London midday: Stocks drift lower

(Sharecast News) - Stocks in London were holding slightly lower come midday as they waited on the latest inflation data from across the Channel. As of 12 BST, the FTSE 100 was drifting down by 0.15% to 7,489.14, alongside a 0.52% dip on the second-tier index to 18,316.42.

Financial markets' attention was expected to be on a preliminary reading for German consumer prices in June due out at 1300 BST.

Ahead of that, it was reported that the annual rate of increase in Spanish consumer prices fell below 2% in June - for the first time in two years.

That chimed with a drop in Italy's cost of living reported during the previous session.

As Michael Hewson, chief market analyst at CMC Markets UK put it: "There is the hope that upcoming data could prompt a softening of [central banks'] hawkish [messaging] starting today with the latest June inflation numbers from Germany."

On home shores, the Bank of England said that Britons' net borrowing slowed from £1.5bn in April to £1.1bn in May (consensus: £1.5bn).

In the background, the Riksbank went ahead and announced a 25 basis point hike in interest rates to 3.75%, as expected.

Stateside meanwhile, the key release of the session would be the Department of Labor's weekly unemployment claims figures at 1330 BST.

Companies' latest updates please

Dutch discounter Action is on track to deliver another strong quarter of profit growth, owner 3i Group said on Thursday. In a brief trading update ahead of its annual general meeting, the blue chip investment firm said the retailer had seen "very strong" sales growth in the year to date, with like-for-like sales up 22% by the end of week 25.

B&M European Value Retail reported a 13.5% rise in group first quarter revenue, in line with expectations, as consumers sought lower prices amid the cost of living crisis. Like-for-like sales in the UK were up 9.2% as both grocery and general merchandise categories performed "very well, driven by consistently strong and positive LFL transaction numbers", the company said in a trading statement on Thursday.

UK insurer Direct Line said rectifying unfair motor claim payments over a five-year period to 2022 would not have a "material financial impact" on this year's results. The company was on Wednesday ordered by Britain's Financial Conduct Authority to carry out a review of total losses where vehicles had been written off after it admitted it had underpaid some car and van insurance customers.

Market Movers

FTSE 100 (UKX) 7,486.33 -0.19% FTSE 250 (MCX) 18,316.48 -0.52% techMARK (TASX) 4,453.97 -0.45%

FTSE 100 - Risers

Ocado Group (OCDO) 545.40p 2.94% 3i Group (III) 1,912.00p 1.62% Rightmove (RMV) 522.60p 1.28% Barclays (BARC) 149.96p 1.09% Smurfit Kappa Group (CDI) (SKG) 2,622.00p 1.00% Abrdn (ABDN) 216.50p 0.84% JD Sports Fashion (JD.) 145.25p 0.76% Smith (DS) (SMDS) 270.10p 0.71% NATWEST GROUP (NWG) 235.60p 0.68% Diageo (DGE) 3,350.00p 0.66%

FTSE 100 - Fallers

B&M European Value Retail S.A. (DI) (BME) 552.40p -6.47% Rolls-Royce Holdings (RR.) 150.50p -3.40% WPP (WPP) 824.40p -3.15% Severn Trent (SVT) 2,605.00p -3.05% Tesco (TSCO) 250.60p -2.07% Convatec Group (CTEC) 204.20p -1.92% Burberry Group (BRBY) 2,100.00p -1.78% Persimmon (PSN) 1,023.50p -1.68% Centrica (CNA) 118.90p -1.61% Antofagasta (ANTO) 1,438.50p -1.44%

FTSE 250 - Risers

Serco Group (SRP) 156.70p 10.12% Morgan Sindall Group (MGNS) 1,820.00p 4.60% Aston Martin Lagonda Global Holdings (AML) 344.80p 3.05% Capita (CPI) 28.26p 2.99% Paragon Banking Group (PAG) 533.50p 1.72% Ithaca Energy (ITH) 148.40p 1.64% TI Fluid Systems (TIFS) 134.20p 1.36% 3i Infrastructure (3IN) 306.00p 1.16% Carnival (CCL) 1,233.00p 1.15% OSB Group (OSB) 478.40p 1.10%

FTSE 250 - Fallers

Liontrust Asset Management (LIO) 727.50p -6.31% Urban Logistics Reit (SHED) 115.00p -5.12% IWG (IWG) 133.20p -4.86% Ferrexpo (FXPO) 90.35p -4.84% TR Property Inv Trust (TRY) 265.50p -4.32% Bank of Georgia Group (BGEO) 3,015.00p -4.29% TP Icap Group (TCAP) 151.60p -3.87% Genuit Group (GEN) 293.00p -3.30% Pennon Group (PNN) 718.50p -2.97% Babcock International Group (BAB) 290.80p -2.81%