London midday: Stocks higher amid conflicting headlines out of G7

Britain's top flight index was still in positive territory come midday, despite the conflicting headlines on Japan's intentions regarding a possible postponement of tax hikes and the likelihood of intervention in foreign exchange markets against the US dollar.

At Thursday's meeting of G7 finance ministers and central bank governors in Japan, prime minister Shinzo Abe invoked the need for an appropriate policy response in order to avoid another crisis on the scale of what occurred in the wake of the Lehman Brothers crash in 2008.

However, in parallel different reports cited conflicting remarks from at least two officials regarding the possibility that a consumption tax hike due to come into effect in April 2017 might be delayed.

A short-lived spike in the value of the yen, amid thin trading conditions, seemed to leave many traders scratching their heads as to the reasons behind the sudden volatility but was a testament to how frayed investors´ nerves were.

As of 11:51 BST the FTSE 100 was standing 0.25% up on the day or 15.79 points higher at 6,278.65, with the domestic-facing FTSE 250 edging up by 0.03% or 4.79 points at 17,237.46.

Real estate stocks had taken over from Big Oil and grocers next to miners at the top of the leaderboard as the latest Brexit poll results continued to roll-in.

Front month Brent crude futures were 0.88% higher at $50.18 per barrel on the ICE with cable off by 0.03% to 1.4690.

In parallel, dollar/yen was off 0.18% to 109.98, after hitting an intra-day low of 109.69.

Speeches from two Fed speakers later in the day were eagerly awaited, especially that from Fed Governor Jerome Powell who was scheduled to speak on the economy at the Peterson Institute in Washington DC, at 17:00 BST. Fed chair Janet Yellen was also set to deliver a speech on Friday, adding to traders´ caution.

Overnight, the president of the Federal Reserve bank of Dallas, Robert Kaplan, argued in favour of a rate hike "in the near future" but not necessarily at its mid-June meeting, so long as the economy evolved as expected.

He also said the risk of Brexit would be "a factor" at the Fed's 15 June policy meeting and noted the risk of a 'sell-off' in the pound should the UK opt to leave the European Union.

On that note, the results of the latest Ashcroft poll showed that 65% of those surveyed expected the 'Remain' camp to prevail versus the 35% who expected the opposite result.

Similarly, the results of the latest BMG Research poll, which was conducted on-line, revealed a small up-tick in the proportion of respondents who said they were backing the 'Remain' option, which rose by one percentage point to 44%.

Referendum anxiety takes its toll on investment

Uncertainty surrounding the 23 June referendum sent business investment in the UK 0.5% lower in the first three months of 2016, contributing to a slowdown in the economy from the 0.6% quarter-on-quarter pace seen in the final three months of 2015 to 0.4%, a second estimate from the Office for National Statistics revealed, bang in-line with estimates and the preliminary estimate.

The Confederation of British Industry's gauge of service sector firm confidence fell to its lowest mark in more than three years over the three months to May.

Gross mortgage borrowing in the UK was at £12bn in April, for a 12% rise versus a year ago, following March's spike in activity as borrowers raced to complete purchases ahead of the increase in Stamp Duty, according to the BBA.

A raft of companies went ex-dividend on Thursday, including Carnival, DCC, Whitbread, Amec Foster Wheeler and Inchcape.

Tate&Lyle in sweet spot

Full year pre-tax profits at Tate & Lyle soared to £126m from 25m as revenues rose 1% to £2.35bn. Adjusted profit before tax was £67m higher at £193 largely as a result of net exceptional costs in the year of £50m.

United Utilities saw underlying profits drop 9% over the twelve months ending on 31 March to reach £604.1m, even as revenues edged up from £1,720.2m to £1,730m. The company declared a final dividend of 25.64p per share, taking the total for the year to 38.45p, for an increase of 2% - in line with its payout policy.

Six international oil firms including BP and Royal Dutch Shell Plc have tabled bids to operate Qatar's biggest offshore oil field, Reuters reported, citing two people familiar with the matter.

