London open: FTSE edges lower ahead of ECB announcement
London stocks edged lower in early trade on Thursday as investors eyed the latest policy announcement from the European Central Bank.
At 0900 BST, the FTSE 100 was down 0.2% at 7,567.24.
CMC Markets analyst Michael Hewson said: "The ECB doesn’t appear to have the luxury of doing nothing, yet this is what we can probably expect when President Lagarde holds her press conference later today, against a backdrop of rising discontent amongst countries like Germany and the Netherlands, about ECB inaction.
"Of all the central banks now, the ECB probably has the most difficult task, trying to navigate the complex intricacies of a CPI inflation spread between eurozone members of 4.5% in France, to 15.2% in Estonia.
"This helps explain why, in recent years, the ECB has managed to turn procrastination into an art form, with a degree of linguistic legerdemain that would make a politician proud.
"This cannot continue and at some point, the ECB will have to bite the bullet and set out a timeline for a rate hike. Lagarde will also have to fend off questions on how the ECB would deal with a widening of bond spreads, fully aware of the fact that she is currently limited in options on how to achieve that.
"She certainly can’t use the answer she used at her first press conference, that the ECB is not here to close spreads!"
In equity markets, broadcaster ITV was the worst performer on the FTSE 100 as it traded without entitlement to the dividend.
Gold miner Petropavlovsk - which has operations in Russia - slid after saying it was considering the sale of its operating subsidiaries. The company said it has appointed AlixPartners to assist the board as it explores its options and determines the course of action in the best interest of all stakeholders, including creditors and shareholders.
Last month, the UK imposed sanctions on Russia’s Gazprombank, with which Petropavlovsk has a $2000m loan. As a result of the sanctions, Petropavlovsk is prohibited for selling any gold to Gazprombank - its sole buyer - and cannot pay interest on its loan.
Ashmore was also weaker after it said assets under management fell 10% in the third quarter as investors withdrew funds following Russia's invasion of Ukraine.
On the upside, East European low-cost carrier Wizz Air flew higher as it said it was expecting to ramp up capacity beyond pre-pandemic levels for its summer schedule as it forecast a better-than-expected final quarter. BA and Iberia owner IAG was also in the black.
Electronics manufacturer DiscoverIE rose after saying it expects to deliver full-year underlying earnings from continuing operations ahead of previous guidance.
Market Movers
FTSE 100 (UKX) 7,567.24 -0.18%
FTSE 250 (MCX) 20,949.17 -0.17%
techMARK (TASX) 4,389.37 -0.21%
FTSE 100 - Risers
International Consolidated Airlines Group SA (CDI) (IAG) 143.92p 2.58%
InterContinental Hotels Group (IHG) 5,114.00p 2.57%
Flutter Entertainment (CDI) (FLTR) 8,538.00p 1.64%
Rolls-Royce Holdings (RR.) 91.19p 1.29%
Antofagasta (ANTO) 1,688.00p 1.23%
Smurfit Kappa Group (CDI) (SKG) 3,117.00p 1.17%
Burberry Group (BRBY) 1,610.50p 0.91%
Associated British Foods (ABF) 1,617.00p 0.81%
Land Securities Group (LAND) 753.60p 0.69%
Auto Trader Group (AUTO) 646.60p 0.69%
FTSE 100 - Fallers
ITV (ITV) 75.78p -4.20%
Electrocomponents (ECM) 1,033.00p -1.81%
Coca-Cola HBC AG (CDI) (CCH) 1,571.00p -1.78%
Berkeley Group Holdings (The) (BKG) 3,878.00p -1.65%
BT Group (BT.A) 186.10p -1.53%
Pearson (PSON) 766.60p -1.39%
Barratt Developments (BDEV) 496.00p -1.31%
Imperial Brands (IMB) 1,650.00p -1.17%
WPP (WPP) 965.00p -1.17%
Tesco (TSCO) 262.20p -1.13%
FTSE 250 - Risers
Wizz Air Holdings (WIZZ) 3,125.00p 8.06%
Darktrace (DARK) 416.50p 4.18%
Discoverie Group (DSCV) 780.00p 2.63%
easyJet (EZJ) 570.80p 2.62%
Dr. Martens (DOCS) 229.00p 2.32%
WH Smith (SMWH) 1,482.50p 2.10%
Mediclinic International (MDC) 394.00p 1.91%
Dunelm Group (DNLM) 1,079.00p 1.79%
JPMorgan Japanese Inv Trust (JFJ) 490.50p 1.66%
SSP Group (SSPG) 231.80p 1.58%
FTSE 250 - Fallers
Polymetal International (POLY) 251.10p -7.07%
Vesuvius (VSVS) 325.00p -6.77%
Ashmore Group (ASHM) 218.40p -3.87%
Baltic Classifieds Group (BCG) 160.20p -3.73%
Ibstock (IBST) 165.40p -3.56%
Countryside Partnerships (CSP) 241.60p -3.44%
Investec (INVP) 475.60p -2.48%
Hays (HAS) 116.40p -2.42%
Hochschild Mining (HOC) 143.90p -2.24%
NB Private Equity Partners Ltd. (NBPE) 1,590.00p -2.15%