Investors shrugged off downbeat economic news from the Eurozone on Friday to send London shares firmly higher.
Traded goods exports in the single currency area fell for the second month in a row in August, sparking concerns about third quarter Eurozone GDP growth prospects.
Eurozone imports edged up 0.3% month-on-month in August after a drop of 1.4% in July.
The region also slipped back into deflation in September with consumer prices falling 0.1% year-on-year, following in the footsteps of the UK earlier this week.
But French supermarket giant Carrefour provided some European cheer by racking up better sales in the region despite a downturn in China.
The FTSE 100 Index gained 28.24 points to 6366 on hopes that soft economic data would delay interest rate hikes.
Asian markets lifted overnight as a 0.2% fall in US consumer prices fuelled hopes that the US Federal Reserve will hold off from hiking interest rates soon.
In commodities, Rio Tinto (LON:RIO) reported a dip in copper output and reduced guidance for the industrial metal, confounding hopes that demand was picking up. Shares dropped 2.5p to 2510.5p.
Upmarket outfitter Burberry (LON:BRBY) was still out of fashion after telling the market Thursday that the Chinese economic downturn was taking its toll on its sales. Shares extended losses to stand 31p off at 1271p.
But non-conventional lender Provident Financial (LON:PFG) ticked up 155p to 3333p on news of a good third quarter.
UK Oil & Gas Investments (LON:UKOG) leaked 0.08p to 1.4p as it secured an extension to planning permission for its Markwells Wood well in West Sussex.
Falkland Oil & Gas (LON:FOGL) was also deep in negative territory on reporting delays in drilling its Humpback well in the South Atlantic. Shares backtracked 2p to 22p.
Gulfsands Petroleum (LON:GPX) was also 15% down after failing to secure a further extension of the Fes petroleum agreement in Morocco. Shares reversed 0.75p to 4.12p.
Magnolia Petroleum (LON:MAGP) spurted 0.07p or 15.4% to 0.52p as it pushed past the 200 well mark in its latest quarter as seven more came on stream.
LONDON OPEN
Top-flight London shares flew higher Friday after Asian bourses rose for a second day on hopes that soft economic data would delay interest rate hikes.
The FTSE 100 Index lifted 41.06 points to 6379 in early trading as Japan's Nikkei jumped 195 points and the Shanghai Composite gained 53 points.
A 0.2% fall in US consumer prices fuelled hopes that the US Federal Reserve will hold back from immediately hiking the cost of borrowing.
Mike van Dulken at Accendo Markets said: "This remains driven by weak/mixed macro data from China, US and Europe delaying expectations for a Fed rate hike and high hopes of additional global stimulus, which is considered positive for risk appetite."
Upmarket outfitter Burberry (LON:BRBY) was still out of fashion after telling the market Thursday that the Chinese economic downturn was taking its toll on its sales. Shares were 7p off at 1295p.
But non-conventional lender Provident Financial (LON:PFG) ticked up 90p to 3268p on news of a good third quarter.
UK Oil & Gas Investments (LON:UKOG) leaked 0.02p to 1.45p as it secured an extension to planning permission for its Markwells Wood well in West Sussex.
Falkland Oil & Gas (LON:FOGL) was also deep in negative territory on reporting delays in drilling its Humpback well in the South Atlantic. Shares backtracked 1.5p to 22.5p.
Gulfsands Petroleum (LON:GPX) was also 10% down as it said it had failed to secure a futher extension of the Fes petroleum agreement in Morocco.
MARKET PREVIEW
The wave of euphoria that started on Wall Street and spread across Asia’s stock markets overnight is expected to make its way to London with the FTSE 100 indicated to open sharply higher.
As perverse as it sounds, US equities were bolstered by softer than anticipated economic data.
The 0.2% fall in consumer prices adds to the weight of evidence suggesting the American economy may not be ready for an immediate hike to interest rates.
The latest jobs reading and spending numbers appear to make the case for kicking the decision on loan rates into 2016.
“Today’s US industrial and manufacturing production data for September are expected to reinforce the disappointing narrative with declines in both….which would be negative for the second month in succession,” said CMC Markets analyst Michael Hewson.
The Dow Jones added 217 points, or almost 1.3% to creep above the 17,000 level once again, while the broader based S&P 500 closed up 1.5%.
Over in Asia, the Japan’s Nikkei 225 index forged ahead 1%, the Hang Seng in Hong Kong nudged 0.6% higher and the Shanghai Composite rose 0.2%.
With the momentum definitely positive, Britain’s blue-chip index is expected to open its account with a 45 point rise to 6,383.67, according to IG.
In the market
A forward indicator, or just a simple blip? Well, analysts are split on the latest update from mining giant Rio Tinto, which reported a surprise 17% rise in iron ore shipments.
Crude oil
The Brent crude oil one -month futures contract is trading 2.81% or $1.37 higher at $50.08 per barrel.
Gold
The Gold futures contract is trading 0.7% or $8.30 lower at $1179.60 per ounce.The wave of euphoria that started on Wall Street and spread across Asia’s stock markets overnight is expected to make its way to London with the FTSE 100 indicated to open sharply higher.