(Sharecast News) - London stocks rose in early trade on Tuesday, taking their cue from upbeat sessions on Wall Street and in Asia, as US voters head to the polls.
At 0840 GMT, the FTSE 100 was up 1.4% at 5,735.05, with housebuilders pacing the advance after a well-received update from Crest Nicholson.
Lukman Otunuga, senior research analyst at FXTM, said: "US futures and Asian stocks have marched into Tuesday with a spring in their step as encouraging factory activity data and expectations of a 'blue wave' victory for Democrat candidate Joe Biden have boosted risk sentiment.
"A clear Biden win, where his party retains control of the House and wins the Senate, seems like the most positive outcome for markets. Such a result will open the doors to a round of large-scale fiscal stimulus that could nurse some of the damage Covid-19 has inflicted on the US economy. Should Biden win with Republicans retaining the Senate, this may reduce the odds of a larger fiscal stimulus and could be less positive for global risk sentiment.
"A Trump victory will certainly catch markets by surprise and prove the polls wrong again. Although this outcome may result in a smaller or even delayed fiscal package, the policy continuity from his re-election could send stock prices higher over the medium term."
In equity markets, housebuilder Crest Nicholson rallied as it said full-year profit is set to be "significantly" ahead of market expectations thanks to positive trading since the end of the Spring lockdown, and announced the reinstatement of its dividend.
Other housebuilders followed suit, with Taylor Wimpey, Barratt Developments and Persimmon all trading higher.
Packaging business DS Smith gained as it said its performance has continued to improve since the trading update on 8 September, with its expectations for overall financial performance unchanged.
RSA Insurance was boosted by an upgrade to 'overweight' at Morgan Stanley. BP was also higher after an upgrade to 'equalweight' at MS.
Chemring surged as it said adjusted annual operating profit is set to be at the top end of market expectations of between £47m and £53m after trading for the year to the end of October 2020 ended "robustly".
Industrial thread maker Coats Group racked up strong gains as it lifted full-year profit guidance after a better-than-expected peak third quarter.
On the downside, Associated British Foods fell as it said full-year profits fell by 40% as store closures at its Primark clothing chain due to the coronavirus pandemic offset better performances at its sugar and food ingredients units.
Market Movers
FTSE 100 (UKX) 5,735.05 1.42%
FTSE 250 (MCX) 17,448.66 1.56%
techMARK (TASX) 3,618.21 1.08%
FTSE 100 - Risers
Taylor Wimpey (TW.) 113.75p 4.74%
Barratt Developments (BDEV) 518.00p 4.67%
RSA Insurance Group (RSA) 442.30p 3.46%
Smith (DS) (SMDS) 301.90p 3.46%
Persimmon (PSN) 2,407.00p 3.39%
Fresnillo (FRES) 1,250.00p 3.35%
Anglo American (AAL) 1,879.60p 3.27%
Ashtead Group (AHT) 2,983.00p 3.25%
JD Sports Fashion (JD.) 712.60p 3.13%
Intermediate Capital Group (ICP) 1,208.00p 2.98%
FTSE 100 - Fallers
Associated British Foods (ABF) 1,700.00p -1.28%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,720.00p -0.48%
Unilever (ULVR) 4,460.00p -0.42%
Rolls-Royce Holdings (RR.) 76.34p -0.29%
Reckitt Benckiser Group (RB.) 6,886.00p -0.23%
Vodafone Group (VOD) 105.82p -0.17%
Morrison (Wm) Supermarkets (MRW) 163.65p 0.12%
Rentokil Initial (RTO) 528.60p 0.15%
Smith & Nephew (SN.) 1,339.50p 0.22%
BT Group (BT.A) 102.10p 0.39%
FTSE 250 - Risers
Crest Nicholson Holdings (CRST) 256.20p 17.74%
Coats Group (COA) 62.70p 15.26%
IWG (IWG) 275.40p 8.08%
Network International Holdings (NETW) 217.80p 5.73%
Countryside Properties (CSP) 349.00p 5.57%
Bellway (BWY) 2,462.00p 4.72%
Petrofac Ltd. (PFC) 126.65p 4.67%
Redrow (RDW) 428.60p 4.64%
Centrica (CNA) 39.02p 4.61%
Hochschild Mining (HOC) 233.00p 4.39%
FTSE 250 - Fallers
Rank Group (RNK) 86.90p -2.14%
PureTech Health (PRTC) 252.00p -1.18%
Herald Investment Trust (HRI) 1,710.00p -0.93%
NextEnergy Solar Fund Limited Red (NESF) 107.00p -0.74%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,720.00p -0.48%
AVI Global Trust (AGT) 734.00p -0.41%
Convatec Group (CTEC) 179.90p -0.33%
BBGI Global Infrastructure S.A. NPV (DI) (BBGI) 172.00p -0.12%
Alternative Credit Investments (ACI) 860.00p 0.00%
Cairn Energy (CNE) 144.00p 0.00%