London midday: FTSE ticks higher ahead of Spring Statement

London stocks were a little firmer just before midday on Wednesday ahead of the Spring Statement, as investors mulled the latest UK inflation data.

The FTSE 100 was up 0.2% at 7,489.89, while sterling was down 0.4% against the dollar at 1.3203.

Figures released earlier by the Office for National Statistics showed that inflation hit a new 30-year high in February as the cost of living crisis intensified.

In the 12 months to February, consumer prices rose by 6.2% amid surging energy and fuel costs, up from 5.5% in January and marking the highest inflation reading since March 1992. Analysts had been expecting 6%.

On a month-on-month basis, prices were up 0.8%, which was the biggest monthly CPI jump between January and February since 2009.

Meanwhile, the retail price index came in at 31-year high of 8.2%.

The latest inflation reading comes ahead of Chancellor Rishi Sunak’s Spring Statement, in which he is expected to cut fuel duty by 5p a litre and raise the threshold for national insurance.

Russ Mould, investment director at AJ Bell, said: "The FTSE 100 has a spring in its step despite the UK inflation rate going up again, and a potential cut in the country’s economic outlook when Chancellor Rishi Sunak announces his mini-Budget at lunchtime.

"Headwinds for consumers and businesses linked to the rising cost of energy, raw materials and more would suggest the Office for Budget Responsibility will downgrade its forecasts for GDP growth this year.

"Shares in retail companies have been weak in recent months as investors speculate there could be a sharp drop in consumer spending once the energy price cap goes up in April. Any measures by Sunak to help with the cost-of-living crisis could trigger a relief rally in the retail sector on the stock market.

"It feels as if investor confidence is starting to improve following a big wobble in recent weeks linked to the shock of the Ukraine crisis and how inflationary pressures have intensified around the world. CNN’s Fear & Greed Index has gone from a reading of 19 a week ago, classified as ‘extreme fear’ to now sitting at 44 which is still in ‘fear’ territory but getting very close to neutral."

In equity markets, oil giants BP and Shell gushed higher as oil prices rallied.

BP was also in focus after it announced a partnership with Japan's Marubeni to explore an offshore wind development opportunity, potentially putting the energy outfit further on track to meet its target in the renewables space. There shares got an added boost from an upgrade to ‘overweight’ at Morgan Stanley.

Elsewhere, Watches of Switzerland gained after an initiation at ‘buy’ at Societe Generale.

Safety equipment company Halma traded up after saying it had made "good progress" so far in the second half of its trading year.

On the downside, Reckitt was under the cosh after a downgrade to ‘underperform’ at Jefferies, while Beazley fell after a downgrade to ‘hold’ at HSBC.

Market Movers

FTSE 100 (UKX) 7,489.89 0.18%
FTSE 250 (MCX) 20,990.44 -0.58%
techMARK (TASX) 4,343.16 -0.20%

FTSE 100 - Risers

BP (BP.) 384.15p 3.46%
Shell (SHEL) 2,067.00p 2.96%
Electrocomponents (ECM) 1,060.00p 2.81%
Endeavour Mining (EDV) 1,910.00p 2.41%
BAE Systems (BA.) 745.60p 1.19%
Antofagasta (ANTO) 1,771.00p 1.06%
Sainsbury (J) (SBRY) 261.40p 1.04%
Rio Tinto (RIO) 5,768.00p 1.03%
Halma (HLMA) 2,539.00p 0.91%
Airtel Africa (AAF) 151.10p 0.87%

FTSE 100 - Fallers

Persimmon (PSN) 2,211.00p -3.15%
Reckitt Benckiser Group (RKT) 5,705.00p -2.99%
Kingfisher (KGF) 265.80p -2.60%
Barratt Developments (BDEV) 545.60p -2.50%
Royal Mail (RMG) 362.00p -2.40%
Taylor Wimpey (TW.) 141.05p -2.22%
WPP (WPP) 1,052.00p -1.87%
Intermediate Capital Group (ICP) 1,686.50p -1.83%
Berkeley Group Holdings (The) (BKG) 4,030.00p -1.76%
CRH (CDI) (CRH) 3,251.00p -1.72%

FTSE 250 - Risers

TP Icap Group (TCAP) 137.40p 3.08%
Harbour Energy (HBR) 464.00p 2.93%
Tullow Oil (TLW) 52.38p 2.83%
Energean (ENOG) 1,117.00p 2.76%
PureTech Health (PRTC) 210.00p 2.69%
Baltic Classifieds Group (BCG) 137.50p 2.61%
FDM Group (Holdings) (FDM) 1,026.00p 2.60%
Trustpilot Group (TRST) 140.60p 2.03%
Oxford Instruments (OXIG) 2,145.00p 1.90%
Baillie Gifford Japan Trust (BGFD) 823.00p 1.48%

FTSE 250 - Fallers

Auction Technology Group (ATG) 954.00p -5.73%
Moonpig Group (MOON) 217.60p -4.56%
Jupiter Fund Management (JUP) 204.60p -3.67%
Ashmore Group (ASHM) 230.20p -3.60%
Essentra (ESNT) 303.50p -3.50%
Dr. Martens (DOCS) 231.80p -3.26%
Aston Martin Lagonda Global Holdings (AML) 917.00p -3.05%
Wizz Air Holdings (WIZZ) 2,557.00p -2.96%
RHI Magnesita N.V. (DI) (RHIM) 2,518.00p -2.93%
Vistry Group (VTY) 1,017.50p -2.86%