London stocks were little changed by midday on Wednesday but outperforming European peers thanks to a solid performance from miners and energy shares.
The FTSE 100 was flat at 7,538.90, giving up earlier small gains, having closed up on Tuesday after Russia said it was scaling back military operations around Kyiv and Chernihiv.
Russ Mould, investment director at AJ Bell, said: “Recession is the word of the day after an important warning sign was triggered on the markets.
“Last night the yield on two-year US government bonds rose above that of the 10-year note, causing an inverted yield curve – something that has historically preceded a recession.
“Traditionally investors demand a higher return and therefore a higher yield on longer dated bonds than shorter dated ones as compensation for the greater risks from inflation and issuer default.
“Therefore, to see higher yields on shorter dated bonds versus longer-dated ones is less common and hence why investors sit up and take notice when it happens. Yesterday’s event was the first time it has occurred with US Treasuries since 2019.”
In equity markets, miners gained as metals prices rose, with Anglo American, Glencore and Rio Tinto all up, while oil giants Shell and BP also gushed higher amid firmer oil prices.
Gold miner Polymetal surged as it maintained full-year production guidance and said operations in Russia and Kazakhstan continue undisrupted.
On the downside, Pearson shares tumbled as US investment manager Apollo Global Management said it does not plan to make an offer for the educational publisher after failing to agree terms.
Russia-focussed gold producer Petropavlovsk turned lower after saying it was in the early stages of discussions with advisers and Gazprombank relating to a potential restructuring of the group’s debt.
Credit-checking firm Experian was under the cosh after a downgrade to ‘neutral’ at Citi, while Lloyds fell after a downgrade to ‘underperform’ at RBC Capital Markets.
Vesuvius was also in the red after a downgrade to ‘underweight’ at Barclays.
Market Movers
FTSE 100 (UKX) 7,538.90 0.02%
FTSE 250 (MCX) 21,210.33 -1.31%
techMARK (TASX) 4,348.90 -0.81%
FTSE 100 – Risers
Shell (SHEL) 2,088.75p 3.30%
Anglo American (AAL) 3,907.00p 2.79%
Glencore (GLEN) 493.35p 2.64%
Rio Tinto (RIO) 5,989.00p 2.46%
BP (BP.) 379.35p 2.15%
SSE (SSE) 1,739.50p 1.81%
Fresnillo (FRES) 723.80p 1.20%
BAE Systems (BA.) 721.20p 1.15%
Endeavour Mining (EDV) 1,880.00p 0.80%
Vodafone Group (VOD) 127.56p 0.79%
FTSE 100 – Fallers
Pearson (PSON) 697.60p -11.22%
Melrose Industries (MRO) 129.05p -3.55%
Experian (EXPN) 2,964.00p -3.39%
JD Sports Fashion (JD.) 155.20p -3.21%
Rightmove (RMV) 638.60p -3.13%
Flutter Entertainment (CDI) (FLTR) 8,890.00p -3.12%
International Consolidated Airlines Group SA (CDI) (IAG) 145.04p -2.98%
Berkeley Group Holdings (The) (BKG) 3,789.00p -2.82%
Whitbread (WTB) 2,852.00p -2.79%
St James’s Place (STJ) 1,477.00p -2.67%
FTSE 250 – Risers
Polymetal International (POLY) 370.10p 9.17%
Energean (ENOG) 1,127.00p 1.99%
Capricorn Energy (CNE) 220.20p 1.66%
Hochschild Mining (HOC) 127.10p 1.36%
Bellevue Healthcare Trust (Red) (BBH) 187.20p 1.30%
Tullow Oil (TLW) 51.82p 1.21%
NB Private Equity Partners Ltd. (NBPE) 1,685.00p 1.20%
Harbour Energy (HBR) 477.00p 1.02%
Centamin (DI) (CEY) 89.44p 0.97%
Impax Environmental Markets (IEM) 469.00p 0.97%
FTSE 250 – Fallers
Trustpilot Group (TRST) 143.70p -7.77%
Ferrexpo (FXPO) 181.00p -6.94%
Vesuvius (VSVS) 334.40p -6.23%
Trainline (TRN) 201.80p -5.88%
Currys (CURY) 95.10p -5.18%
TI Fluid Systems (TIFS) 194.40p -5.17%
Pets at Home Group (PETS) 376.40p -4.95%
Rank Group (RNK) 132.80p -4.87%
Wizz Air Holdings (WIZZ) 2,877.00p -4.67%
Mitie Group (MTO) 57.30p -4.66%
