London open: Stocks fall amid earnings avalanche

London stocks fell in early trade on Thursday following mostly downbeat US and Asian sessions, as investors waded through an avalanche of corporate news.

At 0835 GMT, the FTSE 100 was down 0.4% at 7,887.23.

Victoria Scholar, head of investment at Interactive Investor, said: "The FTSE 100 is being dragged down by Flutter which is trading at the bottom of the UK index on the back of disappointing full-year earnings.

"Focus in Europe now shifts to key inflation and unemployment data from the eurozone at 10am. February’s headline inflation rate is expected to ease to between 8-8.5% from 8.6% in January, however this is still sharply above the ECB’s 2% target. The unemployment rate is seen holding steady at 6.6% close to its record low as the labour market remains tight, potentially adding to inflationary pressures."

In equity markets, Flutter slumped even as it reported strengthened revenues, boosted by acquisitions and a strong performance in the US.

Insurer Beazley lost ground after it posted a drop in full-year profit as it took a hit from investment losses.

GSK spinoff Haleon was on the back foot as it said full-year adjusted operating profit rose 13.8% and that it expects organic revenue growth of 4% to 6% for 2023, and for the adjusted operating margin to be "broadly flat".

LSE Group was weaker as it posted a jump in full-year profit and said it was seeking shareholder approval for a £750m buyback.

ITV fell after the broadcaster reported lower annual profits due to tougher economic conditions and the investment made in its ITVX streaming service.

Taylor Wimpey was down as it warned that completions were set to fall this year, the latest housebuilder to see higher mortgage costs and the cost-of-living crisis knock buyer confidence after a profit warning from Persimmon on Wednesday.

HSBC, Hargreaves Lansdown and Berkeley were all lower as they traded without entitlement to the dividend.

On the upside, CRH surged to the top of the FTSE 100 after the building materials group posted a jump in full-year earnings and sales, and said it was planning to recommend a transition to a US primary listing this year.

Melrose advanced after it said 2022 profits came in higher than expected and forecast a significantly stronger performance from its aerospace unit this year.

M&G rallied following a Sky News report that Australian banking and finance group Macquarie is weighing a £5bn-plus takeover bid for the fund manager and insurer.

National Express and Coats Group also rose after results.

Market Movers

FTSE 100 (UKX) 7,887.23 -0.35%
FTSE 250 (MCX) 19,809.04 -0.31%
techMARK (TASX) 4,594.39 -0.97%

FTSE 100 - Risers

CRH (CDI) (CRH) 4,339.00p 9.61%
Melrose Industries (MRO) 160.80p 4.42%
M&G (MNG) 224.70p 2.33%
BP (BP.) 555.40p 0.76%
Weir Group (WEIR) 2,031.00p 0.55%
Admiral Group (ADM) 2,157.00p 0.47%
Shell (SHEL) 2,574.00p 0.35%
Legal & General Group (LGEN) 257.40p 0.31%
Rio Tinto (RIO) 6,001.00p 0.25%
GSK (GSK) 1,420.20p 0.20%

FTSE 100 - Fallers

Flutter Entertainment (CDI) (FLTR) 12,710.00p -6.45%
Beazley (BEZ) 655.00p -4.62%
HSBC Holdings (HSBA) 617.70p -3.53%
Haleon (HLN) 318.35p -2.66%
Schroders (SDR) 488.50p -2.24%
London Stock Exchange Group (LSEG) 7,272.00p -1.96%
Ocado Group (OCDO) 520.40p -1.74%
Hargreaves Lansdown (HL.) 822.00p -1.72%
Berkeley Group Holdings (The) (BKG) 4,054.00p -1.48%
Rolls-Royce Holdings (RR.) 145.56p -1.46%

FTSE 250 - Risers

National Express Group (NEX) 138.00p 11.29%
Mitie Group (MTO) 84.30p 5.64%
Aston Martin Lagonda Global Holdings (AML) 214.50p 3.32%
Coats Group (COA) 74.70p 2.19%
Premier Foods (PFD) 116.00p 1.75%
Jupiter Fund Management (JUP) 150.60p 1.69%
SDCL Energy Efficiency Income Trust (SEIT) 91.50p 1.44%
Hipgnosis Songs Fund Limited NPV (SONG) 86.80p 1.17%
Capital Gearing Trust (CGT) 4,885.00p 1.14%
Balanced Commercial Property Trust Limited (BCPT) 88.10p 1.03%

FTSE 250 - Fallers

ITV (ITV) 85.82p -3.01%
Computacenter (CCC) 2,208.00p -2.90%
Liontrust Asset Management (LIO) 1,142.00p -2.73%
Diversified Energy Company (DEC) 100.60p -2.52%
Babcock International Group (BAB) 321.20p -2.37%
Safestore Holdings (SAFE) 976.00p -1.96%
Ashmore Group (ASHM) 262.80p -1.94%
Mitchells & Butlers (MAB) 160.50p -1.89%
Watches of Switzerland Group (WOSG) 795.50p -1.85%
HICL Infrastructure (HICL) 153.60p -1.79%