UK stocks started Thursday’s session on a firmer footing, responding to a positive performance in both the US and Asia, with all the major US indices ending the session in positive territory and the Hang Seng and Shenzhen indices ending 2.8% and 1.6% higher respectively.

On the domestic front, concerns over elevated gas prices started to ease after Russia offered to increase supplies while house prices rose by 1.7% in September according to the Halifax building society, the biggest monthly increase since February 2007.

By 9.30am the FTSE 100 was trading 51 points or 0.7% higher at 7047 while the FTSE 250 Index was 77 points or 0.3% higher at 22,463.

MARKET NEWS

Miners dominated the  FTSE 100 leader board in early trading with Antofagasta (ANTO) gaining 3.8%, Anglo American (AAL) 2.8% higher and Fresnillo (FRES) up 2.6% on the rebound in Chinese stocks.

Online trading platform CMC Markets (CMCX) forecast a decline in first-half revenue following a more subdued period of client trading activity since the beginning of the year.

Operating income for the six months to 30 September 2021 was expected to be around £126 million. Leveraged trading revenue was anticipated to decline to £100 million from £200 million, on a year-on-year basis. Shares eased 0.5% lower to 275p.

Packaging company Mondi (MNDI) reported an increase in earnings as a result of robust volume growth coupled with higher prices. Earnings before interest, tax, depreciation and amortization or EBITDA for the third quarter increased by 27% on a year-on-year basis to £388 million. Shares gained 1% to £18.06.

Oil major Royal Dutch Shell (RDSB) cautioned that elevated natural gas and electricity prices would have a significant impact on its quarterly revenue. The group also highlighted the impact of disruptions caused by Hurricane Ida.

Third quarter earnings and cash flow are expected to be negatively impacted by approximately $400 million. However, shares traded 0.3% higher at £16.58.

Leisure cruise operator Carnival Corporation (CCL) announced that its cruise company, Carnival Cruise Line, planned to restart more operations in January and February. Shares moved 1.1% higher to £16.68.

Ventilation company Volution (FAN) reported a 106% increase in pre-tax profit to £30 million and resumed dividends with a total payment for the year of 6.3p per share, lifting the shares by 0.2% to 475.5p.

FOR A LIST OF FTSE 100 RISERS AND FALLERS SEE HERE

Disclaimer: Ian Conway, who edited this story, owns shares in Antofagasta

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Issue Date: 07 Oct 2021