CT: FTSE rises before Budget; pound falls on wage figures
Standard Chartered jumps as analysts warm to bank. Sterling falls on monetary policy committee vote and slowing wage growth.
The FTSE 100 has risen ahead of chancellor George Osborne's last Budget before the general election.
The UK blue-chip index was trading 45 points, or 0.7%, higher at 6,882. Standard Chartered (STAN +
) led the way, up 6.8% to £10.30, as analysts at Barclays and Bernstein upgraded their stance on the bank.
Barclays upgraded the stock to 'overweight' from 'equal weight' while Bernstein upped its rating to 'outperform' from 'underperform'.
'We expect the appointment of a new CEO to mark a turning point for Standard Chartered and see plenty of scope for the business to be refocused with a material improvement in returns back towards those of Asian peers,' said Barclays analyst Rohith Chandra-Rajan.
House builders rose ahead of the Budget, with Taylor Wimpey (TW +
) up 1.7% at 151.7p and Barratt Developments (BDEV +
) up 1.1% at 527.5p.
'Housebuilding shares could... get a boost if we get investment initiatives to build more properties, given the pressure on housing,' said Michael Hewson, chief market analyst at CMC Markets UK.
The pound fell to a five-year low of $1.466 against the dollar as minutes of the Bank of England's monetary policy committee meeting showed members voted 9-0 in favour of keeping interest rates on hold and fresh data showed UK wage growth slowing.
The Office for National Statistics said average weekly earnings rose 1.1% in January compared with the same month last year, down from a 2.4% rise in December, with fewer bonus payments pulling down the headline figure. Excluding bonus payments, pay rose by 1.6% in January, unchanged from December. Unemployment remained at 5.7%.
Investors are also looking towards the latest statement from the US Federal Reserve, in which it is expected to remove its pledge to be 'patient' before raising interest rates.
One of the world's most powerful hedge fund managers has warned that the Fed risks causing a 1937-style stock market slump when it raises interest rates.
