London’s blue chip stocks were staging a fightback this morning after an 84 point loss yesterday.
There were heavy falls in US overnight where the Down Jones closed 190 lower at 18,042, with the strength of the US dollar cited as the main reason by traders.
Greece concerns are likely to be at the top of the agenda in Dresden today as finance ministers convene for a G7 summit.
Meanwhile in the UK, the headlines will be dominated by the plans unveiled by the new Tory government, the key part of which is likely to be the timing of the referendum on continued EU membership.
In equities, the FTSE 100 opened 30 points higher to 6,979 with risers outnumbering fallers by more than six to one.
Leading the charge was cigarette giant Imperial Tobacco (LON:IMT) after it agreed to buy Reynolds American Inc.’s Winston, Kool, Salem and Maverick.
The company is benefitting from the Reynold-Lorillard merger as the new combined company has had to sell off some parts of the business. Shares rose 2.3% to 3,360p.
Conversely, engineering company Weir Group (LON:WEIR) was at the bottom of the pile after a downgrade from Deutsch Bank.
The broker dropped its ‘buy’ rating to a ‘hold’ after the company made its biggest gain in more than a month. Shares slipped 1.6% to 1,970p.
In other broker news, Zoopla (LON:ZPLA) caught the eye of Credit Suisse despite saying earlier this month that new competition was making the online house selling market more difficult.
The broker raised its target price 75p to 290p, a long way ahead of the current price. Shares rose more than 2% to 238p.
In small cap news, Trinity Exploration & Production (LON:TRIN) told investors its strategic review process is well underway, and it is considering a number options. Shares dropped 13% to 13.5p as it continues to hold talks with potential buyers.
In better news, renewable power supplier Rame Energy(LON:RAME) expects to start commercial sales from its Raki/Huajache wind farm project in Chile in June. Shares climbed almost 5% to 8.9p.