London midday: Stocks maintain gains in calmer markets

London stocks were still firmer by midday on Monday as a sense of calm returned to markets after last week’s turmoil.

The FTSE 100 was up 0.5% at 8,206.41.

Russ Mould, investment director at AJ Bell, said: "After a volatile week last week investors will be relieved to see the FTSE 100 start off on Monday with steady gains.

"The current calm may not last long with inflation readings due on both sides of the Atlantic as well as US retail sales data.

"Concern about the risks of a recession in the US could be either compounded or somewhat alleviated by the retail number given it is the primary marker of consumer spending which, in turn, accounts for the majority of overall economic activity."

On home shores, investors mulled comments from Catherine Mann, an external member of the Bank of England’s monetary policy committee.

In an Economics Show podcast with the Financial Times, Mann said the UK should not be "seduced" into thinking the battle against inflation is over after a short-term drop in the headline measure targeted by the Bank.

Mann said she was still concerned about upside risks to inflation despite the main rate remaining at the bank’s 2% target in June.

Goods and services prices were set to rise again, Mann said, and wage pressures in the economy could take years to dissipate.

She told the FT that survey evidence suggested that companies were still expecting to make relatively big increases to both wages and prices, and "that says to me right now I’m looking at a problem for next year".

In equity markets, BT Group surged to the top of the FTSE 100 after Bharti Global bought Altice UK's 24.5% stake in the telecoms company.

"We welcome investors who recognise the long-term value of our business, and this scale of investment from Bharti Global is a great vote of confidence in the future of BT Group and our strategy," BT boss Alison Kirkby said.

Elsewhere, Marshalls fell as it posted a 20% drop in first-half adjusted pre-tax profit amid weak end markets.

In broker note action, JD Sports was knocked lower by a downgrade to ‘sell’ from ‘hold’ at Deutsche Bank, but Diageo fizzed higher after an upgrade to ‘sector perform’ from ‘underperform’ at RBC Capital Markets.

Market Movers

FTSE 100 (UKX) 8,206.41 0.47%
FTSE 250 (MCX) 20,677.70 0.25%
techMARK (TASX) 4,800.23 0.42%

FTSE 100 - Risers

BT Group (BT.A) 138.90p 6.44%
Centrica (CNA) 126.15p 2.35%
Entain (ENT) 567.80p 1.72%
Spirax Group (SPX) 7,790.00p 1.70%
Standard Chartered (STAN) 726.40p 1.54%
Diploma (DPLM) 4,180.00p 1.36%
Coca-Cola HBC AG (CDI) (CCH) 2,720.00p 1.34%
BP (BP.) 439.50p 1.33%
BAE Systems (BA.) 1,293.50p 1.25%
Anglo American (AAL) 2,253.00p 1.21%

FTSE 100 - Fallers

JD Sports Fashion (JD.) 120.85p -3.67%
B&M European Value Retail S.A. (DI) (BME) 447.50p -1.58%
Frasers Group (FRAS) 831.00p -1.31%
Burberry Group (BRBY) 679.40p -0.79%
Pershing Square Holdings Ltd NPV (PSH) 3,538.00p -0.67%
Lloyds Banking Group (LLOY) 56.60p -0.63%
SEGRO (SGRO) 887.80p -0.60%
CRH (CDI) (CRH) 6,472.00p -0.49%
LondonMetric Property (LMP) 197.70p -0.45%
Unite Group (UTG) 940.50p -0.42%

FTSE 250 - Risers

Just Group (JUST) 119.00p 3.66%
Hochschild Mining (HOC) 172.00p 3.12%
TP Icap Group (TCAP) 231.50p 2.66%
Bank of Georgia Group (BGEO) 4,095.00p 2.50%
Bakkavor Group (BAKK) 150.00p 2.39%
Abrdn (ABDN) 152.15p 1.98%
Lancashire Holdings Limited (LRE) 636.00p 1.92%
Bridgepoint Group (Reg S) (BPT) 279.60p 1.82%
Renewi (RWI) 657.00p 1.70%
Jupiter Fund Management (JUP) 77.40p 1.57%

FTSE 250 - Fallers

Auction Technology Group (ATG) 440.50p -2.87%
Syncona Limited NPV (SYNC) 116.20p -2.35%
RIT Capital Partners (RCP) 1,828.00p -1.51%
TI Fluid Systems (TIFS) 125.60p -1.41%
Caledonia Investments (CLDN) 3,510.00p -1.40%
Wetherspoon (J.D.) (JDW) 738.50p -1.27%
Templeton Emerging Markets Inv Trust (TEM) 159.40p -1.24%
Watches of Switzerland Group (WOSG) 372.80p -1.22%
Greggs (GRG) 3,088.00p -1.09%
Genus (GNS) 1,728.00p -1.03%