(Sharecast News) - London stocks edged higher in in early trade on Monday following a positive Asian session, kicking off the shortened trading week in a fairly quiet fashion.
At 0900 BST, the FTSE 100 was up 0.3% at 7,607.24, with markets set to close on Thursday and Friday for the Platinum Jubilee bank holiday.
Richard Hunter, head of markets at Interactive Investor, said: "The relief rally has taken to the global stage as investors mull the possibility of an economic return to form.
"In the US, the Federal reserve's preferred inflation measure, the PCE, showed a rise of 0.2%, which was the smallest gain since November 2020. The reaction of bond yields subsequently suggested that inflation could be near or even at its peak, which would remove a major thorn in the side for investors.
"At the same time, data showing an increase in consumer spending in April suggested that there is still life in a measure which accounts for almost 70% of US economic activity. Coupled with the potential inflation plateau, this could mean that stagflation can be avoided even though the Fed has not yet come to the end of its tightening cycle.
"Asian markets added to the positive momentum as China began to ease lockdown restrictions in both Beijing and Shanghai. The Premier has announced that there will be a range of measures aimed at boosting a beleaguered economy, with more detail to follow shortly. However, the damage has largely been done over the last few months, with an inevitable drop in consumer sentiment tied to a soaring unemployment rate, and with many economists predicting a contraction in the current quarter.
"Even so, a perceived improvement to the fractious US/China relationship has also improved sentiment, particularly given the limitations which global economies have had to endure this year."
In equity markets, Countryside Partnerships surged to the top of the FTSE 250 after San Francisco-based Inclusive Capital said it was looking to make a £1.47bn bid, but accused the company of refusing to engage with it. In-Cap, which holds a 9.2% stake in Countryside, said the possible offer was to buy the remaining shares in the house builder it does not already own for 295 pence each.
Elsewhere, IMI gained as the specialist engineer said it planned to buy Germany's Bahr Modultechnik Holding GmbH for an enterprise value of €98m (£83m).
Market Movers
FTSE 100 (UKX) 7,607.24 0.29%
FTSE 250 (MCX) 20,601.85 1.13%
techMARK (TASX) 4,458.49 0.29%
FTSE 100 - Risers
JD Sports Fashion (JD.) 125.95p 5.00%
International Consolidated Airlines Group SA (CDI) (IAG) 135.24p 3.65%
Scottish Mortgage Inv Trust (SMT) 821.00p 3.30%
Ocado Group (OCDO) 926.20p 2.75%
Melrose Industries (MRO) 132.50p 2.71%
Auto Trader Group (AUTO) 592.20p 2.67%
Burberry Group (BRBY) 1,708.00p 2.24%
Royal Mail (RMG) 328.10p 2.21%
Entain (ENT) 1,464.00p 2.16%
Rightmove (RMV) 608.60p 2.15%
FTSE 100 - Fallers
Airtel Africa (AAF) 156.60p -2.06%
DCC (CDI) (DCC) 5,520.00p -1.71%
Vodafone Group (VOD) 128.82p -1.01%
AstraZeneca (AZN) 10,474.00p -1.00%
Admiral Group (ADM) 2,221.00p -0.76%
Imperial Brands (IMB) 1,784.00p -0.72%
BT Group (BT.A) 183.15p -0.60%
British American Tobacco (BATS) 3,530.00p -0.58%
Glencore (GLEN) 523.60p -0.49%
Reckitt Benckiser Group (RKT) 6,088.00p -0.49%
FTSE 250 - Risers
Countryside Partnerships (CSP) 295.80p 23.97%
Watches of Switzerland Group (WOSG) 1,000.00p 5.43%
Baillie Gifford US Growth Trust (USA) 174.40p 4.68%
Carnival (CCL) 1,030.00p 4.42%
Aston Martin Lagonda Global Holdings (AML) 711.80p 4.19%
Moonpig Group (MOON) 265.20p 3.67%
TUI AG Reg Shs (DI) (TUI) 194.35p 3.43%
AJ Bell (AJB) 279.80p 3.25%
Henderson Smaller Companies Inv Trust (HSL) 943.00p 3.17%
Currys (CURY) 88.85p 3.13%
FTSE 250 - Fallers
Hochschild Mining (HOC) 112.60p -2.34%
Petrofac Ltd. (PFC) 145.00p -1.89%
Auction Technology Group (ATG) 1,044.00p -1.69%
Wood Group (John) (WG.) 247.00p -1.32%
IG Group Holdings (IGG) 716.00p -1.24%
Ultra Electronics Holdings (ULE) 3,330.00p -1.13%
Fidelity Special Values (FSV) 278.00p -0.89%
QinetiQ Group (QQ.) 366.00p -0.81%
Vietnam Enterprise Investments (DI) (VEIL) 697.00p -0.71%
Just Group (JUST) 82.50p -0.66%