London midday: FTSE stays up as Compass, Unilever gain

London stocks were still in the black by midday on Tuesday, bucking the broader trend as well-received updates from the likes of Compass and Unilever helped to underpin the mood.

The FTSE 100 was 0.5% firmer at 7,340.88, with the US Federal Reserve’s two-day policy meeting set to kick off later.

Russ Mould, investment director at AJ Bell, said: "The FTSE 100 made some modest progress on Tuesday morning as earnings reports on both sides of the Atlantic turn from a trickle to a flood.

"Some really big hitters report in the US later today, including Coca-Cola, McDonalds as well as Microsoft and Alphabet.

"These could really define an earnings season which, up until now, has been pretty resilient given the backdrop.

"Another defining moment this week comes with tomorrow’s decision on US interest rates. How hard will the US Federal Reserve push - will it serve up another 75 basis point rise as is widely expected? Or will it dial back a touch?"

On home shores, the latest survey from the Confederation of British Industry showed retail sales continued to fall in the year to July, albeit it at a more modest pace, as the cost-of-living crisis takes its toll.

The CBI's retail sales balance came in at -4 compared to -5 in June, while the balance of expectations for July declined to -14 from -2 the month before - the lowest level since March 2021.

CBI principal economist Martin Sartorius: "Retail activity continues to take a hit as consumers struggle to cope with the effects of the cost-of-living crisis.

"For wholesalers, high inflation and weakening economic momentum has meant that sales volumes have now fallen following a solid period of growth stretching back to March 2021.

"The Government needs to act to inspire business confidence and stimulate growth. Fundamentally reforming both business rates and the apprenticeship levy are crucial starting points to encourage investment, which will play a key role in improving living standards in the long-term."

In equity markets, oil giants Shell and BP gushed higher amid stronger oil prices, while miners also advanced in tandem with metals prices, with Antofagasta, Anglo American, Rio and Glencore all up.

Catering group Compass rallied as it said underlying revenues had more than doubled in the three months ended 30 June, with all three of its trading regions operating above 2019 levels.

Consumer goods giant Unilever rose after it reported 8.1% growth in first-half underlying sales as it lifted prices to tackle higher costs, and raised it sales growth guidance for the year.

Budget airline easyJet flew higher after saying it currently fourth-quarter capacity to be around 90% of pre-Covid pandemic levels with load factors above 90% as it narrowed third-quarter losses.

Renewable power generator Drax was up after it backed its full-year expectations and posted better-than-expected first-half profits.

On the downside, B&Q owner Kingfisher tumbled after Wickes downgraded its full-year adjusted pre-tax profit expectations, sending shares in the retailer down more than 20%.

Market Movers

FTSE 100 (UKX) 7,340.88 0.47%
FTSE 250 (MCX) 19,713.56 -0.45%
techMARK (TASX) 4,374.85 -0.12%

FTSE 100 - Risers

Compass Group (CPG) 1,888.50p 2.36%
Harbour Energy (HBR) 350.80p 2.24%
Unilever (ULVR) 3,998.50p 2.09%
Centrica (CNA) 90.26p 2.06%
Admiral Group (ADM) 1,772.00p 2.04%
Shell (SHEL) 2,110.50p 2.01%
Glencore (GLEN) 440.50p 1.78%
Antofagasta (ANTO) 1,094.00p 1.77%
BP (BP.) 393.30p 1.71%
London Stock Exchange Group (LSEG) 7,928.00p 1.48%

FTSE 100 - Fallers

Kingfisher (KGF) 250.30p -6.64%
JD Sports Fashion (JD.) 132.75p -4.43%
Howden Joinery Group (HWDN) 628.80p -3.88%
Bunzl (BNZL) 2,941.00p -2.58%
Sainsbury (J) (SBRY) 216.20p -2.26%
St James's Place (STJ) 1,159.50p -2.23%
RS Group (RS1) 967.00p -2.18%
B&M European Value Retail S.A. (DI) (BME) 412.50p -2.00%
3i Group (III) 1,204.00p -1.87%
Next (NXT) 6,548.00p -1.77%

FTSE 250 - Risers

Bridgepoint Group (Reg S) (BPT) 245.20p 7.36%
Wizz Air Holdings (WIZZ) 1,996.00p 3.53%
easyJet (EZJ) 383.80p 2.68%
Sequoia Economic Infrastructure Income Fund Limited (SEQI) 88.60p 2.31%
Babcock International Group (BAB) 340.20p 2.22%
Shaftesbury (SHB) 533.50p 2.20%
Tullow Oil (TLW) 47.74p 2.18%
Capital & Counties Properties (CAPC) 149.70p 1.91%
Fidelity China Special Situations (FCSS) 256.50p 1.79%
NCC Group (NCC) 205.50p 1.73%

FTSE 250 - Fallers

Aston Martin Lagonda Global Holdings (AML) 442.70p -5.73%
Jupiter Fund Management (JUP) 126.10p -5.54%
Marks & Spencer Group (MKS) 138.50p -4.75%
Travis Perkins (TPK) 986.00p -4.60%
4Imprint Group (FOUR) 3,060.00p -4.38%
Future (FUTR) 1,828.00p -4.34%
Currys (CURY) 68.10p -4.08%
Tyman (TYMN) 266.50p -3.27%
Frasers Group (FRAS) 892.00p -3.25%
ASOS (ASC) 1,085.00p -3.21%