,816.00p 4.75%

Anglo American (AAL) 4,059.00p 4.03%

Rio Tinto (RIO) 8,225.00p 3.89%

Glencore (GLEN) 588.40p 2.60%

Babcock International Group (BAB) 1,033.50p 2.23%

Standard Chartered (STAN) 1,874.00p 2.12%

Vodafone Group (VOD) 114.35p 2.10%

Prudential (PRU) 1,146.00p 2.04%

FTSE 100 - Fallers

Flutter Entertainment (DI) (FLTR) 7,052.00p -2.96%

Entain (ENT) 512.60p -2.16%

Relx plc (REL) 2,421.00p -1.22%

Spirax Group (SPX) 7,025.00p -1.19%

Imperial Brands (IMB) 2,798.00p -1.02%

Associated British Foods (ABF) 1,772.50p -0.98%

Autotrader Group (AUTO) 490.40p -0.87%

Informa (INF) 787.40p -0.81%

International Consolidated Airlines Group SA (CDI) (IAG) 393.20p -0.78%

The Sage Group (SGE) 872.20p -0.77%

FTSE 250 - Risers

SDCL Efficiency Income Trust (SEIT) 44.65p 5.18%

Hochschild Mining (HOC) 706.00p 4.84%

Ceres Power Holdings (CWR) 740.00p 4.44%

Endeavour Mining (EDV) 5,028.00p 4.33%

BlackRock World Mining Trust (BRWM) 1,038.00p 4.11%

Gamma Communications (GAMA) 926.50p 4.08%

W.A.G Payment Solutions (EWG) 108.20p 4.04%

Pets at Home Group (PETS) 175.40p 3.74%

AEP Plantations (AEP) 2,080.00p 3.74%

Allianz Technology Trust (ATT) 682.00p 2.56%

FTSE 250 - Fallers

Vistry Group (VTY) 292.80p -9.64%

Dr. Martens (DOCS) 60.00p -3.54%

Vesuvius (VSVS) 433.20p -2.43%

Diversified Energy Company (DI) (DEC) 1,140.00p -2.23%

Playtech (PTEC) 332.80p -1.54%

Caledonia Investments (CLDN) 365.50p -1.35%

B&M European Value Retail (BME) 161.70p -1.34%

Wizz Air Holdings (WIZZ) 971.50p -1.17%

Wickes Group (WIX) 177.00p -1.12%

easyJet (EZJ) 356.00p -1.03%