London midday: Stocks drift lower as investors mull risks

UK stocks were edging just slighly lower in light trading conditions amid the US Thanksgiving Day break.

As of 1220 GMT, the FTSE 100 was down 0.12% or 8.20 points at 6,809.44. Meanwhile, oil prices were edging a little higher as investors continued to look to next week’s OPEC meeting in the hope that a production cut will be agreed.

West Texas Intermediate and Brent crude were up by 0.29% to $48.10 a barrel and $49.09, respectively. Over in bond markets, 10-year gilt yields were unchanged at 1.449% albeit after a sharp rise the day before.

Tony Cross, market analyst for TopTradr, said: “Activity could be a little subdued today with the US Thanksgiving holiday evidently limiting the volume of fundamentals we have on the table.”

Significantly, in its twice-yearly Financial Stability report the European Central Bank warned markets of the risk of an abrupt global market correction given rising political uncertainty.

That, the monetary authority said, posed a threat to banks, stability and economic growth.

“More volatility in the near future is likely and the potential for an abrupt reversal remains significant.

“Elevated geopolitical tensions and heightened political uncertainty amid busy electoral calendars in major advanced economies have the potential to reignite global risk aversion and to trigger a major confidence shock.”

In corporate news, Legal & General pushed up after announcing the sale of its Netherlands business to London-listed pensions firm Chesnara for €160m.

Water company Severn Trent edged higher as it posted a 10.8% jump in interim profits before interest and tax to £299.4m.

Rio Tinto nudged up after chief executive Jean-Sébastien Jacques said the mining giant can boost cash flow by $5m over the next five years by a new "productivity drive".

Shares in Domino’s Pizza were looking tasty after it increased its long-term target for expanding its UK store presence and reiterated its guidance for 2016 pre-tax profit.

Pub operator Marston’s advanced as it said pre-tax profit and revenue for the year to 1 October grew.

On the downside, Countrywide tumbled as it issued its second profit warning this year, saying core earnings for 2016 would take a hit as a result of the UK’s vote to leave the European Union. The stock had already fallen sharply on Wednesday after Chancellor Philip Hammond unveiled a clampdown on estate agent lettings fees.

Pets at Home fell despite reporting a rise in first-half pre-tax profit and revenues and lifting its interim dividend.

HSS Hire was sharply lower as it said it now expects earnings before interest, taxes and amortisation for the year to be above the prior year but below market views.

Market Movers

FTSE 100 (UKX) 6,803.85 -0.20%
FTSE 250 (MCX) 17,561.87 -0.34%
techMARK (TASX) 3,279.88 0.08%

FTSE 100 - Risers

Direct Line Insurance Group (DLG) 361.30p 3.70%
Ashtead Group (AHT) 1,486.00p 1.78%
Antofagasta (ANTO) 713.00p 1.71%
Merlin Entertainments (MERL) 436.50p 1.44%
Pearson (PSON) 782.50p 1.10%
Rolls-Royce Holdings (RR.) 677.00p 0.97%
Intertek Group (ITRK) 3,210.00p 0.94%
Hikma Pharmaceuticals (HIK) 1,685.00p 0.84%
3i Group (III) 671.00p 0.83%
Prudential (PRU) 1,551.00p 0.65%

FTSE 100 - Fallers

National Grid (NG.) 910.00p -2.33%
Babcock International Group (BAB) 937.50p -1.94%
DCC (DCC) 6,210.00p -1.82%
Travis Perkins (TPK) 1,401.00p -1.62%
Severn Trent (SVT) 2,205.00p -1.25%
BHP Billiton (BLT) 1,346.00p -1.25%
Johnson Matthey (JMAT) 3,184.00p -1.24%
Vodafone Group (VOD) 198.25p -1.17%
Standard Chartered (STAN) 635.00p -1.06%
Carnival (CCL) 4,093.00p -1.04%

FTSE 250 - Risers

Domino's Pizza Group (DOM) 341.20p 3.43%
Cobham (COB) 167.10p 2.64%
Rank Group (RNK) 206.50p 2.63%
Big Yellow Group (BYG) 670.00p 2.29%
Mitie Group (MTO) 205.80p 2.13%
Thomas Cook Group (TCG) 80.50p 1.90%
Marshalls (MSLH) 294.40p 1.62%
Tullett Prebon (TLPR) 427.40p 1.52%
LondonMetric Property (LMP) 145.00p 1.47%
Meggitt (MGGT) 469.90p 1.45%

FTSE 250 - Fallers

Countrywide (CWD) 171.00p -11.81%
Pets at Home Group (PETS) 215.00p -7.92%
TalkTalk Telecom Group (TALK) 153.50p -5.25%
UDG Healthcare Public Limited Company (UDG) 629.50p -4.40%
Paragon Group Of Companies (PAG) 355.10p -4.16%
Hochschild Mining (HOC) 205.30p -4.02%
Mitchells & Butlers (MAB) 246.10p -3.98%
Evraz (EVR) 261.90p -3.36%
Tate & Lyle (TATE) 672.50p -3.03%
Rightmove (RMV) 3,786.00p -2.97%