London stocks were firmly in the red by midday on Wednesday amid worries about rising inflation, after the release of the latest UK reading.
The FTSE 100 was down 1.1% at 6,955.92 as inflation figures sparked fears of monetary policy tightening by the Bank of England.
Figures released earlier by the Office for National Statistics showed inflation hit its highest level in more than a year in April amid higher household utility bills and clothes prices.
The consumer price inflation rate rose to 1.5% in the 12 months to April from 0.7% in March, coming in about expectations of 1.4% and marking the highest reading since March 2020. The rate of core inflation – which strips out volatile elements such as food and energy prices – increased to 1.3% from 1.1%.
On a monthly basis, CPI rose by 0.6% in following a 0.3% increase in March.
ONS chief economist Grant Fitzner said: “Inflation rose in April, mainly due to prices rising this year compared with the falls seen at the start of the pandemic this time last year. This was seen most clearly in household utility bills and clothing prices.
“As the price of crude oil continues to rise, this has fed through to the cost of motor fuels, which are now at their highest since January 2020.”
Russ Mould, investment director at AJ Bell, said: “Inflation concerns continue to trouble investors, with the UK among the countries reporting a growing cost of living. A key focal point for the market is whether economies are running too hot and what central banks might do to cool them down.”
In equity markets, miners were under the cosh as copper and iron prices fell, with Antofagasta, BHP, Anglo American and Rio Tinto all weaker.
On the upside, plumbing and heating products distributor Ferguson was sitting pretty at the top of the FTSE 100 as it lifted its full-year guidance after better-than-expected third-quarter results.
Infrastructure group John Laing rallied after saying it had agreed to a £2bn takeover by US buyout firm KKR.
Media group Future advanced as it said annual results would be well ahead of market expectations after profit more than doubled in the first half.
Dunelm gained after the homeware retailer said annual pre-tax profit was set to be “significantly” ahead of analysts’ expectations, as it hailed a strong performance in the five weeks since reopening.
Industrial thread manufacturer Coats Group also rose after saying its full-year performance would be “slightly ahead” of its previous expectations as it reported a return to organic revenue growth.
Mr Kipling and Bisto owner Premier Foods pushed higher as it reinstated its dividend after 13 years and hailed an “outstanding” year, underpinned by more at-home food consumption during the pandemic.
Drinks company C&C Group was also up after an upgrade to ‘buy’ at Berenberg.
Market Movers
FTSE 100 (UKX) 6,955.92 -1.11%
FTSE 250 (MCX) 22,220.39 -0.50%
techMARK (TASX) 4,232.37 -0.94%
FTSE 100 – Risers
Ferguson (FERG) 9,528.00p 2.78%
NATWEST GROUP PLC ORD 100P (NWG) 200.00p 0.73%
Imperial Brands (IMB) 1,621.50p 0.46%
Tesco (TSCO) 232.40p 0.26%
Unilever (ULVR) 4,286.50p 0.18%
SEGRO (SGRO) 1,008.00p 0.15%
Rentokil Initial (RTO) 470.60p 0.15%
Auto Trader Group (AUTO) 552.60p 0.14%
AstraZeneca (AZN) 7,941.00p 0.14%
Barclays (BARC) 180.34p 0.04%
FTSE 100 – Fallers
Anglo American (AAL) 3,163.50p -4.43%
Antofagasta (ANTO) 1,559.00p -3.41%
BHP Group (BHP) 2,168.50p -3.21%
Fresnillo (FRES) 866.80p -3.13%
Scottish Mortgage Inv Trust (SMT) 1,112.00p -2.97%
Renishaw (RSW) 5,285.00p -2.94%
Glencore (GLEN) 315.40p -2.83%
Rio Tinto (RIO) 6,081.00p -2.70%
Experian (EXPN) 2,560.00p -2.66%
Taylor Wimpey (TW.) 171.35p -2.61%
FTSE 250 – Risers
John Laing Group (JLG) 401.00p 11.08%
Future (FUTR) 2,588.00p 8.10%
Dunelm Group (DNLM) 1,545.00p 5.82%
Coats Group (COA) 62.30p 5.59%
C&C Group (CDI) (CCR) 310.00p 5.44%
4Imprint Group (FOUR) 2,655.00p 4.32%
Premier Foods (PFD) 106.40p 3.91%
Oxford Biomedica (OXB) 1,136.00p 2.71%
LXI Reit (LXI) 139.60p 2.65%
Great Portland Estates (GPOR) 734.50p 2.51%
FTSE 250 – Fallers
Hochschild Mining (HOC) 194.50p -4.75%
Trainline (TRN) 420.00p -3.76%
Ferrexpo (FXPO) 472.60p -3.67%
Network International Holdings (NETW) 385.40p -3.51%
Tullow Oil (TLW) 51.98p -3.35%
Micro Focus International (MCRO) 487.10p -3.24%
Allianz Technology Trust (ATT) 250.00p -3.10%
Carnival (CCL) 1,608.20p -3.09%
Meggitt (MGGT) 482.90p -2.93%
Capita (CPI) 40.68p -2.89%
