London midday: FTSE touch lower after data deluge; HSBC pops higher
London stocks were still a touch lower by midday on Tuesday as investors sifted through a raft of UK data and results from the likes of HSBC and InterContinental Hotels.
The FTSE 100 was down 0.1% at 8,002.73.
Data released earlier by the Office for National Statistics showed the UK government unexpectedly recorded a budget surplus in January as self-assessment income tax receipts surged.
The Treasury recorded a surplus of £5.4bn borrowing, versus consensus expectations for a £7.8bn deficit. This was down £7.1bn compared to January 2022.
The Office for Budget Responsibility had been expecting a £0.4bn surplus.
Self-assessment income tax receipts hit a record of £21.9bn - the highest January figure since monthly records began in April 1999 and up £5.5bn on January 2022.
Ruth Gregory, deputy chief UK economist at Capital Economics, said: "January’s public finances figures suggest the Chancellor may have scope for some giveaways in his Budget on 15th March.
"But with the OBR poised to slash its medium-term economic growth forecasts, any hopes the Chancellor might be able to give away a significant amount of money, while sticking to his previous debt-reduction plans, may be disappointed."
Market participants were also mulling over a survey showing that the private sector returned to growth in February.
The S&P Global CIPS flash PMI composite output index rose to 53.0 from 48.5 in January, hitting an eight-month high and coming in above the 50.0 mark that separates contraction from expansion for the first time since July 2022. Economists had forecast a reading of 49.0.
The flash services PMI business activity index came in at 53.3 in February, up from 48.7 the month before and also an eight-month high. Economists had been expecting a reading of 49.2.
Meanwhile, the manufacturing PMI pushed up to 49.2 from 47.0, hitting a seven-month high and above expectations of 47.5.
Survey respondents cited rising customer demand and improving business confidence in February, due to lower economic uncertainty, fewer supply shortages and falling inflation.
Finally, the latest survey from the Confederation of British Industry showed manufacturing output fell in February at the fastest pace since September 2020.
The CBI’s gauge of factory output for the three months to February fell to -16 from -1 the month before. Meanwhile, the balance of total news order ticked up to -16 from -17, but remained very much in negative territory.
In equity markets, InterContinental Hotels fell despite reporting a jump in annual profits and announcing a $750m share buyback as travel continued to rebound from the Covid pandemic.
Chilean miner Antofagasta was weaker after it posted a drop in full-year profits and revenue as operating costs rose and prices fell.
Wizz Air flew sharply lower after a double-downgrade to ‘underweight’ at Barclays, while Moneysupermarket was hit by a downgrade to ‘add’ at Numis.
On the upside, Smith & Nephew was the top gainer on the FTSE 100 even as it posted a slump in operating profits.
HSBC reversed earlier losses to trade up, as it unveiled a special dividend and said quarterly profits almost doubled, driven by the rise in global interest rates, but struck a cautious note on the outlook.
Currys gained after an upgrade to ‘reduce’ at Numis.
Market Movers
FTSE 100 (UKX) 8,002.73 -0.14%
FTSE 250 (MCX) 19,977.86 -0.60%
techMARK (TASX) 4,658.80 0.27%
FTSE 100 - Risers
Smith & Nephew (SN.) 1,219.00p 4.95%
HSBC Holdings (HSBA) 638.80p 2.92%
BAE Systems (BA.) 905.80p 1.84%
JD Sports Fashion (JD.) 181.45p 1.09%
National Grid (NG.) 1,082.00p 1.07%
Frasers Group (FRAS) 802.50p 1.07%
Beazley (BEZ) 692.00p 1.02%
Compass Group (CPG) 1,924.50p 0.81%
Haleon (HLN) 336.50p 0.76%
Relx plc (REL) 2,503.00p 0.72%
FTSE 100 - Fallers
Anglo American (AAL) 3,207.00p -3.91%
Hargreaves Lansdown (HL.) 844.00p -3.01%
Prudential (PRU) 1,266.50p -2.35%
Ocado Group (OCDO) 615.00p -2.26%
Abrdn (ABDN) 210.30p -2.19%
Antofagasta (ANTO) 1,723.50p -2.13%
Endeavour Mining (EDV) 1,775.00p -2.04%
Johnson Matthey (JMAT) 2,182.00p -1.98%
BT Group (BT.A) 139.60p -1.93%
Glencore (GLEN) 510.10p -1.85%
FTSE 250 - Risers
Currys (CURY) 77.55p 3.54%
Darktrace (DARK) 278.30p 2.28%
QinetiQ Group (QQ.) 351.80p 1.56%
Spire Healthcare Group (SPI) 243.00p 1.25%
Watches of Switzerland Group (WOSG) 884.00p 1.14%
The Renewables Infrastructure Group Limited (TRIG) 130.40p 1.09%
Hikma Pharmaceuticals (HIK) 1,787.50p 1.07%
Spectris (SXS) 3,143.00p 1.00%
Domino's Pizza Group (DOM) 314.40p 0.96%
HGCapital Trust (HGT) 373.50p 0.95%
FTSE 250 - Fallers
Wizz Air Holdings (WIZZ) 2,566.00p -4.15%
Moneysupermarket.com Group (MONY) 225.00p -3.85%
Aston Martin Lagonda Global Holdings (AML) 190.05p -3.65%
RHI Magnesita N.V. (DI) (RHIM) 2,636.00p -3.44%
Molten Ventures (GROW) 388.40p -3.38%
Jupiter Fund Management (JUP) 139.20p -3.06%
Close Brothers Group (CBG) 973.00p -2.80%
Sirius Real Estate Ltd. (SRE) 83.70p -2.56%
International Distributions Services (IDS) 228.90p -2.43%
Rathbones Group (RAT) 2,095.00p -2.33%