London midday: Stocks hold up ahead of May's Brexit plan-B speech

London stocks had maintained modest gains by midday on Monday as investors digested Chinese growth figures and awaited Theresa May’s presentation of her ‘Plan B’ on Brexit to Commons.

The FTSE 100 was up 0.2% to 6,978.76, while the pound was flat versus the dollar at 1.2873 and 0.1% lower against the euro at 1.1323 as May looked set to return to Commons later in the day with her Brexit 'Plan B'.

The Prime Minister is due to make a speech to the House of Commons during which she is expected to say that she plans to seek concessions from the European Union on the contentious Irish backstop - representing virtually no change from last week.

However, some opposition MPs are expected to table an amendment to the government motion seeking to extend article 50 if there is a likelihood of a no-deal departure.

May had pledged cross-party talks to get agreement on her deal but Labour leader Jeremy Corbyn refused to meet her unless she was prepared to rule out a no-deal scenario.

Away from Brexit, investors were mulling over the latest figures out of China, which showed that GDP slowed to 6.4% in the fourth quarter, representing the slowest rate of growth since the financial crisis, but in line with expectations. Meanwhile, full year growth was above expectations at 6.6%, which was the softest since 1990.

Still, Chinese retail sales and industrial production figures came in better than expected.

Joshua Mahony, senior market analyst at IG, said: "Promises of a stimulus package for the Chinese economy have certainly helped ease the fears over a continued slowdown, yet the fact is that a trade breakthrough with the US is required to fully appease markets. Despite the headline GDP reading providing precious little reason for optimism, the improved industrial production and retail sales figures for December go some way to showing that there is some form of improvement within the widespread decline in Chinese economic data."

On the corporate front, airlines were faring well, with EasyJet, British Airways owner IAG and Wizz Air all higher as oil prices slipped back and as HSBC upped its stance on Ryanair to 'buy' from 'reduce'.

Aerospace engineer Meggitt rose as it had signed a $750m (£582.6m) 10-year deal with US engine maker Pratt & Whitney to continue the supply of advanced composite components for the F119 and F135 engines which power the F-22 Raptor and F-35 Lightning II aircraft.

Superdry was top of the FTSE 250 following a Sunday Times report that former boss Julian Dunkerton will call an extraordinary general meeting of the company's shareholders in the next four weeks as he looks to return to the group.

On the downside, housebuilders Taylor Wimpey and Berkeley retreated as the latest survey from Rightmove showed the UK property market suffered its slowest start to the year this January since 2012.

House prices rose by 0.4% in the month this month, which was the lowest monthly rise this time of year since January 2012, but better than the 1.5% drop seen in December. On the year, house prices were also up 0.4%, slowing down from the 0.7% increase since in December.

The survey found that it has been a patchy but active start to the year, with more northerly regions faring better in terms of pricing power and willingness to move than those farther south.

B&Q owner Kingfisher was the biggest faller following a downgrade to 'underperform' at RBC Capital Markets.

William Hill slumped as it warned full-year 2018 adjusted operating profit was expected to be about 15% lower than the year before.

GlaxoSmithKline ticked lower after saying that said chairman Sir Philip Hampton was stepping down and the board had started the process to find a successor.

Just Eat slipped as it said full year results were going to be ahead of revenue and profit targets but announced that chief executive Peter Plumb is leaving the online takeaway food marketplace little over a year after he started. Chief customer officer Peter Duffy will step in as interim CEO with immediate effect and the search for a permanent replacement has begun.

Hammerson, Capital & Regional and Shaftesbury were all in the red after downgrades to 'neutral' by JPMorgan. The sector was also knocked lower by a report over the weekend suggesting that the Royal Institution of Chartered Surveyors could slash the value of UK shopping centres and high street stores after property agents were told to reflect the changes sweeping the industry.

According to the Sunday Times, RICS has told valuers to be "aware of the potential for significant changes in value" in retail properties.

Elsewhere, Hiscox was cut to ‘underperform’ at KBW, Rentokil was cut to ‘neutral’ at Goldman and Sophos was downgraded to ‘hold’ at Liberum.

Market Movers

FTSE 100 (UKX) 6,978.76 0.15%
FTSE 250 (MCX) 18,750.98 -0.07%
techMARK (TASX) 3,400.65 0.19%

FTSE 100 - Risers

NMC Health (NMC) 2,806.00p 1.74%
easyJet (EZJ) 1,187.80p 1.35%
International Consolidated Airlines Group SA (CDI) (IAG) 626.33p 1.28%
British American Tobacco (BATS) 2,571.00p 1.16%
TUI AG Reg Shs (DI) (TUI) 1,200.50p 1.14%
Bunzl (BNZL) 2,448.00p 1.12%
Hikma Pharmaceuticals (HIK) 1,564.50p 1.10%
Fresnillo (FRES) 896.80p 1.04%
Spirax-Sarco Engineering (SPX) 6,470.00p 1.01%
DCC (DCC) 6,505.00p 1.01%

FTSE 100 - Fallers

Kingfisher (KGF) 219.60p -3.18%
Antofagasta (ANTO) 832.40p -2.62%
United Utilities Group (UU.) 816.20p -1.76%
Centrica (CNA) 135.00p -1.57%
Marks & Spencer Group (MKS) 285.12p -1.51%
Sainsbury (J) (SBRY) 273.80p -1.48%
Taylor Wimpey (TW.) 164.78p -1.45%
Tesco (TSCO) 221.60p -1.29%
Persimmon (PSN) 2,366.35p -1.20%
Berkeley Group Holdings (The) (BKG) 3,798.00p -1.12%

FTSE 250 - Risers

Wizz Air Holdings (WIZZ) 3,123.00p 3.41%
Superdry (SDRY) 525.09p 3.36%
RPC Group (RPC) 743.20p 2.54%
RHI Magnesita N.V. (DI) (RHIM) 4,172.00p 2.51%
Daejan Holdings (DJAN) 6,000.00p 2.04%
National Express Group (NEX) 390.40p 1.99%
Clarkson (CKN) 2,410.00p 1.90%
Ted Baker (TED) 1,847.00p 1.88%
Weir Group (WEIR) 1,440.83p 1.83%
Lancashire Holdings Limited (LRE) 593.00p 1.63%

FTSE 250 - Fallers

Hammerson (HMSO) 344.10p -3.86%
William Hill (WMH) 170.30p -3.13%
Renishaw (RSW) 4,122.00p -3.06%
888 Holdings (888) 168.00p -2.78%
JD Sports Fashion (JD.) 433.70p -2.76%
Travis Perkins (TPK) 1,230.00p -2.50%
Indivior (INDV) 122.65p -2.31%
Acacia Mining (ACA) 176.30p -2.27%
B&M European Value Retail S.A. (DI) (BME) 316.10p -2.14%
Synthomer (SYNT) 375.80p -2.14%