London shares gained on Wednesday as the FTSE 100 Index prepared for its latest reshuffle, which is likely to see Mike Ashley's Sports Direct International (LON:SPD) relegated.
The Footsie rose 33.76 points to 6186 as Asian markets turned a blind eye to a report from credit rating Moody's downgrading the outlook on China to negative from stable.
The quarterly review of the Footsie due later was set to see Sports Direct, owned by Newcastle United chairman Ashley, and Aberdeen Asset Management (LON:ADN) falling from the top flight into the FTSE 250.
Promotion candidates included recently merged Paddy Power Betfair (LON:PPB) and international private hospital group Mediclinic (LON:MDC).
In the financial world's version of the "play-offs" were Morrisons (LON:MRW) and business publisher Informa (LON:INF), who could replace security scanner maker Smiths (LON:SMIN), retail property group Intu (LON:INTU) or Hikma Pharmaceuticals (LON:HIK).
Fresh concerns about a possible UK EU exit emerged as the world's largest money manager, Blackrock, warned of a potential fall in UK economic growth and less inward investment.
"The potential gains from the UK being able to strike trade deals on its own may prove illusory," Bloomberg quoted Blackrock's vice-chairman Philipp Hildebrand as saying.
"The realpolitik of trade deals is that the bigger you are, the harder you punch. A lone UK would have less clout."
Meanwhile, the monthly Markit/CIPS UK construction purchasing managers' index showed UK construction output growth hitting a 10-month low in February, led by the weakest rise in housing activity since June 2013.
Back in the market, Fresnillo (LON:FRES) gleamed 14.5p to 952.5p as a report showed that the Mexican silver miner was among 50 UK-listed stocks set to lift dividends by more than 10% in each of the next three years.
Rivals also rose, with Anglo American (LON:AAL) advancing 15.8p to 507.1p, Antofagasta (LON:ANTO) up 15.1p to 505.5p, Rio Tinto ticking up 36.5p to 1976.5p, BHP Billiton (LON:BLT) putting on 22.7p to 763.1p and Glencore (LON:GLEN) hardening a penny to 131.5p.
Ipek Ozkardeskaya at London Capital Group said: "The fact that Asian markets are powering ahead this morning coupled with Glasenberg’s positive comments yesterday about China as a metals consumer have helped to underpin the stock."
Tertiary Minerals (LON:TYM) climbed 6.7% to 1.2p as it gave further details of its recently awarded mining permit for its Storuman project in Sweden.
Shares in Madagascar Oil (LON:MOIL) leaked about 29% to 0.68p as it confirmed it has now signed a funding deal which could trigger the delisting of its shares from AIM.
Diamondcorp (LON:DCP) dimmed 0.25p to 8.5p on news of a 16% rise in estimated resources at the miner's 74%-owned Lace mine in South Africa.
MARKET PREVIEW
London’s blue-chip market is expected to begin Wednesday positively, following global equities higher.
Whilst much of America focussed on the ‘super Tuesday’ popularity contests between presidential candidates, Wall Street was boosted by better oil prices and positive manufacturing stats.
The Dow Jones closed out Tuesday some 348 points, 2.1%, higher at 16,865 while the S&P 500 added 2.39% rising to 1,978 and the Nasdaq gained 2.89% to 4,689.
Brent crude is almost 1% higher this morning, just below $37 per barrel while US crude futures are up 1.3% to $34.20.
Stocks in Asia are also pointing higher, with both Japan’s Nikkei and the Shanghai Composite rising more than 4%, while Hong Kong’s Hang Seng is up over 3%.
Australia’s ASX 200 climbed just over 2% to 5,021.
It is the best day for stocks in Asia for some two months.
Here, in London, spreadbetting and CFD trading firm IG Markets sees the FTSE 100 about 1% higher ahead of Wednesday’s open – calling the blue-chip benchmark at 6,205 to 6,207.