London midday: FTSE 100 on track for another record as stocks rise

London's FTSE 100 was on set for its second record in as many days on Tuesday, as easing concerns about the Middle East and a weaker pound gave market sentiment a boost.

The FTSE 100 was up 0.6% at 8,067.61, having touched a new all-time intraday high of 8,076.52 earlier in the session, with retailers Associated British Foods and JD Sports providing a big lift.

The index had reached a new record closing high of 8,023.87 on Monday, which topped the previous peak of 8,012.53 set in February 2023, after four consecutive days in positive territory.

UK stocks have been lifted by a falling GBP-USD rate over the past week on hopes that the Bank of England will soon start to cut interest rates as inflation begins to drop sharply; while projections for rate cuts by the Federal Reserve continue to be pushed back which has supported the dollar.

"This positive showing is exactly what’s needed to help repair the reputation of the UK stock market. It’s going to be a slow process but every little helps,” says Russ Mould, investment director at AJ Bell.

"The UK has lived in the shadows of the US stock market for the past decade or more, delivering inferior returns on a relative basis as it has lacked the go-go growth stocks highly desired by investors. The FTSE’s low exposure to the technology sector has diminished the index’s appeal and seen investors look elsewhere for ways to turbocharge their portfolio."

The first of the Magnificent Seven tech group, Tesla, reports its earnings later on Tuesday, along with a host of other American blue chips, such as GE Aerospace, General Motors, UPS, Spotify, Visa and Lockheed Martin.

Macro data

In economic data, UK government borrowing overshot forecasts in March, producing a budget deficit that was £6.6bn higher than expected. Public sector net borrowing, excluding state-controlled banks, came in at £12bn in March, the Office for National Statistics said. This was above expectations of around £10bn.

Elsewhere, the HCOB Flash composite purchasing managers' index (PMI) for the eurozone beat forecasts as continued strength in the services sectors outweighed weakness in manufacturing. The eurozone PMI rose to 51.4 in April from 50.3 in March, beating the 50.8 forecast.

PMIs are also expected from the UK and US later on, which will be widely followed, along with speeches from Bank of England members Jonathan Haskel and Huw Pill.

AB Foods and JD Sports jump

Leading the risers on the top-tier index was Primark owner Associated British Foods, surging 10% after posting a 37% jump in interim profit as it lifted its full-year earnings outlook. Looking ahead, AB Foods said it was on track to deliver "significant" growth in both profitability and cash generation ahead of expectations at the start of this financial year.

JD Sports Fashion was also riser up 6% after announcing it was buying retailer Hibbett for $1.08bn. Headquartered in Birmingham, Alabama, Nasdaq-listed Hibbett has 1,169 stores in 36 states across the US trading under the Hibbett and City Gear fascias.

Mining stocks were dominating the fallers lists on Tuesday as a strengthening dollar eroded commodity prices. Fresnillo, Antofagasta, Anglo America and Rio Tinto were among the worst performers on the FTSE 100, while Endeavour Mining, Hochschild Mining and Centamin fell on the FTSE 250.

However, iron ore developer Ferrexpo was bucking the trend by jumping 11% – bouncing back following a big share-price fall last month – after a first-quarter production report showed a 203% in total output.

Alternative investdments trust Petershill Partners was also a high riser, surging 10% after proposing a tender offer of up to $100m at a 15% premium to Monday's closing price.

Market Movers

FTSE 100 (UKX) 8,067.61 0.55%
FTSE 250 (MCX) 19,729.39 0.66%
techMARK (TASX) 4,499.71 0.87%

FTSE 100 - Risers

Associated British Foods (ABF) 2,744.00p 9.50%
JD Sports Fashion (JD.) 125.10p 5.61%
Ocado Group (OCDO) 377.70p 5.39%
Pershing Square Holdings Ltd NPV (PSH) 4,070.00p 2.52%
Flutter Entertainment (DI) (FLTR) 15,080.00p 2.34%
InterContinental Hotels Group (IHG) 8,044.00p 2.11%
Barclays (BARC) 193.14p 2.09%
International Consolidated Airlines Group SA (CDI) (IAG) 178.80p 2.05%
Scottish Mortgage Inv Trust (SMT) 828.60p 2.04%
St James's Place (STJ) 439.40p 1.85%

FTSE 100 - Fallers

Fresnillo (FRES) 569.50p -2.98%
Antofagasta (ANTO) 2,148.00p -2.41%
Anglo American (AAL) 2,108.50p -2.38%
Mondi (MNDI) 1,502.00p -1.60%
Rio Tinto (RIO) 5,303.00p -1.54%
Glencore (GLEN) 467.90p -1.47%
Smith (DS) (SMDS) 349.80p -1.41%
Severn Trent (SVT) 2,464.00p -0.88%
United Utilities Group (UU.) 1,038.50p -0.76%
Smurfit Kappa Group (CDI) (SKG) 3,526.00p -0.68%

FTSE 250 - Risers

Ferrexpo (FXPO) 53.40p 10.79%
Petershill Partners (PHLL) 204.50p 9.95%
Trustpilot Group (TRST) 193.00p 5.70%
Watches of Switzerland Group (WOSG) 356.80p 3.48%
Jlen Environmental Assets Group Limited NPV (JLEN) 91.20p 2.93%
NCC Group (NCC) 128.40p 2.56%
OSB Group (OSB) 395.20p 2.54%
International Distributions Services (IDS) 282.40p 2.54%
Mobico Group (MCG) 55.50p 2.49%
Lancashire Holdings Limited (LRE) 595.00p 2.41%

FTSE 250 - Fallers

Jupiter Fund Management (JUP) 77.40p -4.44%
Endeavour Mining (EDV) 1,654.00p -3.84%
Hochschild Mining (HOC) 149.40p -2.35%
Centamin (DI) (CEY) 123.80p -1.75%
Hipgnosis Songs Fund Limited NPV (SONG) 101.00p -1.56%
The Global Smaller Companies Trust (GSCT) 157.00p -1.38%
Victrex plc (VCT) 1,258.00p -1.26%
Dr. Martens (DOCS) 71.45p -0.90%
BlackRock World Mining Trust (BRWM) 559.00p -0.89%
Wood Group (John) (WG.) 150.90p -0.85%