London midday: Stocks flat as investors weigh data

London stocks had erased early gains by midday as investors weighed a sharp drop in monthly UK industrial orders against better-than-expected Eurozone services and manufacturing data.

The FTSE rose 0.03% to 7,022.88 points while the pound increased 0.02% to $1.2237.

The Confederation of British Industry's monthly industrial orders balance fell to -17 in October from -5 in September, well below the consensus of -5. However, CBI said manufacturing output and orders grew in the last quarter.

“Manufacturers’ are optimistic about export prospects and export orders are growing, following the fall in sterling," said CBI's chief economist Rain Newton-Smith.

“However, the weaker pound is also feeding through to costs, which are rising briskly and may well spill over into higher consumer prices in the months ahead."

IHS Markit’s flash eurozone composite purchasing mangers’ index jumped to 53.7 in October from 52.6 in September, ahead of forecasts of 52.8 and above the 50 level that separates an expansion from a contraction.

The manufacturing PMI rose to 53.5 in October from 52.6 a month earlier, beating expectations of 52.7. The services PMI climbed to 53.5 from 52.5, compared to an estimated 52.4.

“Particularly impressive data came from the manufacturing sector which seems to have staged an unlikely comeback, with eurozone, French and German manufacturing PMIs all hitting 2016 highs,” said IG’s Joshua Mahony.

“Coming at a time when the euro is tumbling back to a seven-month low, it is clear that producers are enjoying somewhat of a renaissance following a period of uncertainty.”

Japan’s manufacturing PMI also rose to 51.7 in October from 50.4 in September.

The US manufacturing PMI is due at 1445 BST.

Meanwhile, oil prices fell as Iraqi oil minister Ali al-Luaibi said the nation wanted to be exempt from an OPEC deal to cut production. However, losses were capped by Iran's deputy oil minister Amir Hossein Zamaninia saying Tehran would encourage other OPEC members to join an output freeze.

Brent crude dipped 0.03% to $51.76 per barrel and West Texas Intermediate declined 0.11% to $50.79 per barrel at 1145 BST.

In company news, Petra Diamonds advanced as it reported a 30% increase in first quarter production to 1,097,523 carats.

Acacia Mining shares rose as Deutsche Bank reiterated a ‘buy’ rating and lifted its target price to 580p from 570p, citing progress on the company’s turnaround.

Cobham slumped after it cut its trading profit guidance to £255-275m, including favourable currency impacts, due to softer conditions in the wireless and satellite communications markets.

Market Movers

FTSE 100 (UKX) 7,022.88 0.03%
FTSE 250 (MCX) 17,934.99 0.00%
techMARK (TASX) 3,445.08 -1.07%

FTSE 100 - Risers

Provident Financial (PFG) 3,092.00p 2.90%
easyJet (EZJ) 944.50p 2.83%
International Consolidated Airlines Group SA (CDI) (IAG) 407.90p 2.05%
ITV (ITV) 174.50p 2.05%
Schroders (SDR) 2,851.00p 1.60%
Marks & Spencer Group (MKS) 339.70p 1.58%
Antofagasta (ANTO) 526.50p 1.54%
Standard Life (SL.) 341.70p 1.48%
DCC (DCC) 6,675.00p 1.44%
London Stock Exchange Group (LSE) 2,901.00p 1.26%

FTSE 100 - Fallers

British American Tobacco (BATS) 4,570.50p -2.05%
Hikma Pharmaceuticals (HIK) 1,872.00p -1.84%
Shire Plc (SHP) 4,962.50p -1.79%
AstraZeneca (AZN) 4,882.00p -1.41%
InterContinental Hotels Group (IHG) 3,117.00p -1.36%
Burberry Group (BRBY) 1,476.00p -1.27%
Royal Bank of Scotland Group (RBS) 188.10p -1.00%
Associated British Foods (ABF) 2,498.00p -0.95%
GlaxoSmithKline (GSK) 1,646.00p -0.75%
Pearson (PSON) 770.00p -0.71%

FTSE 250 - Risers

Petra Diamonds Ltd.(DI) (PDL) 147.40p 5.44%
B&M European Value Retail S.A. (DI) (BME) 247.50p 3.77%
Senior (SNR) 179.00p 2.58%
CYBG (CYBG) 276.70p 2.14%
Rathbone Brothers (RAT) 1,842.00p 2.05%
Wizz Air Holdings (WIZZ) 1,533.00p 2.00%
Acacia Mining (ACA) 539.50p 1.98%
Tullow Oil (TLW) 292.90p 1.88%
Laird (LRD) 171.20p 1.84%
JRP Group (JRP) 125.70p 1.78%

FTSE 250 - Fallers

Cobham (COB) 133.00p -17.19%
Countryside Properties (CSP) 234.80p -2.69%
Hunting (HTG) 526.50p -2.32%
Inmarsat (ISAT) 680.00p -2.16%
Berkeley Group Holdings (The) (BKG) 2,402.00p -2.08%
Countrywide (CWD) 200.90p -1.86%
AO World (AO.) 172.50p -1.77%
Daejan Holdings (DJAN) 5,600.00p -1.50%
NCC Group (NCC) 215.90p -1.42%
Wetherspoon (J.D.) (JDW) 887.00p -1.39%