London close: FTSE indifferent as investors look ahead to BoE, UK inflation

London stocks produced a largely indifferent but marginally higher Monday performance after centrist Emmanuel Macron nabbed France's presidency over the weekend, with traders already looking ahead to UK interest rate and inflation news.

Pro-EU former investment banker Macron defeated far-right rival Marine Le Pen with 66.1% of the vote to 33.9%.

FTSE blue-chip gains were led by retailers ahead of industry data on Tuesday, and also real estate and utility companies. Miners were sold as copper and iron ore prices fell.

Investors are looking ahead to a raft of economic news out this week, with the Bank of England's interest rate decision and latest inflation report due on Thursday.

For today, the FTSE 100 closed up 0.05% to 7,300.86 , while the FTSE 250 closed up 0.15% to 19,729.66. Wall St had opened mostly lower, a theme also seen in Europe with the Cac 40 and Dax down.

"Markets have struggled to do anything in particular this afternoon, with a general air of indifference descending," said IG chief market analyst Chris Beauchamp.

"On the face of it, Macron’s victory should provide a tonic for risk appetite, but it was so widely anticipated that the impact has been almost negligible."

"Now the focus turns to falling commodity prices, and the question of whether the recent bounce in economic data gives the European Central Bank cause to reduce its QE programme."

Jasper Lawler, senior market analyst at London Capital Group, said the FTSE 100 had bucked the trend in Europe with modest gains.

"Now that the French election has ended as expected, international investors are taking a second look at stocks in the UK ahead of the general election."

Michael Hewson, chief market analyst at CMC Markets UK, said the market's reaction to Macron's victory had definitely been a case of buy the rumour and sell the news.

"While the sense of relief is palpable amongst European leaders, markets have moved on and shifted their focus to the likelihood that the new French President will be able to enact his reform programme," said Hewson.

In London, utilities' trotted higher, helped by Centrica. It reiterated it would meet 2017 targets despite less energy use in the milder British winter and heading into what looks like a period of more hostile government policy.

Hewson continued that the FTSE 100 had shrugged off some weaker than expected China trade data, which had seen the basic resource sector remain on the back foot.

"Another slide in iron ore prices has weighed on this sector, hitting their lowest levels since October last year, sending Antofagasta, Glencore and Anglo American to the bottom of the FTSE 100," said Hewson.

Looking more closely at some stocks, Premier Foods rallied after renewing its strategic partnership with Mondelez International to produce and market Cadbury-branded cake and ambient dessert products.

Construction and engineering group Costain ticked up after saying current trading was in line with expectations and that it looks forward to reporting on further progress in 2017.

Numis Corp was trading lower as the broker reported a 38% decline in pre-tax profit for the half year and announced that its founder Oliver Hemsley will step down with immediate effect.

Market Movers

FTSE 100 (UKX) 7,300.86 0.05%
FTSE 250 (MCX) 19,729.66 0.15%
techMARK (TASX) 3,533.01 -0.32%

FTSE 100 - Risers

Intu Properties (INTU) 275.50p 2.15%
Paddy Power Betfair (PPB) 8,250.00p 2.10%
easyJet (EZJ) 1,286.00p 2.06%
Centrica (CNA) 202.40p 1.86%
Next (NXT) 4,312.00p 1.84%
Provident Financial (PFG) 3,252.00p 1.82%
SSE (SSE) 1,449.00p 1.76%
Land Securities Group (LAND) 1,129.00p 1.71%
Sainsbury (J) (SBRY) 269.50p 1.70%
Kingfisher (KGF) 342.70p 1.57%

FTSE 100 - Fallers

Anglo American (AAL) 1,009.50p -2.04%
Antofagasta (ANTO) 753.50p -2.02%
Smiths Group (SMIN) 1,652.00p -1.90%
Convatec Group (CTEC) 290.50p -1.86%
Mondi (MNDI) 2,008.00p -1.76%
CRH (CRH) 2,872.00p -1.64%
Pearson (PSON) 727.50p -1.62%
Glencore (GLEN) 284.45p -1.59%
Rio Tinto (RIO) 2,935.00p -1.48%
Shire Plc (SHP) 4,585.00p -1.47%

FTSE 250 - Risers

Restaurant Group (RTN) 347.10p 5.79%
Thomas Cook Group (TCG) 96.90p 3.21%
CLS Holdings (CLI) 200.00p 3.04%
Redefine International (RDI) 38.05p 2.87%
UBM (UBM) 718.00p 2.64%
Stagecoach Group (SGC) 214.90p 2.53%
Allied Minds (ALM) 153.50p 2.40%
Mitchells & Butlers (MAB) 273.50p 2.32%
Wizz Air Holdings (WIZZ) 1,841.00p 2.28%
Go-Ahead Group (GOG) 1,843.00p 2.28%

FTSE 250 - Fallers

BBA Aviation (BBA) 299.10p -4.68%
TalkTalk Telecom Group (TALK) 183.50p -4.12%
Vedanta Resources (VED) 602.50p -3.98%
Just Eat (JE.) 556.50p -3.64%
Kaz Minerals (KAZ) 430.50p -3.39%
NMC Health (NMC) 2,073.00p -3.13%
Evraz (EVR) 201.00p -2.85%
UDG Healthcare Public Limited Company (UDG) 740.00p -2.70%
Centamin (DI) (CEY) 153.30p -2.60%
Polymetal International (POLY) 967.50p -2.47%