London open: Markets rebound as 'tapering' concerns ease

4th Jun 2013 09:10

Markets rebounded on Tuesday morning following a choppy session the day before as renewed hopes about US stimulus lifted sentiment early on.London's FTSE 100 lost 58 points yesterday, falling 0.9% to a one-month low of 6,525, after factory activity in both China and the US weakened in May. Manufacturing in the UK and Eurozone improved slightly, though the latter region was still in contraction.However, the weaker-than-expected data from the States prompted a rebound for Wall Street stocks last night, as traders hoped that the Federal Reserve could be prompted to hold off from 'tapering' its stimulus programme.Furthermore, Atlanta Fed President Dennis Lockhart said in an interview with Fox Business Network that given that macro data has yet to give clear signals, scaling back quantitative easing probably won't start at the central bank's next meeting in June. Nevertheless, traders will likely continue to tread cautiously ahead of the services-sector data on Wednesday and the all-important jobs report on Friday."European markets opened confidently today as investors mirrored a positive finish on Wall Street yesterday despite investors still being in the dark over whether US policy makers are actually thinking about drawing their stimulus measures to an end," said Financial Trader Shavaz Dhalla from Spreadex."The markets are still yet to receive any tangible news either way concerning the longevity of such stimulus measures and until investors receive a definitive answer, volatility is likely to remain."FTSE 100: Wolseley disappoints with Q3 profitPlumbing and heating products group Wolseley was among the worst performers early on despite registering a pick-up in like-for-like sales growth in the third quarter as strength in the UK and US offset a weaker performance in France and the Nordic regions. However, a 7.9% rise in trading profit to £150m came in slightly below the £153m forecast by Credit Suisse, and shares slipped early on.United Utilities was also in the red after Societe Generale cut its rating for the stock to 'hold', while Serco was downgraded by HSBC to 'underweight'.Airline peers easyJet and IAG were among the best performers early on with both stocks continuing to trade close to 52-week highs.Biopharmaceuticals giant AstraZeneca fell after saying that it will be hit by a one-off impairment charge worth $140m after admitting that it has decided not to pursue a regulatory filing for fostamatinib, an oral drug it was hoping could be an alternative treatment for rheumatoid arthritis. FTSE 250: Cobham sinks on shareholder saleDefence and aerospace group Cobham was in the red after a late report last night said an unnamed "institutional investor" is selling 39.1m shares in the company, equal to a 3.6% stake, valued at £111m.Housebuilding and construction firm Galliford Try was higher after saying it has won a £36m contract to refurbish the Alphabeta office building in Central London.FTSE 100 - RiserseasyJet (EZJ) 1,266.00p +3.69%GKN (GKN) 307.20p +2.98%ARM Holdings (ARM) 941.00p +2.39%Aberdeen Asset Management (ADN) 466.70p +2.23%BT Group (BT.A) 300.30p +2.04%International Consolidated Airlines Group SA (CDI) (IAG) 280.50p +1.93%ITV (ITV) 131.00p +1.79%London Stock Exchange Group (LSE) 1,404.00p +1.67%Barclays (BARC) 321.80p +1.48%TUI Travel (TT.) 359.00p +1.44%FTSE 100 - FallersWolseley (WOS) 3,270.00p -2.59%United Utilities Group (UU.) 749.50p -0.79%Evraz (EVR) 137.00p -0.51%Carnival (CCL) 2,156.00p -0.32%Wood Group (John) (WG.) 850.00p -0.12%Anglo American (AAL) 1,538.50p -0.10%Bunzl (BNZL) 1,282.00p -0.08%Smith & Nephew (SN.) 754.00p -0.07%National Grid (NG.) 782.00p -0.06%Antofagasta (ANTO) 970.00p -0.05%FTSE 250 - RisersMan Group (EMG) 117.60p +3.52%Rentokil Initial (RTO) 91.25p +3.17%Thomas Cook Group (TCG) 147.70p +3.14%Perform Group (PER) 570.50p +2.79%Alent (ALNT) 376.00p +2.79%Fidessa Group (FDSA) 1,972.00p +2.55%Jupiter Fund Management (JUP) 327.30p +2.54%IG Group Holdings (IGG) 595.00p +2.41%Invensys (ISYS) 406.60p +2.29%Taylor Wimpey (TW.) 97.95p +2.08%FTSE 250 - FallersCobham (COB) 272.50p -4.75%Hochschild Mining (HOC) 240.10p -1.23%African Barrick Gold (ABG) 136.80p -1.23%Carpetright (CPR) 625.00p -1.03%Ultra Electronics Holdings (ULE) 1,733.00p -0.97%Dairy Crest Group (DCG) 465.00p -0.96%Rank Group (RNK) 148.20p -0.87%Lancashire Holdings (LRE) 778.00p -0.83%Chemring Group (CHG) 272.00p -0.80%Supergroup (SGP) 749.00p -0.79%