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UK stocks followed the lead of Asian markets and pushed ahead on Wednesday, aided by strong results from insurer Legal and General and news of record half-year completions from housebuilder Taylor Wimpey which helped to lift other shares in its sector.
Just before midday, the benchmark FTSE 100 was trading 0.5% higher at 7,138, while the more domestically focused FTSE 250 rose 0.2% to 23,346.
There was a strong showing across major US indices last night, led by 0.8% gains for both the Dow Jones and the S&P 500. The tech heavy Nasdaq Composite rallied 0.55% while small caps edged higher, represented by the Russell 2000's 0.25% advance.
Oil prices were steady with Brent crude largely unchanged at $72.41 a barrel, while the pound inched 0.12% ahead versus the dollar at $1.3933.
RISERS
Housebuilder Taylor Wimpey led the FTSE 100 risers after the company upgraded guidance following a robust first-half performance.
The shares rallied 3.6% to 170.75p after the company posted revenue of £2.2 billion for the six months to 4 July, up from last year's pandemic-hit £754.6 million. Pre-tax profits soared from a £39.8 million loss to £287.5 million profit.
Taylor Wimpey is targeting profit margins of 22% and expects to deliver 2021 full year group operating profit of £820 million, which is ahead of the top end of consensus estimates. The news also lifted FTSE 100 peer Barratt Developments by 1.3% to 716.4p.
Also strong was insurer Legal and General, which beat half year expectations. Pre-tax profit for the six months to 30 June increased to £1.4 billion from £342 million, while operating profit came in 8% ahead of market forecasts. A dividend of 5.18p per share was declared, up 5% year-on-year. Its shares rose 2.6% to 270.75p.
These consensus-beating numbers were driven by a robust performance in the group's retirement and investment management businesses.
Aero-engineer Rolls-Royce rose 1.7% to 104.89p after confirming the sale of its Bergen engines business in a €63 million deal.
Online health and beauty retailer THG unveiled plans to buy Cult Beauty in a £275 million deal. The company also raised sales growth guidance from between 30% and 35% to a range of 38% and 41% this year. Its shares advanced 1.9% to 590.5p.
FALLERS
Major fallers included food delivery platform Just Eat Takeaway.com down 2.1% to £62.54 and mining group Fresnillo which fell 2.7% to 815.72p.
Ukraine-based iron ore miner Ferrexpo declined 4.9% to 471.2p despite unveiling a 74% jump in revenues.
Construction group Morgan Sindall recorded a significant rise in first-half profits and announced a step change in its dividend, however it wasn't enough to stop the shares falling 2.7% to £23.75.
Pre-tax profits for the six months to June increased from £13.6 million to £52.4 million thanks to economic reopening, with revenues showing a 14% increase. This saw the company announce a 30p per share interim dividend, up 43% year-on-year.
OTHER NEWS
Budget airline Ryanair was flat at €16.66 after saying it carried 9.3 million passengers in July, 80% of its capacity, versus 4.4 million in the pandemic-hit July 2020 period.
Ryanair is hoping for a further lightening of travel restrictions by the UK Government later this week in a bid to rescue its key August summer season.