London open: Stocks tick higher as calm prevails; Babcock surges

(Sharecast News) - London stocks edged higher in early trade on Wednesday following a solid session on Wall Street, with markets relatively calm despite concerns about the ceasefire between Israel and Iran.

At 0830 BST, the FTSE 100 was up 0.2% at 8,776.11.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "Optimism about the fragile ceasefire holding between Iran and Israel has bubbled through markets, lifting equities, but more doubts are now creeping in about the truce holding."

Streeter said that despite the positive tone, "a little more uncertainty is seeping in".

"A leaked report from US Intelligence casting doubt on the effectiveness of the US strikes in crippling Tehran's nuclear capabilities, has led to some worries that military action could resume," she said.

"Oil prices remain volatile with Brent Crude heading slightly higher on the speculation about hostilities breaking out again. It's trading above $68 dollars a barrel, also gaining strength from industry data indicating supplies are tighter in the market."

In equity markets, defence engineering company Babcock surged to the top of the FTSE 100 after saying it expects to hit its underlying operating margin of 8% a year early and increasing its medium-term target in a 'new era' of weapons spending amid global political instability.

Babcock also posted a sharp jump in annual operating profit to �364m from �241.6m a year earlier and announced a �200m share buyback.

Heavily-weighted miners gained amid higher copper prices, with Glencore and Anglo American among the top performers.

Online retailer THG rallied as it said that second-quarter trading has been "much improved" across both its beauty and nutrition units, with the overall group returning to constant currency revenue growth.

Warehouse REIT advanced as it agreed to be taken over by bigger peer Tritax Big Box REIT for �485m. Tritax outbid an earlier proposal by Blackstone.

Market Movers

FTSE 100 (UKX) 8,776.11 0.20%

FTSE 250 (MCX) 21,369.17 0.20%

techMARK (TASX) 5,048.36 0.31%

FTSE 100 - Risers

Babcock International Group (BAB) 1,142.00p 10.55%

Glencore (GLEN) 279.25p 1.51%

Pershing Square Holdings Ltd NPV (PSH) 3,856.00p 1.26%

Rolls-Royce Holdings (RR.) 920.20p 1.21%

Anglo American (AAL) 2,079.50p 1.19%

International Consolidated Airlines Group SA (CDI) (IAG) 331.40p 1.19%

Ashtead Group (AHT) 4,469.00p 1.13%

Prudential (PRU) 920.00p 1.12%

Entain (ENT) 858.40p 1.08%

Fresnillo (FRES) 1,423.00p 0.92%

FTSE 100 - Fallers

Pearson (PSON) 1,045.50p -1.23%

WPP (WPP) 516.80p -1.00%

Croda International (CRDA) 3,035.00p -0.82%

Severn Trent (SVT) 2,724.00p -0.62%

Compass Group (CPG) 2,463.00p -0.57%

Imperial Brands (IMB) 2,874.00p -0.52%

Unilever (ULVR) 4,547.00p -0.50%

Coca-Cola HBC AG (CDI) (CCH) 3,834.00p -0.42%

United Utilities Group (UU.) 1,142.00p -0.39%

Lloyds Banking Group (LLOY) 76.36p -0.39%

FTSE 250 - Risers

Oxford Nanopore Technologies (ONT) 127.60p 2.90%

Burberry Group (BRBY) 1,040.00p 2.56%

Target Healthcare Reit Ltd (THRL) 106.00p 2.51%

Edinburgh Worldwide Inv Trust (EWI) 169.80p 2.41%

Aston Martin Lagonda Global Holdings (AML) 81.95p 2.37%

Wetherspoon (J.D.) (JDW) 777.00p 2.30%

Ocean Wilsons Holdings Ltd. (OCN) 1,575.00p 2.27%

Spire Healthcare Group (SPI) 217.50p 2.11%

Watches of Switzerland Group (WOSG) 415.40p 1.56%

Endeavour Mining (EDV) 2,242.00p 1.36%

FTSE 250 - Fallers

Morgan Advanced Materials (MGAM) 208.00p -2.80%

Hays (HAS) 65.00p -2.33%

Herald Investment Trust (HRI) 2,200.00p -2.22%

Mitchells & Butlers (MAB) 278.00p -2.11%

Breedon Group (BREE) 382.80p -0.88%

Barr (A.G.) (BAG) 678.00p -0.88%

Carnival (CCL) 1,707.50p -0.87%

Zigup (ZIG) 350.00p -0.85%

Inchcape (INCH) 691.00p -0.79%

BlackRock Smaller Companies Trust (BRSC) 1,276.00p -0.62%