London markets started the day on a strong note, with both the FTSE 100 and FTSE 250 posting strong gains and matching global markets following the UK bank holiday yesterday.
The bluechip FTSE 100 rose 1.4 percent to 7,442.18, while the midcap FTSE 250 gained 1.5 percent to 18,395.81. Strong trading was seen in many markets around the world yesterday, when trading in the UK was closed.
Investors were encouraged by data today that showed inflationary pressure in food items continuing to ease.
According to the latest data from the British Retail Consortium (BRC), food inflation fell to 11.6 per cent in August from 14.3 per cent in July.
Susannah Streeter, Head of Money and Markets at Hargreaves, said: “The penalty rate hikes that UK shoppers have been suffering are coming down, leading to several months of double-digit increases in grocery prices. There will be some much-needed relief afterwards.” Lansdowne said.
Bunzel was one of the FTSE 100’s top risers after raising its profit guidance for the coming year and boosting its interim dividend by 5.2 per cent in its half-year results. It climbed 3.9 percent.
The outsourcing firm announced the acquisition of two more companies in Poland and the Netherlands, bringing the number of acquisitions to 12 for the year.
“Acquisitions remain key to the Bunzel story, with £350m committed so far this year. Strong cash generation underpins self-funded growth and the 12 acquisitions announced so far this year highlight this intent,” said Matt Britzman, equity analyst at Hargreaves Lansdowne.
Other top investors include Prudential, which rose 3.9 percent, and Ocado, which rose 3.6 percent.
Commodity heavyweights also saw gains in metal prices after the Chinese government introduced some supportive measures for its faltering economy. Fresnelio was up 2.4 percent, Glencore 2.1 percent and Anglo American was up 2.0 percent.
Source: www.cityam.com
