London midday: FTSE turns higher as miners gain; UK inflation in focus

(Sharecast News) - London stocks had popped higher by midday on Wednesday, helped by a strong showing in the mining sector and solid gains for the likes of Babcock and Marks & Spencer, as investors mulled a better-than-expected UK inflation print and Donald Trump's renewed threats against Iran. The FTSE 100 was up 0.2% at 10,347.09, reversing earlier losses, while sterling was flat against the dollar at 1.3397. Brent crude was down 2.8% at $108.21 a barrel.

Investors were digesting the latest figures from the Office for National Statistics, which showed that inflation eased in April despite the war in the Middle East, although the slowdown was not expected to last.

The consumer prices index rose 2.8% in the 12 months to April, down from 3.3% in March and below consensus for 3%. The fall was driven by lower electricity and gas prices, following a reduction in the regulator's cap on charges on 1 April.

There were also smaller rises in water and sewage bills, and in vehicle excise duty, while food price inflation fell to 3% from 3.7% in the 12 months to April.

That was only partially offset by a rise in petrol and diesel prices, and in clothing and footwear prices, which rose 0.7%, all but reversing March's 0.8% decline.

Core inflation, which strips out more volatile energy, food, alcohol and tobacco prices, rose by 2.5%, down on March's 3.1% rise, while CPI including owner occupiers' housing costs slowed to 3% from 3.4%.

Chris Beauchamp, chief market analyst at IG, said: "Consumers can take heart from the softer inflation figure, but the relief is likely to be brief. Input prices surged year-on-year, and with oil prices firmly above $100 and showing no sign of reversing there is every reason to expect the May figure will show a resumption of the unpleasant upward trend.

"Measures like trying to cap supermarket food prices and holding off on a 5p rise in fuel duty are very much symbolic when set against the potential tidal wave of pricing pressures coming our way."

The latest US-Iran developments were also in focus after Trump told reporters at the White House on Tuesday that he was "an hour away" from deciding whether to strike Iran before he was convinced to call it off for a few days. When asked how close he was to ordering an attack, Trump said the US was "all set to go" and "it would have been happening right now".

Asked how long Iran has to make a deal, Trump said he was giving Tehran "two to three days" and that the US "is not leaving Iran yet" and is "going to do it right".

Meanwhile, Iran's Revolutionary Guard threatened to extend the conflict beyond the region if the US and Israel resume their attacks.

In a statement reported by the country's semi-official Mehr news agency, the IRGC said that if attacks against Tehran resume, "the regional war that was promised will this time be extended beyond the region, and our crushing blows will bring you to ruin in places you cannot imagine".

Looking ahead to the rest of the day, attention will turn to first-quarter results from US chip giant Nvidia, due after the market close. Kathleen Brooks, research director at XTB, said analysts expect the company to report revenues of $79.1bn, up 80% in a year, earnings per share of $1.77, and net income, or profit of $43.13bn, more than double compared to a year ago.

"The market is expecting another monster report later tonight, however, the question is whether Nvidia can continue to beat expectations and if forward guidance will be enough to wow a market that is taking a breather after an epic rally," she said.

In equity markets, heavily-weighted miners rallied as copper prices advanced, with Anglo American, Antofagasta and Glencore all up.

Retailer Marks & Spencer was the standout performer on the FTSE 100 as it posted a sharp fall in annual earnings, reflecting the impact of last year's cyberattack, but said profits had recovered in the second half.

Babcock was boosted by an upgrade to 'buy' from 'add' at Peel Hunt.

Severn Trent rallied as the water utility lifted its 2028 adjusted earnings per share outlook following "another year of exceptional growth". United Utilities also gained.

RS Group surged after the industrial and electrical products distributor launched a £100m share buyback programme following a "resilient" full-year performance.

Gambling software development company Playtech advanced as it hailed a "very strong" start to 2026, with particular strength in the Americas.

British Land rose as final results showed a record year of leasing for the real estate investment trust, helping underlying profits to rise 5% to £294m.

On the downside, Experian fell. The credit-checking firm announced a $1bn share buyback as it hailed a record full year but shares slumped amid disappointment over its guidance for revenue growth.

AEP Plantations shares sank after Indonesian President Prabowo Subianto announced the country will tighten state control over its natural resources. AEP owns, operates and develops palm plantations in Indonesia and Malaysia.

Transact owner IntegraFin was weaker despite reporting a rise in first-half underlying pre-tax profit, driven by strong net inflows and favourable market movements.

Market Movers

FTSE 100 (UKX) 10,347.09 0.16% FTSE 250 (MCX) 22,634.25 0.29% techMARK (TASX) 5,905.48 0.18%

FTSE 100 - Risers

Marks & Spencer Group (MKS) 341.00p 4.50% Babcock International Group (BAB) 1,015.00p 3.17% Fresnillo (FRES) 3,271.00p 2.44% Anglo American (AAL) 3,736.00p 2.27% Antofagasta (ANTO) 3,724.00p 2.22% Rolls-Royce Holdings (RR.) 1,188.60p 2.16% IG Group Holdings (IGG) 1,775.00p 1.84% Weir Group (WEIR) 2,476.00p 1.72% Bunzl (BNZL) 2,436.00p 1.58% Scottish Mortgage Inv Trust (SMT) 1,464.00p 1.56%

FTSE 100 - Fallers

Experian (EXPN) 2,579.00p -4.72% Autotrader Group (AUTO) 489.30p -2.76% Relx plc (REL) 2,466.00p -2.33% Reckitt Benckiser Group (RKT) 4,669.00p -2.03% The Sage Group (SGE) 891.80p -1.72% JD Sports Fashion (JD.) 74.48p -1.24% Tesco (TSCO) 453.20p -1.24% Sainsbury (J) (SBRY) 307.70p -1.19% Associated British Foods (ABF) 1,811.50p -1.15% Pearson (PSON) 1,124.50p -1.14%

FTSE 250 - Risers

RS Group (RS1) 680.50p 13.24% Shawbrook Group (SHAW) 306.75p 4.09% Playtech (PTEC) 374.00p 3.14% Pan African Resources (PAF) 139.20p 2.80% Dr. Martens (DOCS) 68.30p 2.71% Edinburgh Worldwide Inv Trust (EWI) 258.50p 2.58% QinetiQ Group (QQ.) 429.60p 2.53% Polar Capital Technology Trust (PCT) 658.50p 2.49% PPHE Hotel Group Ltd (PPH) 1,546.00p 2.25% Chemring Group (CHG) 485.40p 2.23%

FTSE 250 - Fallers

AEP Plantations (AEP) 1,718.00p -22.79% C&C Group (CDI) (CCR) 107.20p -6.62% Ceres Power Holdings (CWR) 618.50p -4.69% IntegraFin Holding (IHP) 326.00p -3.70% Aston Martin Lagonda Global Holdings (AML) 43.48p -3.29% Trustpilot Group (TRST) 236.60p -2.95% Kainos Group (KNOS) 823.00p -2.72% B&M European Value Retail (BME) 160.60p -2.01% TP Icap Group (TCAP) 312.80p -2.01% GB Group (GBG) 224.50p -1.75%