UK stocks recovered from Friday's losses in early trading, despite weakness in US markets at the end of last week and a fall in Asian equity markets.
All three major US indices fell on Friday after a court ruling was seen as negative for heavyweight tech stock Apple. Meanwhile, the Hang Seng and Shanghai Composite indices were pulled lower by concerns of greater Chinese regulation of tech stocks inclusing Alibaba.
By 9.30am the FTSE 100 was trading 43 points or 0.6% higher at 7,072 led by banks and house builders while the FTSE 250 rose 70 points or 0.3% to 23,804 thanks to gains in consumer and 're-opening' stocks.
Brent crude prices were 0.3% firmer at $73.50 per barrel in response to the prolonged damage to supply from the Gulf of Mexico region inflicted by Hurricane Ida.
MARKET NEWS
Shares in specialist science and technology recruitment firm SThree (STEM) rose 7% to 588p after the group increased its annual profit guidance in a trading update for the quarter ended in August.
Group net fees for the period increased 29% to £91 million driven by robust growth in its three largest geographies of Germany (up 35%), USA (up 31%), and Netherlands (up 24%).
Bus and rail group First Group (FGP) was one of the top performers in the mid-cap index, rising 2.7% to 89p after it announced it would return £500 million to shareholders via a share buyback.
Food and clothing conglomerate AB Foods (ABF) upgraded its fourth quarter earnings guidance for both its food business and the Primark retail division in a pre-close trading update.
However, shares were 3.7% lower at £18.98 after Primark's fourth quarter sales missed analysts' estimates due to fewer shoppers venturing out onto the high street.
Digitally-focused advertising agency S4 Capital (SFOR) increased its earnings guidance for the third time this year to 40% like for like gross profit growth in interim results announced this morning.
The company also provided an upbeat outlook, saying the company’s prospects for 2022 'also look stronger'. Shares were down 3.5% in early trading due to profit taking given their extremely strong recent performance.
Specialist information and analytics company Ascential (ASCL) announced that it had acquired OneSpace, a content optimization business.
OneSpace operates a Software-as-a Service model enabling the creation of original material and customizes content. Shares were 0.4% higher at 415.8p.
UK aerospace engineer Rolls Royce (RR) and defence contractor Babcock (BAB) revealed the sale of their joint stakes in AirTanker Holdings Limited to Equitix Investment Management. Shares in Rolls Royce were 0.6% higher at 109p while Babcock International was 1.85% higher at 346.5p.
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