London midday: Stocks little changed amid earnings deluge

London stocks were just below the flat line by midday on Thursday as investors mulled a less hawkish stance from the US Federal Reserve and picked their way through more corporate news than you can shake a stick at.

The FTSE 100 was down 0.1% at 7,337.79.

On Wednesday evening, the FOMC raised the target range for the Fed funds rate by 0.75% to 2.25% to 2.50%, as expected. But investors breathed a sigh of relief after Chair Jerome Powell noted that economic data had started to soften and hinted the Fed could slow the pace of rate hikes and adopt a meeting-by-meeting approach.

Russ Mould, investment director at AJ Bell, said: "This gave investors at least a hint that it might start to ease its foot off the rate acceleration pedal a touch, and helped Asian markets make progress overnight."

In equity markets, medical technology group Smith & Nephew slid after it posted a drop in first-half pre-tax profit.

Mould said: "Smith & Nephew struggled during the pandemic as elective surgeries were cancelled and demand for its hip and knee implants fell. As we emerge from the pandemic then in theory it should have a big backlog of business to get through, but supply chain and execution issues in its orthopaedics business are holding it back.

"Recently appointed CEO Deepak Nath really needs to sort these problems out fast so the company doesn’t miss out on a significant market opportunity."

Airtel Africa was also in the red after first-quarter results, along with BT Group.

Barclays fell as it reported a decline in half-year pre-tax profits due to higher costs and a £300m impairment provision for bad debts amid the cost-of-living crisis. The bank said pre-tax profits fell 24% to £3.7bn.

Group income was £13.2bn, up 17% year-on-year, including £800m from hedging arrangements related to the over-issuance of securities. Credit impairment charges were £300m compared with a £700m release of cash last year that had been set aside for debts expected during the Covid pandemic.

CMC Markets tumbled after the online trading platform said operating costs were set to be 5% higher than initially expected.

On the upside, miners rallied, with Anglo American also in the black despite reporting a 28% fall in first-half earnings.

Smurfit Kappa got a boost after JPMorgan Cazenove lifted its price target on the shares, while drinks maker Diageo rose after it reported a jump in full-year sales thanks to resilient demand and price increases.

Shell gushed higher after the oil giant posted a better-than-expected second-quarter profit of $11.5bn, driven by soaring energy prices.

Schroders pushed higher after the fund manager said asset under management ticked up 1% in the first half.

DiscoverIE, Hammerson, Weir and National Express also gained after updates.

Market Movers

FTSE 100 (UKX) 7,337.79 -0.14%
FTSE 250 (MCX) 19,723.84 0.43%
techMARK (TASX) 4,318.53 -1.05%

FTSE 100 - Risers

Smurfit Kappa Group (CDI) (SKG) 2,975.00p 4.39%
Fresnillo (FRES) 681.00p 3.91%
Ashtead Group (AHT) 4,303.00p 3.81%
Schroders (SDR) 2,834.00p 3.81%
Antofagasta (ANTO) 1,119.00p 3.71%
Anglo American (AAL) 2,861.50p 3.12%
Smith (DS) (SMDS) 285.30p 3.03%
Rentokil Initial (RTO) 516.80p 2.78%
St James's Place (STJ) 1,182.00p 2.74%
Intermediate Capital Group (ICP) 1,448.50p 2.33%

FTSE 100 - Fallers

Smith & Nephew (SN.) 1,076.50p -10.63%
Airtel Africa (AAF) 156.50p -8.43%
Aveva Group (AVV) 2,181.00p -6.39%
BT Group (BT.A) 166.40p -5.51%
SSE (SSE) 1,696.50p -4.66%
Centrica (CNA) 87.92p -3.36%
Barclays (BARC) 153.32p -2.75%
Whitbread (WTB) 2,626.00p -1.83%
BAE Systems (BA.) 768.20p -1.76%
British American Tobacco (BATS) 3,395.00p -1.57%

FTSE 250 - Risers

Discoverie Group (DSCV) 739.00p 8.04%
Hammerson (HMSO) 23.19p 7.21%
Weir Group (WEIR) 1,580.00p 6.22%
Ferrexpo (FXPO) 152.80p 5.96%
Hochschild Mining (HOC) 76.35p 5.46%
National Express Group (NEX) 188.20p 5.08%
Ibstock (IBST) 203.60p 4.36%
Tullow Oil (TLW) 50.55p 4.14%
Aston Martin Lagonda Global Holdings (AML) 477.70p 3.85%
Wood Group (John) (WG.) 156.85p 3.67%

FTSE 250 - Fallers

CMC Markets (CMCX) 251.00p -18.51%
Indivior (INDV) 292.00p -5.19%
Drax Group (DRX) 739.00p -3.52%
IG Group Holdings (IGG) 767.00p -3.40%
Mitchells & Butlers (MAB) 170.00p -3.30%
Royal Mail (RMG) 278.80p -3.13%
The Global Smaller Companies Trust (GSCT) 141.00p -2.49%
NB Private Equity Partners Ltd. (NBPE) 1,580.00p -2.47%
Bytes Technology Group (BYIT) 423.60p -2.17%
QinetiQ Group (QQ.) 373.80p -2.10%