London midday: FTSE dips into the red ahead of US CPI

London stocks had dipped into the red by midday on Wednesday as investors eyed the latest US inflation reading.

The FTSE 100 was down 0.2% at 8,011.17.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said the top-flight index is "still hovering around three-month lows as concerns linger about global growth".

She added: "China’s economy continues to be a worry, with the authorities’ attempts to inject the economy with stimulus seen as underwhelming.

"The impact of a second Trump term and its implications for global trade is also being mulled over. Brent Crude is trading close to two-week lows, as investors digest OPEC’s re-assessment of demand for energy across the world next year. The hot enthusiasm which powered Wall Street higher following Trump’s re-election has cooled off. Investors are assessing the realities of governing for Trump’s second term, while the control of the House of Representatives is yet to be decided, with critical votes still being counted."

On the macro front, all eyes were on the US consumer price index for October, which is due at 1330 GMT.

Russ Mould, investment director at AJ Bell, said: "US inflation figures will be closely watched this afternoon, with expectations for the cost of living to have edged higher. The consensus is for the annual rate of inflation to move from 2.4% to 2.6%.

"Any higher could trouble the market, particularly given the incoming Trump administration raising the prospect of higher inflation through various policies."

In equity markets, Smiths Group jumped to the top of the FTSE 100 as it raised its growth and margin guidance and beefed up its share buyback programme after an "outstanding" first quarter.

Flutter Entertainment was a high riser as it lifted its full-year revenue and EBITDA guidance. Ladbrokes owner Entain also gained.

Weapons maker Babcock surged as it reported a sharp jump in half-year profits and held annual guidance as geopolitical tensions increased demand from governments for military hardware.

Just Eat Takeaway shot up after agreeing to sell US business Grubhub to Wonder Group for $650m.

On the downside, SSE reversed earlier gains even as it posted a rise in half-year earnings and said its long-standing chief executive was standing down. SSE posted adjusted operating profits of £860.2m in the six months to September end, up on last year’s £693.2m. On a reported basis, operating profit rose 40% to £902.8m.

Intermediate Capital and Experian were also weaker after results.

Market Movers

FTSE 100 (UKX) 8,011.17 -0.18%
FTSE 250 (MCX) 20,358.66 -0.34%
techMARK (TASX) 4,603.53 0.18%

FTSE 100 - Risers

Smiths Group (SMIN) 1,681.00p 10.45%
Flutter Entertainment (DI) (FLTR) 20,170.00p 4.67%
Fresnillo (FRES) 646.00p 3.69%
Standard Chartered (STAN) 943.40p 2.17%
Lloyds Banking Group (LLOY) 54.78p 1.71%
Anglo American (AAL) 2,249.00p 1.31%
Entain (ENT) 761.00p 1.25%
Barclays (BARC) 260.60p 1.20%
Antofagasta (ANTO) 1,642.00p 1.20%
Vodafone Group (VOD) 67.74p 1.07%

FTSE 100 - Fallers

Intermediate Capital Group (ICG) 2,118.00p -5.45%
Experian (EXPN) 3,703.00p -4.12%
Rightmove (RMV) 588.00p -3.23%
DCC (CDI) (DCC) 5,505.00p -2.91%
Persimmon (PSN) 1,248.50p -2.42%
3i Group (III) 3,314.00p -2.41%
Auto Trader Group (AUTO) 774.20p -2.37%
BAE Systems (BA.) 1,352.00p -2.14%
SEGRO (SGRO) 760.80p -2.06%
Land Securities Group (LAND) 573.50p -2.05%

FTSE 250 - Risers

Babcock International Group (BAB) 526.00p 5.37%
Chrysalis Investments Limited NPV (CHRY) 94.00p 5.03%
Wood Group (John) (WG.) 57.05p 4.01%
Centamin (DI) (CEY) 144.70p 2.48%
Baltic Classifieds Group (BCG) 327.50p 2.34%
Hochschild Mining (HOC) 218.50p 1.86%
Oxford Instruments (OXIG) 2,070.00p 1.72%
SSP Group (SSPG) 155.60p 1.70%
Mitie Group (MTO) 112.40p 1.63%
North Atlantic Smaller Companies Inv Trust (NAS) 3,880.00p 1.57%

FTSE 250 - Fallers

Pagegroup (PAGE) 349.80p -4.43%
Essentra (ESNT) 150.00p -3.35%
Derwent London (DLN) 2,074.00p -3.26%
Paragon Banking Group (PAG) 695.00p -3.07%
Marshalls (MSLH) 319.50p -3.03%
Close Brothers Group (CBG) 190.70p -2.70%
Pennon Group (PNN) 519.00p -2.63%
Patria Private Equity Trust (PPET) 526.00p -2.59%
Softcat (SCT) 1,637.00p -2.44%
Shaftesbury Capital (SHC) 129.50p -2.26%