London midday: Stocks in the red; Convatec hit by tariff worries

(Sharecast News) - London stocks were still in the red by midday on Thursday as investors eyed speeches by Federal Reserve officials. The FTSE 100 was down 0.3% at9,226.03.

Patrick Munnelly at Tickmill Group said the stance adopted by several Fed officials on the timing of rate cuts is adding to the markets' more cautious tone.

"Futures now point to a 92% chance of a Fed rate cut in October, though expectations for total easing have scaled back to 100 basis points from 125 basis points just weeks ago," he said.

"San Francisco Fed President Mary Daly, mirroring the views of her colleagues, acknowledged the need for further rate cuts but stressed uncertainty surrounding their timing. Investors are eagerly awaiting more clarity, as key Fed officials, including New York President John Williams, are set to speak later today, potentially offering fresh insights into the board's dovish outlook amid President Donald Trump's relentless scrutiny."

In equity markets, Babcock International fell even as it reaffirmed its full-year outlook after an "encouraging" start to the year. Updating on trading, the company organic revenue growth and underlying operating margin progress had both been in line with expectations in the five months to August end.

Russ Mould, investment director at AJ Bell, said: "The uncertain geopolitical backdrop and push for European countries to boost defence spending have seen defence and nuclear engineering contractor Babcock score as one of the top performers in the FTSE 100 this year.

"The negative response to what is a fairly run of the mill and in-line trading update must be seen in this context, with the shares pausing for breath after more than doubling so far in 2025."

Medical products and technologies firm Convatec slumped after the Trump administration launched an investigation into imports of personal protective equipment, medical consumables, and medical equipment including devices.

Shares in Mitchells & Butlers fell as news that weaker sales in London and at its premium businesses disappointed investors despite the pub and restaurant group holding annual guidance on the back of a 4.2% rise in like-for-like sales.

Eurowag lost ground after TA Associates Management sold 61 million shares in the company in a placing. The shares, which represented a stake of around 8.8%, were sold at 92p each.

Phoenix, Endeavour Mining and Drax all retreated as they traded without entitlement to the dividend.

On the upside, shares in Petershill Partners rocketed after the investment firm said it plans to delist from the London stock market after concluding it was undervalued as a public company.

SSP shot higher following a report that activist hedge fund Irenic Capital Management is trying to drum up interest in a take-private deal for the Upper Crust owner after lifting its stake.

According to the Financial Times, the New York-based hedge fund is encouraging private equity groups to launch takeover bids for SSP.

The fund has shared materials about the merits of a leveraged buyout with investment bankers and private capital firms in recent weeks, according to a pitch deck seen by the Financial Times.

Safety equipment group Halma gained as it said year-to-date trading has remained in line with expectations, leading it to reiterate full-year guidance despite mixed regional performance and ongoing macroeconomic uncertainty.

Market Movers

FTSE 100 (UKX) 9,226.03 -0.26% FTSE 250 (MCX) 21,633.04 -0.26% techMARK (TASX) 5,422.34 0.00%

FTSE 100 - Risers

Rio Tinto (RIO) 4,877.50p 2.67% Beazley (BEZ) 869.00p 2.42% JD Sports Fashion (JD.) 89.62p 1.98% British American Tobacco (BATS) 3,946.00p 1.44% Anglo American (AAL) 2,709.00p 1.39% 3i Group (III) 3,920.00p 1.32% Pearson (PSON) 1,043.50p 0.97% Diageo (DGE) 1,787.50p 0.96% Halma (HLMA) 3,382.00p 0.96% Vodafone Group (VOD) 85.24p 0.95%

FTSE 100 - Fallers

Phoenix Group Holdings (PHNX) 625.50p -5.01% Convatec Group (CTEC) 224.20p -4.35% CRH (CDI) (CRH) 8,230.00p -2.56% Smurfit Westrock (DI) (SWR) 3,183.00p -2.48% Ashtead Group (AHT) 4,981.00p -2.43% St James's Place (STJ) 1,228.50p -2.04% ICG (ICG) 2,204.00p -1.87% Standard Chartered (STAN) 1,430.00p -1.58% Experian (EXPN) 3,672.00p -1.55% HSBC Holdings (HSBA) 1,022.20p -1.52%

FTSE 250 - Risers

Petershill Partners (PHLL) 307.50p 33.12% SSP Group (SSPG) 167.40p 7.24% Computacenter (CCC) 2,612.00p 4.32% Playtech (PTEC) 369.00p 2.93% Close Brothers Group (CBG) 495.80p 1.77% 4Imprint Group (FOUR) 3,120.00p 1.63% Caledonia Investments (CLDN) 377.50p 1.62% Bytes Technology Group (BYIT) 398.40p 1.58% Lancashire Holdings Limited (LRE) 659.00p 1.54% Renishaw (RSW) 3,665.00p 1.52%

FTSE 250 - Fallers

Mitchells & Butlers (MAB) 246.00p -6.45% Oxford Nanopore Technologies (ONT) 148.50p -3.62% W.A.G Payment Solutions (EWG) 95.00p -3.06% Lion Finance Group (BGEO) 7,405.00p -2.89% Morgan Sindall Group (MGNS) 4,250.00p -2.52% Chemring Group (CHG) 546.00p -2.50% Investec (INVP) 561.50p -2.26% Zigup (ZIG) 310.00p -2.21% BioPharma Credit (BPCR) 0.89p -2.19% Senior (SNR) 191.40p -2.15%