London midday: Stocks turn lower as Russia dashes summit hopes
London stocks had dipped into the red by midday on Monday as hopes of a resolution to the Russia-Ukraine conflict receded.
The FTSE 100 was down 0.1% at 7,502.82, after Moscow said there were no firm plans in place for a summit between Russian President Vladimir Putin and US counterpart Joe Biden.
Stocks had been up earlier in the day after it emerged that Biden had agreed in principle to hold a summit with Putin over Ukraine.
Russ Mould, investment director at AJ Bell, said: "Like everyone else investors are left scratching their heads trying to decipher what the Russian leader’s end-game is and until that becomes clear then nervousness is likely to remain.
"In recent days and weeks, oil prices have bubbled higher in anticipation of the supply disruption that a Ukrainian conflict would bring, and gold has moved higher as people seek out safe havens. Both eased back at the start of the new week, but further volatility looks almost a given at this stage."
On home shores, a survey out earlier showed that private sector output sparked in February, as looser pandemic restrictions boosted spending on travel, leisure and entertainment.
The IHS Markit/CIPS flash UK composite purchasing managers’ index was 60.2 in February, up on January’s final reading of 54.2 and the highest reading since June 2021. It was also well above consensus for 55.3.
Within that, the Services Business Activity Index also beat expectations, at 60.8 compared to January’s 54.1, while manufacturing output touched a seven-month high of 56.7, up on 54.5 a month previously, helped by fewer raw material shortages and an easing in global supply chain pressures. Manufacturing PMI was unchanged at 57.3.
IHS Markit said the survey results showed there had been a "swift rebound" from the impact of Omicron, helped by a strong recovery in consumer spending on travel, leisure and entertainment. However, costs continued to mount, with faster rises in operating expenses at service sector firms offsetting a slowdown in cost inflation at manufacturing companies.
Chris Williamson, chief business economist at IHS Markit, said: "With the PMI’s gauge of output growth accelerating markedly, and cost pressures intensifying to the second-highest on record, the odds of an increasingly aggressive policy tightening have shortened, with a third back-to-back rate rise looking increasingly inevitable in March."
In equity markets, Petropavlovsk - which operates gold mines in Russia - was the worst performer on the FTSE 100.
Commercial property landlord Hammerson reversed earlier gains to trade lower after confirming it was in talks over the possible sale of its Victoria Gate and Victoria Quarter shopping centres for £120m as it looked to strengthen its balance sheet after the Covid-pandemic.
AstraZeneca was the standout gainer on the top-flight index after it said data from a late-stage trial had shown that its Enhertu drug helped patients with a type of breast cancer to live longer.
Dechra Pharmaceuticals was also in the black after it lifted its dividend and posted a jump in first-half profit and revenue.
Outside the FTSE 350, deal news was in focus, with Clopper Logistics up sharply after saying it had agreed to be taken over by US rival GXO in a £943m deal.
John Menzies was also in the spotlight again after Kuwait's National Aviation Services sweetened its takeover proposal for the UK airport services company, valuing it at about £559m.
Market Movers
FTSE 100 (UKX) 7,502.82 -0.14%
FTSE 250 (MCX) 21,057.94 -1.43%
techMARK (TASX) 4,298.04 -0.46%
FTSE 100 - Risers
AstraZeneca (AZN) 9,020.00p 2.49%
B&M European Value Retail S.A. (DI) (BME) 593.20p 1.64%
Reckitt Benckiser Group (RKT) 6,347.00p 1.18%
Airtel Africa (AAF) 155.50p 1.04%
NATWEST GROUP PLC ORD 100P (NWG) 236.90p 1.02%
Informa (INF) 606.20p 0.87%
Sage Group (SGE) 673.80p 0.78%
Kingfisher (KGF) 325.50p 0.77%
Barclays (BARC) 192.60p 0.75%
Associated British Foods (ABF) 1,919.50p 0.63%
FTSE 100 - Fallers
Polymetal International (POLY) 1,084.50p -7.27%
Scottish Mortgage Inv Trust (SMT) 970.20p -4.41%
Ashtead Group (AHT) 4,599.00p -3.75%
Evraz (EVR) 272.60p -3.74%
BT Group (BT.A) 192.90p -2.25%
Antofagasta (ANTO) 1,375.00p -2.07%
Spirax-Sarco Engineering (SPX) 11,455.00p -2.01%
JD Sports Fashion (JD.) 162.85p -1.72%
Smurfit Kappa Group (CDI) (SKG) 4,002.00p -1.62%
Melrose Industries (MRO) 152.15p -1.49%
FTSE 250 - Risers
Darktrace (DARK) 341.00p 5.25%
JTC (JTC) 782.00p 5.11%
Petershill Partners (PHLL) 204.50p 4.98%
Indivior (INDV) 279.20p 2.57%
Energean (ENOG) 957.50p 2.35%
Moneysupermarket.com Group (MONY) 197.50p 1.80%
Ultra Electronics Holdings (ULE) 3,064.00p 1.59%
LXI Reit (LXI) 137.60p 1.18%
Auction Technology Group (ATG) 892.00p 1.13%
Marshalls (MSLH) 659.00p 1.00%
FTSE 250 - Fallers
Petropavlovsk (POG) 14.20p -11.14%
Oxford Biomedica (OXB) 671.00p -9.20%
TBC Bank Group (TBCG) 1,394.00p -7.07%
Discoverie Group (DSCV) 764.00p -7.06%
Moonpig Group (MOON) 261.40p -5.43%
Baillie Gifford US Growth Trust (USA) 206.50p -5.28%
Aston Martin Lagonda Global Holdings (AML) 1,063.00p -4.88%
Ferrexpo (FXPO) 264.80p -4.27%
IWG (IWG) 266.00p -4.25%
Endeavour Mining (EDV) 1,815.00p -4.22%