London midday: Stocks reverse losses after Brussels attacks

UK equities were slightly higher on Wednesday, reversing the previous day’s slide when explosions in Brussels hurt sentiment.

Global equity markets slumped after twin explosions at Zaventem airport and a metro station on Tuesday morning left about 34 people dead and 250 wounded. Extremists group ISIL claimed responsibility for the attacks shortly after.

UK stocks began to recover later in the day from the news which had sent travel and leisure shares lower. Many analysts suggested the market has become resilient to such events after the Paris terrorist attacks.

On Wednesday’s agenda there is little in the way of economic data to drive markets.

“In all likelihood such a limited day of data means the index may find it hard to gain much momentum as the day goes on,” said Connor Campbell, financial analyst at Spreadex.

In a lift to markets, the president of the Asian Development Bank said on Wednesday that China’s economy is unlikely to suffer a hard landing as there is room for fiscal and monetary stimulus to boost growth.

"There won't be a hard landing," Takehiko Nakao, a former Japanese vice finance minister for international affairs, told a news conference.

The lender has forecast China’s economy will grow 6.7% this year, but Takehiko suggested that the estimate might be modified lowered later this month.

China's government is targeting growth of 6.5% to 7% this year after 6.9% expansion in 2015.

Meanwhile, oil prices declined as traders awaited government data on weekly US crude oil inventories at 1430 GMT. Brent crude fell 0.79% to $41.46 per barrel and West Texas Intermediate dipped 0.85% to $41.10 per barrel at 1142 GMT.

In corporate news, Kingfisher shares jumped after the home improvement retailer reported a 0.3% increase in full year adjusted pre-tax profit to £686m.

Sports Direct was in the red after releasing a statement clarifying that its earnings for the full year to the end of April will be at the bottom of the range of its guidance announced back in January.

Wizz Air advanced after saying the strong performance seen in the first nine months had continued into the final quarter due to robust ticket sales, lower fuel costs, robust load factors and a continued disciplined approach to cost management.

William Hill plunged after posting a disappointing first-quarter update on the back of a loss-making Cheltenham horse racing festival and weaker than expected online performance.

HomeServe gained as it said trading in the final quarter had been as forecast and full year results were expected to be in line with expectations.

DFS Furniture dropped as it warned it was “not clear what the impact and outcome will be on consumer confidence and sterling” ahead of Britain’s referendum on its European Union membership on 23 June.

Market Movers

FTSE 100 (UKX) 6,199.63 0.11%
FTSE 250 (MCX) 16,920.71 0.10%
techMARK (TASX) 3,114.26 0.29%

FTSE 100 - Risers

Kingfisher (KGF) 362.30p 3.34%
Carnival (CCL) 3,527.00p 2.05%
WPP (WPP) 1,625.00p 1.88%
Berkeley Group Holdings (The) (BKG) 3,256.00p 1.85%
Mediclinic International (MDC) 880.50p 1.79%
Unilever (ULVR) 3,153.00p 1.63%
Sky (SKY) 1,029.00p 1.58%
Experian (EXPN) 1,224.00p 1.58%
Worldpay Group (WI) (WPG) 280.30p 1.19%
Inmarsat (ISAT) 939.00p 0.97%

FTSE 100 - Fallers

Randgold Resources Ltd. (RRS) 6,410.00p -1.91%
Paddy Power Betfair (PPB) 9,070.00p -1.84%
Tesco (TSCO) 198.35p -1.64%
Fresnillo (FRES) 978.00p -1.61%
Antofagasta (ANTO) 490.90p -1.37%
Royal Bank of Scotland Group (RBS) 230.60p -1.20%
Pearson (PSON) 902.50p -1.15%
Direct Line Insurance Group (DLG) 376.10p -1.08%
Aviva (AV.) 471.50p -0.88%
Provident Financial (PFG) 3,001.00p -0.83%

FTSE 250 - Risers

Allied Minds (ALM) 474.60p 5.35%
Ocado Group (OCDO) 307.20p 3.68%
Regus (RGU) 309.10p 3.45%
Vedanta Resources (VED) 334.70p 2.79%
CLS Holdings (CLI) 1,538.00p 2.74%
Euromoney Institutional Investor (ERM) 900.00p 2.68%
Thomas Cook Group (TCG) 90.70p 2.43%
Evraz (EVR) 89.40p 2.41%
Just Retirement Group (JRG) 154.20p 2.32%
Woodford Patient Capital Trust (WPCT) 93.50p 2.13%

FTSE 250 - Fallers

William Hill (WMH) 330.80p -10.79%
Sports Direct International (SPD) 357.70p -5.67%
DFS Furniture (DFS) 309.50p -4.77%
JD Sports Fashion (JD.) 1,094.00p -3.87%
Amec Foster Wheeler (AMFW) 481.90p -3.12%
Serco Group (SRP) 100.40p -2.52%
Acacia Mining (ACA) 270.90p -2.45%
Jimmy Choo (CHOO) 131.90p -2.30%
Entertainment One Limited (ETO) 154.80p -2.09%
Wood Group (John) (WG.) 626.50p -2.03%