London midday: Stocks flat as BoE tightens its belt on lending rules

London stocks were flat on Tuesday after the Bank of England announced tightened rules for mortgage lending to landlords.

The BoE said on Tuesday that risks around Britain's 23 June referendum on its membership in the European Union could push up borrowing costs and weaken sterling.

The Bank revealed measures that will reduce the number of mortgage approvals by 10-20% over the next three years.
Banks will also need have to hold a 0.5% counter-cyclical buffer by the end of March 2017, up from a previous requirement of 0%.

In economic data, Japan saw a mixed batch of economic data including an unexpected rise in unemployment, a better-than- forecast increase in household spending and a worse-than-anticipated increase in retail trade.

Still to come, the S&P/Case-Shiller index on US house prices is due at 1400 BST and US consumer confidence is due at 1500 BST.

Investors will also watch out for a speech by Federal Reserve Chair Janet Yellen later in the day for further clues about the central bank’s next policy move, particularly after the hawkish comments last week from Fed officials.

"While the markets are currently far from convinced that the Fed will raise interest rates again at its April meeting – only 12% chance of a hike priced in based on Fed Funds futures – this could change dramatically this week," said Craig Erlam, senior market analyst at Oanda.

"Fed Chair Janet Yellen is due to speak today on the Economic Outlook and Monetary Policy at the Economic Club of New York luncheon and her comments are likely to be followed very closely, especially given the more hawkish tone we’ve had from a number of other policy makers over the last week."

Meanwhile, oil prices slumped with Brent crude down 2.1% to $39.41 per barrel and West Texas Intermediate down 1.6% to $38.73 per barrel at 1203 BST.

On the corporate front, mining stocks were the biggest fallers as metal prices slumped after a negative session in Asia.

RSA Insurance rallied after Deutsche Bank upped its target price on the stock.

EasyJet flew higher after Bank of America Merrill Lynch upgraded the stock to ‘buy’.

Shares in AG Barr edged lower after the London-listed drinks maker posted a rise in full year profit but a dip in revenue.

Market Movers

FTSE 100 (UKX) 6,108.42 0.03%
FTSE 250 (MCX) 16,705.96 0.19%
techMARK (TASX) 3,077.84 0.00%

FTSE 100 - Risers

Marks & Spencer Group (MKS) 402.30p 2.50%
Associated British Foods (ABF) 3,346.00p 2.48%
Mediclinic International (MDC) 874.00p 2.28%
Dixons Carphone (DC.) 424.90p 1.77%
Prudential (PRU) 1,297.50p 1.72%
Ashtead Group (AHT) 838.50p 1.64%
Travis Perkins (TPK) 1,791.00p 1.47%
ITV (ITV) 240.90p 1.35%
Berkeley Group Holdings (The) (BKG) 3,229.00p 1.16%
easyJet (EZJ) 1,518.00p 1.13%

FTSE 100 - Fallers

Anglo American (AAL) 487.00p -2.76%
Glencore (GLEN) 147.10p -2.71%
BHP Billiton (BLT) 758.50p -2.56%
Rio Tinto (RIO) 1,892.00p -2.35%
Randgold Resources Ltd. (RRS) 6,230.00p -2.04%
Antofagasta (ANTO) 460.70p -1.85%
Fresnillo (FRES) 906.00p -1.52%
BP (BP.) 348.25p -1.44%
Royal Mail (RMG) 469.90p -1.01%
HSBC Holdings (HSBA) 434.60p -0.84%

FTSE 250 - Risers

Aberdeen Asset Management (ADN) 261.80p 2.91%
Hikma Pharmaceuticals (HIK) 1,946.00p 2.75%
Sophos Group (SOPH) 218.50p 2.73%
Brown (N.) Group (BWNG) 328.60p 2.62%
Allied Minds (ALM) 473.20p 2.54%
Sports Direct International (SPD) 356.40p 2.41%
Debenhams (DEB) 73.95p 2.28%
Lancashire Holdings Limited (LRE) 547.00p 2.24%
Ashmore Group (ASHM) 280.30p 2.08%
Just Retirement Group (JRG) 155.10p 1.97%

FTSE 250 - Fallers

Evraz (EVR) 85.40p -6.05%
Polymetal International (POLY) 673.00p -4.40%
Ophir Energy (OPHR) 78.90p -3.78%
Vedanta Resources (VED) 311.00p -3.24%
Just Eat (JE.) 373.90p -2.71%
Acacia Mining (ACA) 262.00p -2.57%
Serco Group (SRP) 95.40p -2.35%
Worldwide Healthcare Trust (WWH) 1,685.00p -2.32%
Amec Foster Wheeler (AMFW) 436.70p -2.30%
Aldermore Group (ALD) 215.70p -2.04%