London open: Stocks fall amid inflation, energy concerns

(Sharecast News) - London stocks fell in early trade on Tuesday as concerns about an energy crisis in Europe and ongoing worries about inflation continued to weigh on sentiment. At 0840 BST, the FTSE 100 was down 0.5% at 7,498.36.

Lukman Otunuga, senior research analyst at FXTM, said: "There is a strong sense of unease across financial markets as investors grapple with inflation concerns, jitters over tightening US monetary policy, and recession fears.

"This will be a big week for markets thanks to the annual Jackson Hole Economic Symposium where central bankers and financial heavyweights congregate to discuss major economic issues. Investors hope to use this major event to gain fresh insight into the Fed's thoughts on inflation, economic growth, and monetary policy.

"All eyes will be on Federal Reserve Chair Jerome Powell's speech on Friday which is the main risk event and potential market shaker. What Powell reveals during the speech or chooses to hold back could set the tone for global markets in the weeks ahead."

On the macroeconomic front, the S&P Global/CIPS manufacturing and services PMIs for August are due at 0930 BST.

In equity markets, Wood Group tumbled after it posted a decline in first-half operating profit as revenue dipped.

In the six months to 30 June, operating profit before exceptional items fell 8.9% to $41m, with revenue down 0.4% to $2.6bn. The consulting division saw revenues rise 2% thanks to increased demand for the company's energy solutions, while the operations segment saw revenues grow 18%, supported by an improved market for oil and gas.

However, as expected, revenue in the projects arm fell 15% as Wood Group continues to see the impact from its move away from large-scale projects and as customer investment has yet to fully pick up.

Elsewhere, BT Group gained after it said the UK government won't be taking any action over French billionaire and Altice owner Patrick Drahi's stake in the telecoms group.

Drahi increased his stake in BT in November 2021 to 18% from 12.1% through Altice, making him the biggest shareholder. This prompted the UK government to review the investment on the grounds of national security.

Market Movers

FTSE 100 (UKX) 7,498.36 -0.47% FTSE 250 (MCX) 19,471.14 -0.14% techMARK (TASX) 4,269.14 -0.57%

FTSE 100 - Risers

Harbour Energy (HBR) 413.30p 1.80% Antofagasta (ANTO) 1,143.00p 1.60% Kingfisher (KGF) 241.00p 1.47% BT Group (BT.A) 158.25p 1.25% Pershing Square Holdings Ltd NPV (PSH) 2,715.00p 0.93% Glencore (GLEN) 496.55p 0.88% BP (BP.) 452.15p 0.70% Anglo American (AAL) 2,873.50p 0.68% Entain (ENT) 1,298.00p 0.66% Prudential (PRU) 946.60p 0.57%

FTSE 100 - Fallers

Smiths Group (SMIN) 1,537.50p -1.88% British American Tobacco (BATS) 3,451.00p -1.65% Halma (HLMA) 2,193.00p -1.48% Informa (INF) 559.40p -1.44% Relx plc (REL) 2,405.00p -1.43% Dechra Pharmaceuticals (DPH) 3,452.00p -1.37% HSBC Holdings (HSBA) 531.10p -1.32% Vodafone Group (VOD) 118.34p -1.28% Imperial Brands (IMB) 1,898.00p -1.25% Rentokil Initial (RTO) 538.20p -1.25%

FTSE 250 - Risers

BlackRock World Mining Trust (BRWM) 613.00p 2.68% Hammerson (HMSO) 23.01p 2.13% Synthomer (SYNT) 200.80p 1.67% Murray Income Trust (MUT) 858.00p 1.42% Provident Financial (PFG) 187.00p 1.30% Biffa (BIFF) 404.00p 1.15% Tullow Oil (TLW) 49.20p 1.15% Wetherspoon (J.D.) (JDW) 528.50p 1.15% easyJet (EZJ) 368.40p 1.07% TP Icap Group (TCAP) 157.00p 1.03%

FTSE 250 - Fallers

Wood Group (John) (WG.) 135.85p -9.43% Molten Ventures (GROW) 384.40p -1.99% Genus (GNS) 2,554.00p -1.77% Greencore Group (CDI) (GNC) 91.05p -1.67% Morgan Advanced Materials (MGAM) 280.50p -1.58% Balfour Beatty (BBY) 314.80p -1.56% JPMorgan Japanese Inv Trust (JFJ) 483.00p -1.43% Finsbury Growth & Income Trust (FGT) 860.00p -1.38% Babcock International Group (BAB) 330.40p -1.31% Carnival (CCL) 708.40p -1.25%