London stocks held slight gains at midday on Thursday, helped along by strong performances from the likes of Informa and AstraZeneca, as investors eyed the latest US inflation data.
At 1225 GMT, the FTSE 100 was up 0.21% at 7,659.62
Craig Erlam, senior market analyst at Oanda, said: “European stock markets are continuing cautiously higher on Thursday as we await key inflation data from the US and comments from BoE Governor Andrew Bailey.
“Today’s CPI from the US is what we’ve all been waiting for this week. Fed policymakers have continued to stress their flexibility on interest rates this year, with Loretta Mester claiming that each meeting will be in play, as many now assume to be the case. Although one hike each quarter still looks like the most likely outcome.
“Of course, that depends on inflation not spiralling out of control, forcing the Fed to be more aggressive. The CPI data is expected to show prices rose 7.3% in January compared to a year ago, almost four times the Fed’s target. Another reading above here could spook the markets once more, which may explain the cautious advance we’re seeing so far today.”
US consumer price inflation for January is due at 1330 GMT. On home turf, Andrew Bailey is due to appear at an online event hosted by TheCityUK.
“The suggestion last week appeared to be that in the near term, we will see rates rising, in line with what markets are saying, but beyond that, the pace of tightening will slow again, which does not align with markets. We may see that message reinforced this morning,” Erlam said.
In equity markets, Informa surged to the top of the FTSE 100 after it announced the sale of its pharma intelligence business to investment firm Warburg Pincus for £1.9bn and the commencement of a share buyback programme.
AstraZeneca was also on the rise after it announced an increase to its annualised dividend and an upbeat outlook as the drugs company swung to a fourth-quarter loss driven by higher costs.
Housebuilders were on the rise after Redrow reported 17% a jump in interim profit and record revenue amid strong demand, and lifted its guidance for 2024.
Prudential was in the black after saying it was looking for a new boss as chief executive Mike Wells has decided to retire at the end of March after seven years in the job.
Darktrace gained after a multinational electronics corporation signed a million-dollar deal with the cyber security firm.
Beazley was up after the insurer said it swung to a full-year profit amid good demand in the cyber market, while healthcare investment trust Syncona advanced as it posted a 16% jump in third-quarter net asset value.
On the downside, information provider Relx was under the cosh even as it lifted its dividend by 6%, announced a £500m share buyback, and said it expected 2022 growth in underlying profit and revenue to be ahead of historical trends.
Consumer goods giant Unilever fell as it said fourth-quarter underlying sales grew 4.9% and announced a €3bn share buyback, but warned of the continuing impact of cost inflation and the Covid-19 pandemic and said it would make no acquisitions for the foreseeable future after having three bids for GSK’s consumer health arm rejected.
Market Movers
FTSE 100 (UKX) 7,659.62 0.21%
FTSE 250 (MCX) 22,225.62 0.19%
techMARK (TASX) 4,464.62 0.39%
FTSE 100 – Risers
Informa (INF) 611.80p 6.73%
AstraZeneca (AZN) 8,630.00p 3.18%
Rio Tinto (RIO) 5,811.00p 2.45%
Ocado Group (OCDO) 1,331.50p 2.42%
ITV (ITV) 122.55p 2.34%
Polymetal International (POLY) 1,116.50p 2.29%
Pearson (PSON) 638.00p 2.15%
Smith (DS) (SMDS) 384.30p 1.94%
International Consolidated Airlines Group SA (CDI) (IAG) 178.24p 1.87%
Airtel Africa (AAF) 141.70p 1.87%
FTSE 100 – Fallers
Evraz (EVR) 424.40p -4.63%
Relx plc (REL) 2,240.00p -3.07%
Admiral Group (ADM) 3,005.00p -2.24%
JD Sports Fashion (JD.) 178.55p -1.84%
Abrdn (ABDN) 248.90p -1.54%
Dechra Pharmaceuticals (DPH) 3,922.00p -1.36%
Unilever (ULVR) 3,777.50p -1.33%
Spirax-Sarco Engineering (SPX) 12,665.00p -1.13%
Aveva Group (AVV) 2,868.00p -1.10%
HSBC Holdings (HSBA) 555.10p -1.02%
FTSE 250 – Risers
Chrysalis Investments Limited NPV (CHRY) 188.50p 4.43%
Darktrace (DARK) 415.20p 4.37%
TUI AG Reg Shs (DI) (TUI) 292.40p 4.28%
Cineworld Group (CINE) 40.85p 4.02%
Wizz Air Holdings (WIZZ) 4,728.00p 3.46%
Edinburgh Worldwide Inv Trust (EWI) 246.00p 3.14%
Bridgepoint Group (Reg S) (BPT) 376.50p 3.01%
SSP Group (SSPG) 305.00p 2.97%
Allianz Technology Trust (ATT) 304.50p 2.87%
easyJet (EZJ) 718.60p 2.69%
FTSE 250 – Fallers
Trustpilot Group (TRST) 164.50p -3.74%
Auction Technology Group (ATG) 903.00p -3.22%
Spire Healthcare Group (SPI) 233.50p -2.71%
Paragon Banking Group (PAG) 567.50p -2.32%
Games Workshop Group (GAW) 8,155.00p -2.10%
Endeavour Mining (EDV) 1,755.00p -1.96%
Moonpig Group (MOON) 284.20p -1.86%
Close Brothers Group (CBG) 1,298.00p -1.82%
Aston Martin Lagonda Global Holdings (AML) 1,176.50p -1.75%
Tyman (TYMN) 366.50p -1.74%
