London midday: Stocks pare losses as UK data impresses

(Sharecast News) - UK stocks were trading in the red on Wednesday but had trimmed some of their losses by lunchtime as economic data came in ahead of expectations. The FTSE 100 was down 0.2% at 8,152.19 by midday, but had rebounded off an earlier intraday low of 8,112.03 (-0.7%).

UK economic data released on Wednesday morning showed that private-sector activity expanded for the ninth straight month, with new business growth at its highest level in more than a year. The S&P Global UK composite PMI increased to 52.7 in July, up from 52.3 in May and marginally ahead of the consensus forecast of 52.6.

Markets opened lower after a raft of disappointing corporate earnings on Wall Street overnight, with Tesla shares fallling sharply in after-hours trade after the electric carmaker said net profits fell 45% in the second quarter, while Google parent Alphabet disappointed with slowing ad sales growth.

Visa, UPS and GM also underwhelmed investors with their latest numbers over the past 24 hours, with futures on the three Wall Street benchmarks showing a sea of red ahead of the opening bell.

"It is hard to see how the rally in markets can continue for now after several weaker than expected earnings reports," said Kathleen Brooks, research director at XTB.

"The S&P 500 is set to open lower on Wednesday, although it is only 100 points down from its all-time high reached last week. However, the slip in corporate earnings from the likes of Tesla and Google, which failed to set the market alight with its AI investments, suggests that the fundamental basis for a rally is slipping away as we reach the peak summer months."

easyJet and Fresnillo on the rise

Impressing the market were easyJet's third-quarter results which showed a big increase in profits driven by an 8% rise in passenger numbers and a 1% rise in revenue per seat. The FTSE 100 low-cost carrier said easyJet holidays saw 49% growth in profit before tax to £73m, with a 33% increase in passenger numbers.

Gold and silver miner Fresnillo was also putting in decent gains after saying it was on track to meet full year guidance after strong second quarter production. The Mexico-based company said quarterly attributable silver production of rose 8.4% quarter on quarter to 14.6 million ounces, but gold production was down 7.7% to 130,000 ounces.

After an early surge, Reckitt Benckiser had pared gains to trade broadly flat as investors digested the company's plans to slim down its portfolio to focus on core businesses and offloading several home care brands.The Durex and Dettol maker said it would look to sell brands including Air Wick, Mortein, Calgon and Cillit Bang. Its Mead Johnson Nutrition business, which makes Enfamil and Nutramigen, is now also up for sale.

Burberry was trading lower with European luxury stocks out of favour on the back of disappointing second-quarter figures from LVMH.

On the FTSE 250, publishing and exhibitions group Informa said it was buying rival Ascential in an agreed £1.2bn deal, causing shares in the latter to surge 26%.

Market Movers

FTSE 100 (UKX) 8,152.19 -0.19% FTSE 250 (MCX) 21,035.49 -0.27% techMARK (TASX) 4,755.23 -0.38%

FTSE 100 - Risers

easyJet (EZJ) 449.70p 5.14% Fresnillo (FRES) 623.50p 3.92% Intertek Group (ITRK) 4,788.00p 2.75% Antofagasta (ANTO) 1,950.50p 1.96% Informa (INF) 863.40p 1.94% Vistry Group (VTY) 1,340.00p 1.75% Anglo American (AAL) 2,219.50p 1.60% Smurfit Westrock (DI) (SWR) 3,791.00p 1.09% Airtel Africa (AAF) 115.80p 1.05% International Consolidated Airlines Group SA (CDI) (IAG) 166.55p 1.00%

FTSE 100 - Fallers

3i Group (III) 3,006.00p -2.12% B&M European Value Retail S.A. (DI) (BME) 456.20p -1.68% Scottish Mortgage Inv Trust (SMT) 863.80p -1.66% Land Securities Group (LAND) 623.50p -1.50% Frasers Group (FRAS) 863.00p -1.20% Intermediate Capital Group (ICG) 2,140.00p -1.20% GSK (GSK) 1,492.00p -1.16% Unilever (ULVR) 4,394.00p -1.15% Burberry Group (BRBY) 711.60p -1.08% British American Tobacco (BATS) 2,557.00p -1.08%

FTSE 250 - Risers

Ascential (ASCL) 564.50p 26.34% Aston Martin Lagonda Global Holdings (AML) 160.30p 6.87% Volution Group (FAN) 531.00p 4.53% Hochschild Mining (HOC) 182.40p 3.05% Trustpilot Group (TRST) 210.50p 2.43% Future (FUTR) 1,079.00p 2.27% Endeavour Mining (EDV) 1,771.00p 2.02% Indivior (INDV) 839.00p 1.64% Centamin (DI) (CEY) 129.00p 1.42% Inchcape (INCH) 846.00p 1.20%

FTSE 250 - Fallers

Ocado Group (OCDO) 408.80p -5.11% Breedon Group (BREE) 392.00p -4.39% RHI Magnesita N.V. (DI) (RHIM) 3,565.00p -2.60% TI Fluid Systems (TIFS) 132.80p -2.35% Primary Health Properties (PHP) 91.35p -2.30% HICL Infrastructure (HICL) 124.40p -1.89% Telecom Plus (TEP) 1,772.00p -1.88% Moonpig Group (MOON) 209.00p -1.88% Alpha Group International (ALPH) 2,435.00p -1.81% Man Group (EMG) 251.80p -1.79%