London midday: Stocks off highs as investors eye US retail sales

(Sharecast News) - London stocks were still up but off earlier highs by midday on Thursday, recovering from heavy losses a day earlier, as investors eyed the latest US retail sales data. The FTSE 100 was 0.3% firmer at 7,299.27, having slumped 1.5% on Wednesday as markets continued to be rattled by a hotter-than-expected US inflation print earlier in the week.

Richard Hunter, head of markets at Interactive Investor, said: "Investors regained some poise after the effects of the latest inflation shock subsided, with a further economic reading calming nerves.

"In the final minutes of trading on Wall Street, the main indices inched into positive territory after the release of the US producer prices Index reversed some of the damage which had previously been wrought by Tuesday's hotter than expected number.

"Prices fell for a second month in August, largely driven by a reduction in the cost of gasoline. In addition, underlying producer inflation showed a moderate rise, which could suggest that some of the inflationary supply chain blockages could be on the verge of loosening up. With food prices unchanged, attention may turn to the price of services. With the labour market remaining tight, prices are likely to remain higher and the overall has done little to change expectations of another 0.75% interest rate hike from the Federal Reserve next week.

"In the meantime, markets will turn to the release of retail sales later and how consumers are faring in light of the current economic pressures."

US retail sales figures for August are due at 1330 BST.

In equity markets, housebuilders were among the top performers, with Barratt, Berkeley and Taylor Wimpey all up. On Wednesday, figures from the Office for National Statistics showed that house prices rose in the year to July at their highest annual rate since May 2003.

Oil and gas giant Shell nudged lower as it said that company veteran Wael Sawan will succeed chief executive Ben van Beurden as he steps down from the role at the end of 2022 following a 39-year career with the group. It was reported earlier this month that van Beurden would be leaving the group.

Victoria Scholar, head of investment at Interactive Investor, said: "It is no surprise that of the reported shortlist of four candidates, renewables boss Sawan came out victorious, given the industry's laser focus on the green energy transition and slashing emissions."

Hilton Food Group slid after it warned on full-year profits as it posted a drop in interim pre-tax profit, having taken a hit from higher costs.

In broker note action, Tate & Lyle was boosted by an upgrade to 'buy' at Citi, while Currys lost ground after an initiation at 'hold' by Berenberg.

Outside the FTSE 350, THG tumbled after the ecommerce retailer downgraded its full-year expectations amid a challenging trading environment and reported a 60% decline in first-half core earnings.

Elsewhere, furniture retailer DFS fell sharply as it said there had been a reduction in the volumes of orders from the fourth quarter of the year and noted the UK furniture market continues to be challenging, with an uncertain outlook.

Market Movers

FTSE 100 (UKX) 7,299.27 0.30% FTSE 250 (MCX) 18,872.86 0.13% techMARK (TASX) 4,239.75 0.10%

FTSE 100 - Risers

Rolls-Royce Holdings (RR.) 79.11p 5.26% Ocado Group (OCDO) 643.40p 3.24% Barratt Developments (BDEV) 416.10p 2.39% Lloyds Banking Group (LLOY) 47.29p 2.34% Glencore (GLEN) 504.70p 2.20% Pershing Square Holdings Ltd NPV (PSH) 2,860.00p 2.14% Compass Group (CPG) 1,947.50p 2.12% Berkeley Group Holdings (The) (BKG) 3,545.00p 2.01% Taylor Wimpey (TW.) 105.65p 1.98% InterContinental Hotels Group (IHG) 4,901.00p 1.83%

FTSE 100 - Fallers

Melrose Industries (MRO) 113.20p -3.04% Hikma Pharmaceuticals (HIK) 1,216.00p -2.09% Burberry Group (BRBY) 1,736.50p -2.00% Haleon (HLN) 265.55p -1.76% United Utilities Group (UU.) 1,024.00p -1.44% London Stock Exchange Group (LSEG) 7,792.00p -1.37% Severn Trent (SVT) 2,651.00p -1.23% Bunzl (BNZL) 2,779.00p -1.10% Tesco (TSCO) 234.90p -1.01% National Grid (NG.) 1,043.00p -1.00%

FTSE 250 - Risers

Redrow (RDW) 495.40p 4.38% Abrdn Private Equity Opportunities Trust (APEO) 426.00p 4.16% TUI AG Reg Shs (DI) (TUI) 137.35p 3.62% Baltic Classifieds Group (BCG) 145.00p 3.57% Carnival (CCL) 794.80p 3.33% 4Imprint Group (FOUR) 3,585.00p 2.87% Aston Martin Lagonda Global Holdings (AML) 157.80p 2.67% Darktrace (DARK) 390.30p 2.55% Crest Nicholson Holdings (CRST) 225.40p 2.45% Ashmore Group (ASHM) 220.80p 2.41%

FTSE 250 - Fallers

Hilton Food Group (HFG) 689.00p -26.78% Cranswick (CWK) 2,850.00p -8.18% Greencore Group (CDI) (GNC) 82.85p -6.54% Currys (CURY) 62.00p -3.95% TBC Bank Group (TBCG) 1,768.00p -3.81% Provident Financial (PFG) 176.10p -3.56% Marks & Spencer Group (MKS) 116.35p -3.20% ASOS (ASC) 654.50p -3.18% W.A.G Payment Solutions (WPS) 93.10p -3.02% Future (FUTR) 1,649.00p -2.89%