London open: Tesco leads stock surge ahead of economic data, BoE decision

Big gains from Tesco and a strong finish on Wall Street helped drive UK markets higher on Thursday morning, as investors awaited a flurry of economic data and a policy decision by the Bank of England (BoE).Heavyweight grocer Tesco was leading the risers early on after investors applauded the supermarket's turnaround plans and an improvement in trading over the key Christmas period.London's FTSE 100 was trading 1.3% higher at 6,502.US stocks snapped a five-day losing streak on Wednesday, with the S&P 500 registering its first gain of the year, following a calmer session for currency and commodity markets.Crude prices gained - Brent recovered after briefly dipping below the $50-a-barrel mark - after data showed that US stockpiles unexpectedly shrank last week. Prices were more or less flat on Thursday morning.Meanwhile, markets gave a largely neutral reaction to the minutes from the last Federal Open Market Committee meeting, which showed that officials would be patient over the first increase in interest rates. The details of the discussions at that last meeting suggested that the first hike would not come before April.As for Thursday's session, investors will be focused on economic confidence data and retail sales figures in the Eurozone, a BoE rate decision and further labour-market figures in the States.US jobless claims will be closely watched ahead of the all-important US jobs report on Friday, which is expected to reveal that non-farm payrolls increased by 240,000 in December, compared with 321,000 in November. The unemployment rate is forecast to fall to 5.7% from 5.8%.The BoE, which is due to make an announcement at midday, is widely expected to keep interest rates and the size of its asset purchase programme on hold. Analyst James Hughes from Alpari UK said that with inflation still currently subdued, "there is no real need to push ahead with a change in monetary policy and we may not see a rate hike now in the UK until 2016".Tesco jumps as turnaround plan unveiledTesco's shares surged nearly 6% after it said it would cut costs substantially next year, close 43 unprofitable stores and lower prices, as chief executive Dave Lewis attempts to turn around the struggling supermarket chain. The news came as the company unveiled a "broad-based improvement" in UK trading with the like-for-like (LFL) sales decline easing to just 0.3% over Christmas.Rival chains J Sainsbury and Wm Morrison were also putting in a decent performance on the stock market early on.However, news that Tesco had poached Halfords chief executive Matt Davies sent shares in the bicycling and car parts retailer skidding downwards. Since Davies was appointed in 2012 amid a hopeful fanfare about his turnaround mission, shares in the company had more than doubled thanks to his efforts to improve the ailing business.Retailer Marks & Spencer was heading lower after sales of general merchandise and womenswear over the Christmas period were significantly worse than had been expected, falling 5.8% on a LFL basis.Building materials group CRH gained after saying its multiyear €1.5bn-2bn divestment programme announced last August was "well underway" after it sold off 16 assets in 2014. The company said it is "now well-positioned to pursue acquisitions which are in line with our long-term growth strategy".Broadcaster ITV was in demand with some City folk joking that it might not be a coincidence that unloved football co-commentator Andy Townsend had been given the boot.Market MoverstechMARK 2,972.07 +1.17%FTSE 100 6,502.27 +1.28%FTSE 250 16,001.26 +0.94%FTSE 100 - RisersTesco (TSCO) 192.10p +5.55%Sainsbury (J) (SBRY) 237.10p +3.27%Travis Perkins (TPK) 1,830.00p +3.04%Compass Group (CPG) 1,087.00p +2.55%Schroders (SDR) 2,646.00p +2.40%Morrison (Wm) Supermarkets (MRW) 175.40p +2.33%Wolseley (WOS) 3,703.00p +2.29%Ashtead Group (AHT) 1,134.00p +2.25%Babcock International Group (BAB) 1,065.00p +2.21%Aberdeen Asset Management (ADN) 428.00p +2.20%FTSE 100 - FallersMarks & Spencer Group (MKS) 449.90p -2.87%Sage Group (SGE) 456.00p -0.87%SSE (SSE) 1,589.00p -0.69%Randgold Resources Ltd. (RRS) 4,787.00p -0.35%Fresnillo (FRES) 796.00p -0.25%Persimmon (PSN) 1,538.00p -0.19%Taylor Wimpey (TW.) 132.20p -0.15%FTSE 250 - RisersHowden Joinery Group (HWDN) 414.00p +5.56%Hays (HAS) 147.00p +3.52%Rightmove (RMV) 2,262.00p +2.91%Dunelm Group (DNLM) 878.50p +2.75%Man Group (EMG) 164.60p +2.75%Entertainment One Limited (ETO) 313.40p +2.72%JD Sports Fashion (JD.) 488.60p +2.69%Tullett Prebon (TLPR) 292.00p +2.67%Ted Baker (TED) 2,320.00p +2.65%Informa (INF) 474.10p +2.51%FTSE 250 - FallersHalfords Group (HFD) 437.30p -5.45%Centamin (DI) (CEY) 63.00p -2.78%Dairy Crest Group (DCG) 476.40p -2.18%Zoopla Property Group (WI) (ZPLA) 188.80p -2.02%Diploma (DPLM) 705.50p -1.88%Supergroup (SGP) 784.50p -1.01%WH Smith (SMWH) 1,328.00p -0.97%Renishaw (RSW) 2,308.00p -0.77%IP Group (IPO) 207.60p -0.76%Berkeley Group Holdings (The) (BKG) 2,428.00p -0.74%