London open: Inflation again in focus at quarter's end

Stocks were edging up in the final trading session of the second quarter, as investors waited on the release of key inflation data in the euro area and U.S..

As of 0902 BST, the London's top-flight index was edging up by 0.26% to 7,491.09, alongside a 0.27% advance to 18,319.23 on the FTSE 250.

Another batch of stronger-than-expected economic data published the day before had pushed bond yields higher and dragged on stocks during the prior session.

That prompted Michael Hewson, chief market analyst at CMC Markets UK, to tell clients: "The surprising resilience of US economic data this week has made it an absolute certainty that we will see another rate increase in July, but also raised the possibility that we might see another 2 more rate increases after that."

Overnight China's National Bureau of Statistics said that its manufacturing sector Purchasing Managers' Index improved from a reading of 48.8 for May to 49.0 in June.

However, the non-factory PMI slipped from 54.5 to 53.2 (consensus: 53.5).

Back in the UK, Nationwide reported that UK house prices eked out a 0.1% month-on-month rise in June, but the annual rate of increase dipped from -3.4% for May to -3.5% this time around.

Earlier, the Office for National Statistics had confirmed an earlier estimate of 0.1% quarter-on-quarter growth in the UK economic during the first three months of 2023.

Still ahead for later in the session, at 1000 BST Eurostat was scheduled to release a preliminary reading for euro area consumer prices in June.

That would be followed at 1330 BST by U.S. Department of Commerce figures for the personal consumption expenditures price deflators for June.

Also due out were MNI Chicago's factory sector index for June and a final reading on US consumer confidence for the same month out of the University of Michigan.

Centrica squirrels away for the winter

Energy group Centrica has increased capacity at its previously mothballed Rough gas storage facility, it confirmed on Friday. The owner of British Gas said that following engineering work, the facility – located 18 miles off the coast of east Yorkshire – can now hold 54bn cubic feet of gas, the equivalent of around six days of average gas use.

Global automotive distributor Inchcape has formed a global strategic partnership with China's Great Wall Motor Company, the company said on Friday.Under the partnership, Inchcape and GWM will develop new areas of collaboration, including opportunities to distribute GWM vehicles in markets where Inchcape is already present, starting with Indonesia.

Barratt Developments has agreed the future sale of 604 homes to Citra Living Properties, a wholly-owned subsidiary of Lloyds Bank for £168.4m. The housebuilder on Friday said it would recognise revenue and profit on the legal completion of each home under the sale agreement.

Endeavour Mining announced the sale of its 90% interests in the Boungou and Wahgnion mines in Burkina Faso to Lilium Mining for over $300m on Friday. The consideration included upfront and deferred cash payments, as well as net smelter return royalties. Following the sale, Endeavour updated its 2023 production and cost guidance, with a decrease in production but an improvement in all-in sustaining costs.

Market Movers

FTSE 100 (UKX) 7,502.72 0.42%
FTSE 250 (MCX) 18,335.91 0.36%
techMARK (TASX) 4,450.26 0.17%

FTSE 100 - Risers

Ocado Group (OCDO) 551.60p 2.11%
NATWEST GROUP (NWG) 239.60p 1.83%
Weir Group (WEIR) 1,766.00p 1.79%
Abrdn (ABDN) 218.60p 1.44%
Centrica (CNA) 121.75p 1.42%
BP (BP.) 461.10p 1.39%
IMI (IMI) 1,616.00p 1.38%
Rentokil Initial (RTO) 608.80p 1.33%
Informa (INF) 726.80p 1.28%
Melrose Industries (MRO) 506.40p 1.24%

FTSE 100 - Fallers

Airtel Africa (AAF) 108.30p -1.72%
United Utilities Group (UU.) 962.80p -1.37%
Endeavour Mining (EDV) 1,839.00p -1.34%
Severn Trent (SVT) 2,570.00p -0.89%
Scottish Mortgage Inv Trust (SMT) 662.20p -0.48%
Associated British Foods (ABF) 1,977.00p -0.33%
WPP (WPP) 814.20p -0.32%
National Grid (NG.) 1,035.00p -0.29%
Vodafone Group (VOD) 74.14p -0.27%
Rolls-Royce Holdings (RR.) 148.45p -0.17%

FTSE 250 - Risers

Aston Martin Lagonda Global Holdings (AML) 359.00p 4.54%
Ruffer Investment Company Ltd Red PTG Pref Shares (RICA) 283.50p 2.53%
Drax Group (DRX) 575.80p 2.53%
Liontrust Asset Management (LIO) 731.50p 1.88%
BH Macro Ltd. GBP Shares (BHMG) 379.50p 1.74%
Wood Group (John) (WG.) 137.40p 1.70%
Balanced Commercial Property Trust Limited (BCPT) 66.40p 1.68%
HICL Infrastructure (HICL) 134.60p 1.66%
Carnival (CCL) 1,248.00p 1.63%
Indivior (INDV) 1,816.00p 1.62%

FTSE 250 - Fallers

ICG Enterprise Trust (ICGT) 1,050.00p -4.37%
Tyman (TYMN) 250.50p -1.96%
Abrdn Private Equity Opportunities Trust (APEO) 438.00p -1.79%
Fidelity China Special Situations (FCSS) 202.00p -1.70%
Bridgepoint Group (Reg S) (BPT) 198.40p -1.68%
TR Property Inv Trust (TRY) 261.00p -1.51%
Bakkavor Group (BAKK) 95.00p -1.45%
North Atlantic Smaller Companies Inv Trust (NAS) 3,490.00p -1.41%
BlackRock Greater Europe Inv Trust (BRGE) 526.00p -1.31%
Plus500 Ltd (DI) (PLUS) 1,454.00p -1.22%