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London open: RBS and IAG lead gains as UK stocks rise on BoJ stimulus

Fri, 31st Oct 2014 08:34

London's stock market jumped in early deals on Friday, trading at levels not seen since the start of the month, after Japan's central bank unexpectedly ramped up its monetary-easing plan in a bid to revive growth.Sentiment was also helped by some well-received third-quarter results from heavyweights RBS, IAG and Direct Line.The FTSE 100 rose 0.9% to 6,519 within the opening hour after closing at 6,463.55 on Thursday, its highest finish since 8 October.Just days after the Federal Reserve called an end to its asset purchases, the Bank of Japan said it would be expanding its bond-buying programme to 80trn yen a year, up from the Y60trn-70trn level which has been in place since April 2013, amid downwards pressure on prices and falling consumer spending.The move saw Japanese stocks soar over 5% on Friday and the yen slump close to seven-year lows against the dollar.Analyst Angus Campbell from FxPro said the decision in Japan took "almost everyone by surprise, not because further measures were not expected, but because it was thought the BoJ wouldn't move quite so soon".Economic data will be in focus on Friday, with Eurozone inflation figures due out in the morning, followed by personal spending, and consumer-confidence indicators in the States later on.RBS, IAG and Direct Line provide a boostRoyal Bank of Scotland was making decent gains after saying it swung to a profit of nearly £1.3bn in the third quarter of 2014, compared with a loss of £634m the year before, and said it was making early progress in its strategy to create a "simpler, clearer and fairer" bank. The part-nationalised lender also confirmed that it would be keeping Irish arm Ulster Bank following a strategic review.Anglo-Spanish airline conglomerate International Consolidated Airlines Group was also in demand as it reported a 30% jump in third-quarter operating profits on the back of falling fuel costs and lifted its guidance for full-year growth. It now expects full-year adjusted operating profits to grow €550m-600m over last year, compared with an earlier target for €500m growth.Direct Line noted "highly competitive" markets but reassured investors by saying that pricing in the motor insurance market continuing to stabilise in the third quarter. The company said it remains on track to hit its full-year targets.Tougher comparatives led to a slowdown in organic growth at advertising and media giant WPP in the third quarter, though the company maintained its guidance for the full year. The stock was more or less flat early on.Fashion retailer SuperGroup was a heavy faller after lowering its profit guidance for the full year after recent warm weather kept a lid on sales. Market MoverstechMARK 2,767.73 +0.65%FTSE 100 6,519.37 +0.86%FTSE 250 15,443.81 +0.95%FTSE 100 - RisersInternational Consolidated Airlines Group SA (CDI) (IAG) 404.00p +3.40%Royal Bank of Scotland Group (RBS) 374.90p +2.63%Ashtead Group (AHT) 1,041.00p +2.16%Schroders (SDR) 2,380.00p +2.10%Friends Life Group Limited (FLG) 320.40p +2.10%London Stock Exchange Group (LSE) 2,010.00p +1.98%Intu Properties (INTU) 341.70p +1.91%St James's Place (STJ) 724.50p +1.68%Royal Mail (RMG) 442.60p +1.65%Unilever (ULVR) 2,514.00p +1.58%FTSE 100 - FallersRandgold Resources Ltd. (RRS) 3,718.00p -1.61%Fresnillo (FRES) 707.00p -1.33%BT Group (BT.A) 363.80p -1.11%WPP (WPP) 1,204.00p -0.33%Tesco (TSCO) 173.10p -0.12%RSA Insurance Group (RSA) 478.70p -0.10%Smith & Nephew (SN.) 1,053.00p -0.09%FTSE 250 - RisersJD Sports Fashion (JD.) 474.40p +5.42%Elementis (ELM) 268.00p +4.28%Henderson Group (HGG) 208.60p +4.25%Regus (RGU) 192.50p +4.22%Polymetal International (POLY) 527.00p +3.33%Card Factory (CARD) 233.00p +3.23%Zoopla Property Group (WI) (ZPLA) 211.50p +2.92%Berendsen (BRSN) 1,006.00p +2.81%Bank of Georgia Holdings (BGEO) 2,568.00p +2.64%AL Noor Hospitals Group (ANH) 1,048.00p +2.54%FTSE 250 - FallersSupergroup (SGP) 811.00p -8.36%Bwin.party Digital Entertainment (BPTY) 94.90p -4.96%Centamin (DI) (CEY) 53.40p -2.64%African Barrick Gold (ABG) 210.40p -1.73%Ted Baker (TED) 1,943.00p -0.61%Serco Group (SRP) 294.10p -0.57%Workspace Group (WKP) 635.50p -0.47%Playtech (PTEC) 701.00p -0.43%Premier Oil (PMO) 258.10p -0.39%Provident Financial (PFG) 2,115.00p -0.38%

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