London close: Stocks reverse losses following Belgium attacks

The FTSE 100 closed slightly higher on Tuesday, reversing losses from earlier in the session after explosions in Brussels hurt investor sentiment.

At least 34 people were killed and several others injured after suicide bombers launched twin attacks on Brussels Zaventem airport and the city's Maelbeek metro station on Tuesday morning.

The Islamic State of Iraq and the Levant claimed responsibility for the explosions, according to AMAQ, a news agency close to the extremist group.

“Markets recovered some of the losses as the afternoon came around. The sad reality is that the more frequent these kinds of events become, the more markets become immune and the response in prices becomes less dramatic,” said Jasper Lawler, market analyst at CMC Markets.

Travel and leisure stocks plunged in response to the reports including International Consolidated Airlines, InterContinental Hotels Group, TUI AG, Carnival and Thomas Cook.

On another downside for the market, UK inflation remained depressed at low levels in February as rising food prices were offset by falling prices for second-hand cars and bicycles.

According to the Office for National Statistics, the consumer price index remained at 0.3% in February compared to the same month last year, which was shy of consensus forecasts for a slight rise to 0.4%.

Core inflation, a rate that excludes volatile prices such as for fuel and food, held at 1.2%, rather than nudging up to 1.3% as had been expected.

In its February Quarterly Inflation Report, the Bank of England forecast inflation to average 0.4% in the first quarter.

"Low inflation coupled with an anaemic outlook for the global economy, means there is little appetite from the Bank of England to raise UK rates any time soon," said Maike Currie, investment director for personal investing at Fidelity International.

Elsewhere, German investor confidence came in a weaker than expected for March, according to the latest survey from the ZEW Center for European Economic Research in Mannheim.

The index of investor and analyst expectations rose 3.3 points from the previous month to 4.3 points, but this was below economists’ forecast of 5.4.

In the US, Markit’s flash US manufacturing PMI nudged up to 51.4 in March from 51.3 the previous month, missing forecasts of 51.9. The reading was well below the post-crisis average of 54.1 but above the 50 mark that separates expansion from contraction.

US house prices nudged higher in January led by increases in the Northwest and Southeast. The Federal Housing Finance Agency´s monthly house price index rose 0.5% month-on-month in January to 230.7.

Meanwhile, oil prices were mixed with Brent crude rising 0.26% to $41.65 per barrel and West Texas Intermediate falling 0.41% to $41.35 per barrel.

On the corporate front, Randgold Resources rallied as investors sought a safe haven following the Brussels attacks.

Wolseley jumped as the plumbing and heating products group stressed the resilience of its first-half performance, lifting the dividend 10%.

Sports Direct plunged after founder Mike Ashley said the company was not trading well. Ashley told The Times he was concerned that the sportswear retailer was losing momentum and said he would refuse to appear before a Commons select committee in June.

IG Group gained after posting an 18% rise in third-quarter revenue and saying it was entering the fourth quarter in a strong position.

Bellway advanced as it reported a 42.6% jump in pre-tax profit for the six months to the end of January.

Market Movers

FTSE 100 (UKX) 6,192.74 0.13%
FTSE 250 (MCX) 16,896.53 0.20%
techMARK (TASX) 3,105.10 0.89%

FTSE 100 - Risers

Johnson Matthey (JMAT) 2,676.00p 2.96%
Shire Plc (SHP) 3,942.00p 2.60%
Paddy Power Betfair (PPB) 9,240.00p 2.38%
Provident Financial (PFG) 3,027.00p 2.23%
Tesco (TSCO) 201.65p 2.13%
3i Group (III) 457.50p 2.05%
Old Mutual (OML) 196.80p 1.92%
DCC (DCC) 5,985.00p 1.70%
Wolseley (WOS) 3,928.00p 1.66%
Randgold Resources Ltd. (RRS) 6,540.00p 1.63%

FTSE 100 - Fallers

TUI AG Reg Shs (DI) (TUI) 974.50p -2.84%
Standard Life (SL.) 360.60p -2.36%
Capita (CPI) 1,023.00p -2.29%
Barclays (BARC) 157.20p -2.06%
InterContinental Hotels Group (IHG) 2,764.00p -1.81%
Merlin Entertainments (MERL) 450.90p -1.68%
Land Securities Group (LAND) 1,080.00p -1.64%
Dixons Carphone (DC.) 431.30p -1.53%
International Consolidated Airlines Group SA (CDI) (IAG) 549.50p -1.52%
Carnival (CCL) 3,462.00p -1.42%

FTSE 250 - Risers

IG Group Holdings (IGG) 803.00p 6.29%
Allied Minds (ALM) 450.50p 5.23%
Micro Focus International (MCRO) 1,537.00p 4.84%
Worldwide Healthcare Trust (WWH) 1,720.00p 3.61%
Woodford Patient Capital Trust (WPCT) 91.55p 3.45%
Bellway (BWY) 2,555.00p 3.32%
Acacia Mining (ACA) 278.60p 3.19%
Drax Group (DRX) 275.20p 3.03%
Supergroup (SGP) 1,466.00p 2.73%
Fidessa Group (FDSA) 2,378.00p 2.50%

FTSE 250 - Fallers

Sports Direct International (SPD) 378.80p -10.62%
Thomas Cook Group (TCG) 88.55p -4.27%
Evraz (EVR) 87.40p -3.96%
Sophos Group (SOPH) 220.20p -3.42%
Euromoney Institutional Investor (ERM) 876.50p -3.15%
Telecom Plus (TEP) 907.00p -2.79%
Dechra Pharmaceuticals (DPH) 1,196.00p -2.37%
Pets at Home Group (PETS) 273.40p -2.36%
G4S (GFS) 188.80p -2.33%
Pendragon (PDG) 35.30p -2.32%