MARKET REPORT: Blue-chips bounce as investors are buoyed by China stimulus and a slowdown in shop price rises in the UK

The London stock market was in fine fettle as traders returned from the bank holiday weekend.

Investors were buoyed by a cocktail of good news concerning China and a slowdown in shop price rises in the UK.

In a positive start to the week, the FTSE 100 rose 1.7 per cent, or 126.41 points, to 7464.99 and the FTSE 250 gained 1.9 per cent, or 337.57 points, to 18468.59.

The gains came after the latest stimulus efforts by Beijing to prop up its faltering economy and provide support for transport, property and infrastructure projects.

State media said that the People’s Bank of China (PBOC) could potentially cut its reserve ratio requirements sooner than expected, providing local markets with more liquidity. Chinese officials also talked up potential fiscal support for the economy.

New confidence: In a positive start to the week, the FTSE 100 rose 1.7% and the FTSE 250 gained 1.9%

Mining stocks made gains, with Glencore up 2.9 per cent, or 12.15p, to 438.3p, Anglo American added 3.1 per cent, or 62p, to 2093p and Antofagasta rose 4.3 per cent, or 60p, to 1461.5p.

Susannah Streeter, head of money and markets at investment platform Hargreaves Lansdown, said: ‘For now this extra help has boosted sentiment but underlying questions still remain over the fragility of China’s economy.’

Figures from the British Retail Consortium (BRC) showed that shop price inflation hit 6.9 per cent in August – down from 7.6 per cent in July – to reach its lowest level in ten months.

Clive Black, an analyst at Shore Capital, said the data alongside other factors such as falling household energy bills and rising wages mean that ‘British living standards are now expanding’.

Housebuilders rallied as the Government outlined proposals to scrap EU water pollution rules in a move designed to prop up the industry and encourage more homes to be built.

Persimmon motored by 5.3 per cent, or 52p, to 1039p, Barratt Developments added 3.8 per cent, or 16.2p, to 447.5p, Taylor Wimpey gained 3.3 per cent, or 3.6p, to 112.9p, Crest Nicholson soared 7.4 per cent, or 12.6p, to 182.6p and Vistry climbed 4.1 per cent, or 29.5p, to 754.5p.

Stock Watch –  Pantheon Resources

Shares in Pantheon Resources soared after an independent report estimated its largest asset could produce nearly 1bn barrels.

The oil and gas explorer’s Kodiak field in Alaska has 962m barrels of oil and natural gas liquids that could be recovered, according to a projection by petroleum property analysts NSAI. Pantheon believes ‘this is one of the largest basin floor fan systems discovered onshore in the past few decades’. 

Shares surged 25.7 per cent, or 3.5p, to 17.1p.

Watches of Switzerland rose 5.2 per cent, or 28.5p, to 577p as it clawed back some losses having plunged by a quarter on Friday when Rolex bought its rival retailer Bucherer.

The slump came amid fears the luxury watch maker could lose its market share.

A fall in the price of bitcoin weighed on the crypto-currency miner Argo Blockchain after its revenues fell 31 per cent to £19million ($24million) in the six months to the end of June. Shares sank 6.4 per cent, or 0.57p, to 9.44p.

Hvivo is moving to a new facility in Canary Wharf, London, as it aims to expand its operations.

The clinical trial specialist said increased demand for recruiting healthy volunteers to test antiviral drugs means it requires more space.

The site, which is being funded mostly by the group’s clients, should be up and running by the second quarter of next year and will have the capacity to accommodate up to 70 quarantine beds. Shares rose 5.1 per cent, or 0.9p, to 18.4p.

Investors in Pelatro dumped their shares as the marketing software company prepared to quit the London stock market.

The group, which help telecommunication operators increase their revenue, proposed cancelling its listing on Aim because it was no longer in its ‘best interest’ given the cost, time and legal and regulatory burdens.

Finance boss Nic Hellyer also stepped down from his job.

Last month Pelatro warned it needed fresh funds following a series of payment delays and disputes. Shares, which floated at 62.5p in December 2017, plunged 69.2 per cent, or 2.25p, to 1p.

This post first appeared on Dailymail.co.uk