Pets at Home reported an increase in pre-tax profit for the year as revenue grew and the company expressed confidence over its outlook. For the 53 weeks to the end of March, statutory pre-tax profit edged up to £92.1m from £90.2m on revenue of £793.1m, up from £777.8m. Meanwhile, group like-for-like revenue grew 2.1% compared with 4.2% growth in the same period last year.

FTSE 250 car dealership Inchcape said on Thursday that it has made a good star to the year, in line with its expectations. In a trading update for 1 January to 25 May, the company said group revenue rose 12.8% at actual currency to £2.47bn, or an 11.7% increase at constant currency.

Daily Mail & General Trust shares tumbled on Thursday as the company posted drop in first-half profit and warned that a weak print advertising market will hit margins in the media business.

B&M European Value Retail, the discounter chaired by Sir Terry Leahy, declared a special dividend as it posted final results showing strong sales, profits and cash generation. The FTSE 250 group, which floated almost two years ago, opened a record 79 UK stores in the UK and six Jawoll stores in Germany in the 52 weeks to 26 March, helping lift revenues increased by 23.6% to £2.04bn.

Market Movers

FTSE 100 (UKX) 6,275.93 0.21%
FTSE 250 (MCX) 17,233.68 0.01%
techMARK (TASX) 3,118.23 0.06%

FTSE 100 - Risers

BHP Billiton (BLT) 876.40p 4.68%
Antofagasta (ANTO) 462.20p 4.45%
Glencore (GLEN) 139.05p 4.24%
Anglo American (AAL) 643.10p 3.69%
Randgold Resources Ltd. (RRS) 5,930.00p 2.07%
3i Group (III) 543.00p 1.97%
Fresnillo (FRES) 1,046.00p 1.95%
Mediclinic International (MDC) 872.00p 1.93%
Sainsbury (J) (SBRY) 267.40p 1.71%
Shire Plc (SHP) 4,388.00p 1.36%

FTSE 100 - Fallers

DCC (DCC) 6,300.00p -3.23%
Carnival (CCL) 3,411.00p -2.24%
Whitbread (WTB) 4,271.00p -1.95%
Travis Perkins (TPK) 1,930.00p -1.28%
International Consolidated Airlines Group SA (CDI) (IAG) 544.50p -1.18%
easyJet (EZJ) 1,538.00p -1.16%
Aviva (AV.) 450.40p -1.14%
Royal Bank of Scotland Group (RBS) 253.10p -1.13%
Marks & Spencer Group (MKS) 395.10p -1.08%
Royal Mail (RMG) 521.00p -1.04%

FTSE 250 - Risers

Aldermore Group (ALD) 219.80p 4.82%
Pets at Home Group (PETS) 259.70p 4.17%
Sports Direct International (SPD) 376.90p 4.14%
Thomas Cook Group (TCG) 75.45p 3.78%
PayPoint (PAY) 907.00p 3.78%
Kaz Minerals (KAZ) 154.50p 3.69%
Polymetal International (POLY) 829.00p 3.37%
Ocado Group (OCDO) 274.90p 3.23%
Electrocomponents (ECM) 291.30p 3.04%
IP Group (IPO) 162.70p 2.71%

FTSE 250 - Fallers

Ibstock (IBST) 201.70p -9.83%
Electra Private Equity (ELTA) 3,790.00p -4.17%
Jimmy Choo (CHOO) 115.00p -3.04%
Restaurant Group (RTN) 359.80p -2.89%
Great Portland Estates (GPOR) 766.50p -2.79%
Spectris (SXS) 1,670.00p -2.51%
The Renewables Infrastructure Group Limited (TRIG) 99.10p -2.36%
Inchcape (INCH) 697.00p -2.24%
Kennedy Wilson Europe Real Estate (KWE) 1,078.00p -2.00%
Brewin Dolphin Holdings (BRW) 253.90p -1.86%