Proactive Investors - The FTSE 100 made a strong start to trading after the long weekend testing the 7,800 mark once more with mining stocks leading the way.
At 8.15am London's lead index was up 49.91 points or 0.6% at 7,791.47 while the broader FTSE 250 advanced to 18,913.19, up 116.16 points, or 0.6%.
Gains in US blue chips on Monday, while London remained closed, provided support as did the rising oil price which pushed shares in index heavyweights BP PLC (LON:BP.) and Shell (LON:RDSa) higher.
Brent crude increased 0.7% to US$84.75/barrel ahead of the release of data on US crude inventories, which analysts expect to show a contraction.
BP shares rose 1.3% as it also announced it had joined forces with Harbour Energy (LON:HBR) to develop the Viking carbon capture transportation and storage (CCS) project in the Humber.
Under the deal, Harbour Energy will continue as operator of Viking CCS with a 60% holding while BP will take a 40% non-operated stake.
Harbour Energy shares advanced 0.9% while Shell PLC (LON:SHEL) was 1.1% to the good.
Mining stocks also rose with Glencore (LON:GLEN), Anglo American (LON:AAL) and Rio Tinto (LON:RIO) all prominent risers.
Elsewhere, figures from the latest BRC-KPMG survey showed total UK retail sales rose 5.1% in March against the previous year, slowing from an increase of 5.2% in February.
This was above the three-month average growth of 4.8%, as well as the 12-month average of 2.6%.
Like-for-like retail sales advanced 4.9% in March against the previous year, unchanged from February ahead of the three month and 12-month averages of 4.6% and 2.1% respectively.
Helen Dickinson, chief executive of British Retail Consortium said: "While the wettest March in over forty years dampened sales growth for fashion, gardening and DIY products, Mother's Day brightened up sales for the month."
But Gabriella Dickens at Pantheon Macroeconomics March’s said the data suggested the recovery in retail sales that occurred during the first two months of the year has faltered.
“After seasonally adjusting and deflating the BRC’s total sales data, we think that it is consistent with around a 1.0% month-to-month fall in the official measure of retail sales volumes,” she said.
She explained this made sense given This setback makes sense, given the continued weakness of consumers’ confidence and the ongoing squeeze on real disposable incomes from high inflation and rising interest rates.
Retail stocks were generally a firm feature with Next PLC up 1.6%, Marks and Spencer (LON:MKS) up 2.5% and ASOS PLC (LON:ASOS) up 3.8%.
Retail sales remain resilient in March - BRC
UK retail sales continued to grow in March but at a marginally slower pace than February according to figures British Retail Consortium-KPMG.
Total UK retail sales rose 5.1% in March against the previous year, slowing from an increase of 5.2% in February.
This was above the three-month average growth of 4.8%, as well as the 12-month average of 2.6%.
Like-for-like retail sales advanced 4.9% in March against the previous year, unchanged from February ahead of the three month and 12-month averages of 4.6% and 2.1% respectively.
Helen Dickinson, chief executive of British Retail Consortium said: "While the wettest March in over forty years dampened sales growth for fashion, gardening and DIY products, Mother's Day brightened up sales for the month."
"With consumer confidence edging up and big events on the horizon such as the King's Coronation, retailers have reason for a spring in their step.
“However, extensive cost pressures on business remains, and government must ensure it minimises incoming regulatory burdens."
Food sales increased 8.5% against the previous year on both a total and LFL basis over the three months to March.
Non-food sales increased 1.8% on a total basis and 1.4% on a LFL basis against the previous year over the three months to March.
AstraZeneca (NASDAQ:AZN) simplifies RSV agreement in the US
AstraZeneca PLC, Swedish Orphan Biovitrum AB (Sobi) and Sanofi (EPA:SASY) have updated and simplified their agreements relating to the development and commercialisation of nirsevimab in the US.
Nirsevimab is designed to protect newborns and infants during their first respiratory syncytial virus (RSV) and for children up to 24 months of age who remain vulnerable to severe RSV disease.
Under the new arrangements, Sobi has entered into a direct relationship with Sanofi, replacing the previous participation agreement with AstraZeneca agreed in November 2018.
Under the previous deal AstraZeneca had to provision the risk adjusted value of the discounted cash flow of future payments to be made to Sobi as a liability.
As a result of this simpler agreement, AstraZeneca will record a gain of US$0.7bn, to be recognised in core other operating income in 2023.
The Anglo-Swedish pharma giant said this does not impact financial guidance for 2023.
Harbour Energy PLC (LSE:HBR) and BP PLC (LSE:BP.) have joined forces to develop the Viking CCS transportation and storage project.
Under the deal, Harbour energy will continue as operator of Viking CCS with a 60% holding while BP will snap up a 40% non-operated stake.
Located close to the Humber, Viking CCS has the potential to meet one third of the UK Government's target to capture and store up to 30mln tonnes of CO2 a year by 2030, a statement from both oil firms and gas firms said.
The announcement follows the Government's recent decision to launch Track 2 of its CCS cluster sequencing process, and its recognition that Viking CCS is one of two leading transport and storage system contenders for this process.
The delivery of the Viking project could unlock up to £7bn of investment across the full CO2 capture, transport, and storage value chain over the next decade, creating over 10,000 jobs during construction, and providing an estimated £4bn of gross value add to the Humber and its surrounding areas, Harbour and BP said.
The two groups already share an interest in the Lincolnshire Offshore Gas Gathering System pipeline which is intended to be repurposed as part of the project which provides a low-cost opportunity to connect customers to the depleted Viking gas fields.
Viking CCS also has access to a planned new CO2 shipping terminal at Associated British Ports' Port of Immingham to help ship CO2 elsewhere in the UK or internationally.
Subject to the outcome of the Track 2 Cluster Sequencing Process, a final investment decision is expected in 2024.
The project could be operational as early as 2027 and potentially storing up to 10mln tonnes of CO2 per year by 2030.
Linda Z Cook, CEO of Harbour Energy, commented: “Viking CCS has the potential to unlock billions of pounds of investment across the full CCS value chain and is crucial for the UK to meet its emissions reduction targets."