London open: FTSE gains after encouraging China data; Vistry, BP updates in focus

(Sharecast News) - London stocks rose in early trade on Wednesday as investors mulled encouraging Chinese trade data, with trading updates from Vistry and BP in focus.

At 0845 GMT, the FTSE 100 was up 0.3% at 10,171.12.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "UK stocks opened higher this morning, tracking a reasonably positive start across most of Europe. With few major catalysts on the calendar, trading is likely to stay range-bound, as investors digest results from troubled housebuilder Vistry and a slightly soft trading update from BP.

"US markets had a choppy session last night. Well-behaved inflation gave an early boost, with core CPI coming in at 2.6% versus the 2.7% expected, supporting hopes for at least two rate cuts this year. Bond yields dipped on the news, but equities couldn't hold their morning gains, finishing the day mostly flat, as the S&P closed just shy of a record high. Energy stocks shone on rising crude prices amid Middle East tensions, while banks lagged after JP Morgan's earnings beat was overshadowed by concerns over potential rate caps on credit cards."

Investors were digesting the latest data out of China, which showed that its trade surplus with the rest of the world reached a record $1.2trn in 2025 as exports to the European Union and Southeast Asia surged in response to higher tariffs in the US.

In dollar terms, the world's second-largest economy reported a trade balance of $1.189trn last year, up from 2024's record of $993bn.

Still to come, the US producer price index and retail sales for November are due at 1330 GMT. On the corporate front, quarterly earnings from Citigroup and Bank of America will be out later in the day.

In UK equity markets, Diploma rallied after saying it had delivered a "very strong" first-quarter performance, with organic revenues growing 14% during the period.

Insurer Prudential gained as it named City veteran Douglas Flint as its next chair. Flint, who spent more than two decades at HSBC, including seven as group chair, will replace current incumbent Shriti Vadera, who is retiring.

On the downside, energy giant BP gushed lower after saying it expects to take an impairment charge of $4bn - $5bn in the fourth quarter, mainly related to its energy transition businesses.

Group production in the fourth quarter was expected to be broadly flat compared to the prior quarter, with production broadly flat in oil production & operations and lower in gas & low carbon energy.

Housebuilder Vistry was also in the red as it reiterated full-year guidance despite Budget uncertainty weighing on private house sales in the second half. Updating on trading in the year to December end, Vistry confirmed adjusted pre-tax profits were on track to come in around �270m, up from last year's �263.5m and in line with expectations.

Revenues, however, were broadly unchanged at �4.2bn, after the total average selling price rose 3% to �282,000 but completions fell 9% to 15,700.

Vistry said the slowdown in sales reflected "uncertainty driven by the Budget, causing a more subdued market in the third quarter and the first half of the fourth quarter".

Educational publisher Pearson tumbled despite saying it expects to report 2025 results in line with guidance, with all sides of the business contributing to growth.

Recruiter Hays fell as it reported a drop in net fees, citing challenging conditions in the permanent segment and a decline in average hours worked in Germany.

Me Group slid after shareholder Montefiore Investment sold just over 12.5m shares in the company in a placing.

Reckitt Benckiser was weaker after RBC Capital Markets downgraded the stock to 'sector perform' from 'outperform' and cut the price target to 6,200p from 6,400p.

Bytes Technology was knocked lower by a downgrade to 'hold' from 'buy' at Jefferies.