London midday: FTSE maintains gains ahead of US inflation reading

London stocks were still a little firmer by midday on Friday, having taken their opening cues from an upbeat session on Wall Street, as investors eyed a key US inflation reading and mulled a better-than-expected consumer confidence survey.

The FTSE 100 was up 0.2% at 7,925.43.

Investors were looking ahead to US personal consumption expenditure figures for January due at 1330 GMT.

On home shores, meanwhile, the latest survey from GfK showed that consumer confidence rebounded from historic lows in February.

GfK’s long-running consumer confidence index rose seven points to -38, with all five confidence measures up. This was the highest level since April 2022 and ahead of analysts’ expectations for a reading of -43, but GfK said the measure remains "severely depressed".

The index measuring changes in personal finances during the last 12 months was five points higher at -26, while the index for personal finances over the next year was up nine points at -18.

The measure for the general economic situation of the country in the last year was six points higher at -65, while the same index but for the next 12 months rose 11 points to -43.

The major purchase index ticked up three points to -37 and the savings index - which measures how likely people are to save - increased five points to +19. This index is not included in the overall GfK measure.

Joe Staton, client strategy director at GfK, said: "Despite widely reported headwinds of inflation continuing to outstrip wage rises, and the ongoing household challenge from the cost-of-living crisis, consumers have suddenly shown more optimism about the state of their personal finances and the general economic situation, especially for the coming year.

"While it's too early to talk about ‘green shoots of recovery’, the uptick across all measures should be welcomed. But what’s happening? Are people simply fed up with hearing bad news? Do they see a milder recession than the pundits predicted? Do they sense the most worrying phase of the energy crisis is over? The headline consumer confidence score is still severely depressed and the mood as well as the economy remain a long way off pre-lockdown levels, but a little consumer resilience might be what we need to soften any downturn in 2023.

"However, many challenges remain and this may be nothing more than a bubble of hope – and bubbles always burst."

In equity markets, British Airways owner IAG flew lower despite saying it swung to a full-year profit as international travel recovered from the Covid pandemic. The company also said it had agreed to buy out the 80% of Air Europa it does not own for €400m in a move to turn Madrid into a major airport hub.

The group, which also owns Iberia and Aer Lingus, reported an operating profit of €1.25bn in 2022 as Covid travel restrictions were lifted, compared with a loss of €2.7bn a year earlier.

Jupiter Fund Management surged despite reporting a slump in both assets under management and profits after a "difficult" year for the City fund manager.

Broker Peel Hunt said the final results were "significantly better than expected, including surprisingly positive flows in the second half".

Jupiter posted a drop in underling pre-tax profit to £77.6m from £216.7m, but Peel said this was ahead of its estimate and consensus expectations of £63m.

Outside the FTSE 350, Cineworld tumbled after saying it had received non-binding proposals for some or all of the group’s businesses but that none of these included an all-cash bid for the entire business and any sale will not provide recovery for shareholders.

Market Movers

FTSE 100 (UKX) 7,925.43 0.22%
FTSE 250 (MCX) 19,851.44 0.31%
techMARK (TASX) 4,650.21 0.38%

FTSE 100 - Risers

M&G (MNG) 215.70p 9.22%
Rolls-Royce Holdings (RR.) 139.68p 4.94%
Frasers Group (FRAS) 802.00p 2.23%
BAE Systems (BA.) 919.00p 1.91%
Centrica (CNA) 104.35p 1.80%
Mondi (MNDI) 1,430.50p 1.71%
Smurfit Kappa Group (CDI) (SKG) 3,095.00p 1.54%
Kingfisher (KGF) 271.80p 1.53%
Spirax-Sarco Engineering (SPX) 12,095.00p 1.51%
Phoenix Group Holdings (PHNX) 632.00p 1.51%

FTSE 100 - Fallers

International Consolidated Airlines Group SA (CDI) (IAG) 156.28p -5.54%
Anglo American (AAL) 2,907.00p -3.41%
Flutter Entertainment (CDI) (FLTR) 13,505.00p -3.02%
Ocado Group (OCDO) 624.40p -2.16%
Rio Tinto (RIO) 5,736.00p -1.71%
Burberry Group (BRBY) 2,436.00p -1.50%
Entain (ENT) 1,337.00p -1.33%
NATWEST GROUP (NWG) 282.00p -1.05%
Prudential (PRU) 1,231.00p -0.65%
Barclays (BARC) 171.52p -0.63%

FTSE 250 - Risers

Jupiter Fund Management (JUP) 150.20p 12.01%
Hunting (HTG) 340.00p 5.59%
Quilter (QLT) 98.18p 3.96%
PureTech Health (PRTC) 223.50p 3.00%
Spectris (SXS) 3,454.00p 2.64%
Babcock International Group (BAB) 335.00p 2.57%
Vesuvius (VSVS) 405.20p 2.17%
Balanced Commercial Property Trust Limited (BCPT) 86.50p 2.00%
FirstGroup (FGP) 102.00p 2.00%
IMI (IMI) 1,565.00p 1.95%

FTSE 250 - Fallers

TUI AG Reg Shs (DI) (TUI) 1,545.20p -5.38%
Domino's Pizza Group (DOM) 280.80p -2.43%
4Imprint Group (FOUR) 4,390.00p -1.90%
W.A.G Payment Solutions (WPS) 74.30p -1.85%
Investec (INVP) 527.00p -1.72%
Kainos Group (KNOS) 1,372.00p -1.58%
Wizz Air Holdings (WIZZ) 2,575.00p -1.42%
easyJet (EZJ) 482.20p -1.39%
Network International Holdings (NETW) 275.60p -1.36%
Future (FUTR) 1,409.00p -1.33%