London midday: Stocks flat as BoE keeps interest rates unchanged

London stocks were flat as the Bank of England voted unanimously to keep interest rates unchanged.

The BoE’s Monetary Policy Committee decided to hold rates at 0.5% for the 85th consecutive month and maintain the asset purchase programme at £375bn, as expected by economists.

The decision to stand pat on policy comes amid prolonged low inflation, political uncertainty surrounding the 23 June referendum on Britain’s European Union membership and concerns about a global economic slowdown.

Across the Atlantic, investors will be kept busy with US data including initial jobless claims at 1330 BST and inflation at 1330 BST.

Inflation figures are expected to show an improvement in March with analysts pencilling in a 1.1% year-on-year rise, compared to 1.0% in February. The Federal Reserve is monitoring consumer prices as it determines the timing of the next interest rate hike.

Meanwhile, oil prices reversed early declines as the International Energy Agency said the global oil glut was set to ease by the end of this year. It also said that any potential agreement to freeze output at the Doha meeting this weekend would have only a limited impact on supplies.

Brent crude rose 0.2% to $44.28 per barrel and West Texas Intermediate increased 0.22% to $41.91 per barrel at 1204 BST.

In company news, Burberry’s shares plunged after it warned profits for 2017 are likely to be around the bottom of the range of analysts' forecasts due to increased investment in the business and a "challenging demand environment".

Debenhams gained after the department store posted a 5.5% rise in first half profit as it confirmed the resignation of chief executive Michael Sharp.

PZ Cussons dropped after warning of difficult conditions in its main market of Nigeria in a trading update.

ITV edged higher on reports it has held takeover talks with Entertainment One, the FTSE 250-listed owner of Peppa Pig and distributor of the new David Brent film. However, Entertainment One said on Thursday that it has not received any approaches.

Market Movers

FTSE 100 (UKX) 6,362.73 -0.00%
FTSE 250 (MCX) 17,031.52 -0.10%
techMARK (TASX) 3,182.34 0.18%

FTSE 100 - Risers

Johnson Matthey (JMAT) 2,889.00p 2.27%
Compass Group (CPG) 1,278.00p 1.43%
ITV (ITV) 243.40p 1.33%
Mediclinic International (MDC) 964.00p 1.26%
AstraZeneca (AZN) 4,147.00p 1.16%
Ashtead Group (AHT) 857.50p 1.00%
Merlin Entertainments (MERL) 464.30p 0.93%
BAE Systems (BA.) 508.00p 0.79%
HSBC Holdings (HSBA) 451.30p 0.71%
GlaxoSmithKline (GSK) 1,499.50p 0.71%

FTSE 100 - Fallers

Burberry Group (BRBY) 1,259.00p -6.39%
Persimmon (PSN) 1,935.00p -4.26%
Standard Life (SL.) 346.70p -3.51%
Berkeley Group Holdings (The) (BKG) 2,987.00p -3.36%
Anglo American (AAL) 687.70p -3.05%
Randgold Resources Ltd. (RRS) 6,600.00p -2.58%
Fresnillo (FRES) 1,003.00p -2.34%
Intu Properties (INTU) 311.00p -2.20%
Antofagasta (ANTO) 459.70p -2.09%
Barratt Developments (BDEV) 532.00p -1.94%

FTSE 250 - Risers

Entertainment One Limited (ETO) 183.30p 15.57%
Hays (HAS) 135.20p 8.94%
Zoopla Property Group (WI) (ZPLA) 281.00p 6.56%
PayPoint (PAY) 860.50p 3.67%
Allied Minds (ALM) 393.60p 3.20%
Debenhams (DEB) 79.60p 2.91%
JD Sports Fashion (JD.) 1,190.00p 2.50%
Aberdeen Asset Management (ADN) 301.60p 2.24%
Rathbone Brothers (RAT) 2,081.00p 2.01%
Lancashire Holdings Limited (LRE) 553.50p 1.84%

FTSE 250 - Fallers

Circassia Pharmaceuticals (CIR) 257.60p -4.70%
JRP Group (JRP) 133.20p -3.62%
Jimmy Choo (CHOO) 126.40p -3.51%
Bovis Homes Group (BVS) 853.00p -3.18%
OneSavings Bank (OSB) 292.10p -3.15%
Crest Nicholson Holdings (CRST) 504.00p -2.80%
Virgin Money Holdings (UK) (VM.) 346.50p -2.78%
McCarthy & Stone (MCS) 267.50p -2.62%
Ted Baker (TED) 2,560.00p -2.40%
Acacia Mining (ACA) 292.10p -2.34%