London open: Stocks lifted by Chinese manufacturing figures

14th Dec 2012 08:15

UK stocks edged higher in early trading on Friday, with upbeat data from China temporarily offsetting investor concerns over the 'fiscal cliff'.The HSBC flash manufacturing purchasing managers' index (PMI) rose from 50.5 to 50.9 in December, slightly above the 50.8 forecast. This was its highest level since October 2011."It is also the fifth consecutive month that the figure has improved which suggests, along with other data, that the economy bottomed out back in the third quarter," said analyst Craig Erlam from Alpari."As always with Chinese manufacturing data, this is good news globally as well as domestically. A strong China will be key to driving the global recovery. It also suggests that external demand is improving which is consistent with data we've seen out of the US and the eurozone in recent months," he said.However, data from Japan was less cheery. The Bank of Japan's quarterly Tankan report showed that a survey of business sentiment amongst manufacturers dropped to -12 in the three months to December, from -3 the previous quarter.Stocks fell yesterday after US House Speaker John Boehner attacked the Obama administration, saying that the White House is not serious about cutting spending to avert the 'fiscal cliff'."Unfortunately, the White House is so unserious about cutting spending that it appears willing to slow-walk our economy right up to - and over - the fiscal cliff," he said in a press conference on Thursday afternoon. FTSE 100: ENRC hit by downgradeCompany news was thin on the ground this morning as markets near the quiet Christmas period.Mining giant ENRC was a heavy faller after UBS downgraded its rating for the stock from 'buy' to 'neutral', saying it sees an "increasing risk of financial stress in 2013". The broker has slashed its target price for the shares from 680p to 270p. UBS also cut its recommendation for Anglo American to 'neutral'.In contrast, distribution and outsourcing group Bunzl was lifted by Citigroup which raised its rating to 'buy', while technology titan Smiths Group gained after an upgrade from Credit Suisse to 'outperform'.Security firm G4S has announced that it is to acquire an 87% stake in South African retail cash solutions technology provider Deposita for £8.2m.FTSE 250: Centamin rebounds but mining still suspendedGold miner Centamin rebounded strongly after saying that the fuel supply to its Sukari mine in Egypt has resumed, after the Egyptian General Petroleum Corporation went back on yesterday's decision to hit the gold miner with a retrospective payment claim. However, issues with delayed gold exports still mean that the miner's Sukari project continues to be suspended. Shares jumped 25% this morning following yesterday's near-50% drop.bwin.party digital entertainment, the online gambling group, said that Belgian authorities have dropped all legal disputes with the company after it entered into a collaboration agreement with French casino operator Partouche.FTSE 100 - RisersBunzl (BNZL) 1,071.00p +1.13%Wolseley (WOS) 2,853.00p +1.06%Smiths Group (SMIN) 1,157.00p +1.05%Experian (EXPN) 1,009.00p +1.00%Johnson Matthey (JMAT) 2,436.00p +0.95%Croda International (CRDA) 2,366.00p +0.94%Xstrata (XTA) 1,055.50p +0.91%Wood Group (John) (WG.) 739.50p +0.82%Burberry Group (BRBY) 1,272.00p +0.79%British Sky Broadcasting Group (BSY) 767.00p +0.79%FTSE 100 - FallersEurasian Natural Resources Corp. (ENRC) 262.10p -3.03%AstraZeneca (AZN) 2,923.00p -1.20%Anglo American (AAL) 1,836.50p -1.10%Prudential (PRU) 889.50p -1.00%BG Group (BG.) 1,036.50p -1.00%Aviva (AV.) 370.00p -0.75%Morrison (Wm) Supermarkets (MRW) 264.80p -0.49%National Grid (NG.) 714.00p -0.49%Standard Chartered (STAN) 1,494.00p -0.47%Schroders (SDR) 1,643.00p -0.36%FTSE 250 - RisersCentamin (DI) (CEY) 34.68p +25.20%Interserve (IRV) 381.40p +3.70%Grainger (GRI) 119.80p +2.48%Fidelity China Special Situations (FCSS) 81.85p +2.44%Ted Baker (TED) 1,114.00p +1.64%Victrex (VCT) 1,606.00p +1.58%Hays (HAS) 81.85p +1.49%Debenhams (DEB) 115.90p +1.49%Kenmare Resources (KMR) 30.42p +1.23%British Empire Securities & General Trust (BTEM) 470.90p +1.18%FTSE 250 - FallersMorgan Crucible Co (MGCR) 257.70p -3.05%Paragon Group Of Companies (PAG) 256.70p -2.02%Supergroup (SGP) 584.00p -1.60%Renishaw (RSW) 1,934.00p -1.48%Man Group (EMG) 79.95p -1.42%WH Smith (SMWH) 657.00p -1.35%Redrow (RDW) 157.90p -1.31%Bank of Georgia Holdings (BGEO) 1,028.00p -1.15%Rank Group (RNK) 138.00p -1.08%Dunelm Group (DNLM) 644.50p -0.92%BC