London midday: Stocks fall, sterling gains, as traders weigh UK inflation data

London stocks were sitting lower on Tuesday as investors digested mixed UK inflation data.

Headline UK inflation edged higher in July to its highest level since late 2014, lifting sterling from its lows, though core inflation slipped lower.

Data from the Office for National Statistics (ONS) showed the consumer price index (CPI) rose to 0.6% when compared to the same month last year, up from the 0.5% in June that economists expected to be maintained.

Rising petrol prices and upward moves in the prices of second hand cars, food, alcoholic beverages and hotel rooms were the main contributors to the rise in CPI.

Core CPI, which excludes more volatile prices such as fuel and food, fell to 1.3% in July from the 1.4% year-on-year rise the month before. Economists had expected no change.

The pound rose 0.75% against the dollar to $1.2976 at 1117 BST.

“The Office for National Statistics has pointed out that although CPI inflation is now at its highest level since November 2014, it is still low in historic terms,” said IG market analyst Joshua Mahony.

“The figure was slightly more than economists had expected, but it doesn’t yet move the dial for the Bank of England’s monetary policy makers, who have arguably shifted their focus to growth and jobs in the wake of the referendum result.”

The Bank of England, which is targeting 2% inflation, expects consumer prices to increase as a weaker pound post Brexit makes imports more expensive.

Next up, US inflation figures are due at 1330 BST. Economists have pencilled in an annualised 0.9% increase in July, down from 1.0% in June. On the month, consumer prices are expected to slow to 0.1% growth from 0.2% the previous month.

US housing starts figures are also scheduled for 1330 BST, followed by US industrial and manufacturing output data at 1415 BST.

On the company front, BHP Billiton rallied despite reporting a record loss in the year to the end of June and slashing its dividend as weaker commodity prices, write-downs and the dam disaster in Brazil took their toll.

Chilean copper mining colossus Antofagasta gained after it reported lower first-half revenue but said it had improved earnings and kept its dividend flat thanks to some heavy cost-cutting.

A gauge of other miners were also in the black, including Glencore, Rio Tinto and Anglo American, bolstered by rising metal prices.

International infrastructure group Balfour Beatty was a bit firmer after being awarded a $697m contract to undertake electrification of the 52-mile Caltrain rail corridor between San Francisco and San Jose, in preparation for the future operation of high speed trains.

Hochschild Mining advanced as it swung to a first half pre-tax profit of $60.3m against a loss of $43.4m loss the previous year.

AstraZeneca nudged lower after saying it has completed a licensing agreement with LEO Pharma, a specialist in dermatology care, for the global licence to monoclonal antibody tralokinumab in skin diseases.

BGEO Group, formerly Bank of Georgia Holdings, declined even as it reported a 20% increase in underlying first half profit in line with expectations.

Market Movers

FTSE 100 (UKX) 6,915.97 -0.36%
FTSE 250 (MCX) 17,968.28 0.22%
techMARK (TASX) 3,533.07 -0.54%

FTSE 100 - Risers

Antofagasta (ANTO) 553.00p 7.59%
BHP Billiton (BLT) 1,077.50p 3.36%
Anglo American (AAL) 901.40p 3.29%
Glencore (GLEN) 197.75p 2.46%
Rio Tinto (RIO) 2,490.00p 2.24%
Randgold Resources Ltd. (RRS) 8,735.00p 2.04%
Fresnillo (FRES) 2,013.00p 1.51%
Barratt Developments (BDEV) 443.00p 1.42%
Berkeley Group Holdings (The) (BKG) 2,521.00p 1.12%
Persimmon (PSN) 1,749.00p 0.92%

FTSE 100 - Fallers

easyJet (EZJ) 1,067.00p -1.84%
International Consolidated Airlines Group SA (CDI) (IAG) 395.50p -1.81%
Compass Group (CPG) 1,492.00p -1.52%
St James's Place (STJ) 965.00p -1.48%
Paddy Power Betfair (PPB) 9,655.00p -1.48%
BAE Systems (BA.) 526.00p -1.41%
Relx plc (REL) 1,451.00p -1.36%
Wolseley (WOS) 4,278.00p -1.34%
BT Group (BT.A) 391.55p -1.32%
Vodafone Group (VOD) 236.65p -1.27%

FTSE 250 - Risers

Hochschild Mining (HOC) 321.50p 9.32%
Amec Foster Wheeler (AMFW) 550.00p 6.28%
Countrywide (CWD) 247.40p 3.64%
Capital & Counties Properties (CAPC) 294.70p 3.37%
Ashmore Group (ASHM) 369.30p 3.16%
Hastings Group Holdings (HSTG) 218.50p 2.92%
Vedanta Resources (VED) 546.50p 2.92%
Petrofac Ltd. (PFC) 863.50p 2.74%
Morgan Advanced Materials (MGAM) 293.60p 2.66%
Circassia Pharmaceuticals (CIR) 99.00p 2.64%

FTSE 250 - Fallers

BGEO Group (BGEO) 2,883.00p -2.63%
JRP Group (JRP) 91.50p -2.61%
Sophos Group (SOPH) 241.60p -2.50%
G4S (GFS) 222.90p -1.94%
Spectris (SXS) 1,962.00p -1.90%
Rotork (ROR) 201.30p -1.85%
Ocado Group (OCDO) 283.90p -1.59%
Halma (HLMA) 1,077.00p -1.55%
Henderson Group (HGG) 249.00p -1.46%
William Hill (WMH) 308.20p -1.38%