London open: Stocks flat as investors digest consumer confidence figures

London stocks were little changed in early trade as investors sifted through some mixed corporate earnings and a survey showing a rebound in UK consumer confidence.

At 0830 BST, the FTSE 100 was flat at 6,818.64.

Rebecca O’Keeffe, head of investment at Interactive Investor, said: “Traditional August volatility has been missing this year as muted volumes and the continuing yield hunt has seen equity markets continue to benefit as investors struggle to find alternative investment opportunities.

“However, September could see a return to more interesting and volatile market conditions as central banks yet again become the primary focus of attention. Friday's US employment report could be the final piece of the jigsaw puzzle that might set the tone for a more hawkish Federal Reserve. Against a backdrop where economic pressure in Europe and the UK is more likely to see rates cut further, this decoupling could see market volatility spike sharply.”

On the data front, GfK’s headline consumer confidence index rose five points to -7 in August, which was slightly above consensus expectations of -8 but still well below the 12-month average of -1.

All five measures used to calculate the index increased in August, with the index of major purchases up nine points at +7 and the personal financial situation index up one point to 0.

Meanwhile, the survey found expectations for the general economic situation over the next 12 months have increased 11 points to -22.

Joe Staton, head of Market Dynamics at GfK, said: “We're reporting some recovery in the Index this month as consumers settle into the new wait-and-see reality of a post-Brexit, pre-exit UK. The uptick in confidence is driven by good news from hard data, the combination of historic low interest rates matched with falling prices and high levels of employment.

"This can be seen in positive growth across all major measures including both our Personal and General Economic situation for the next 12-months.”

There are no further UK data releases of note due, but eurozone inflation and unemployment rate are at 1000 BST.

In corporate news, 888 Holdings rallied as favourable sports results and strong casino winnings lifted its first-half numbers, helping to make up for its failed plot to buy William Hill.

Diploma edged higher as it said underlying sales grew 2% in the year to September, with acquisitions and the weak pound helping to lift statutory revenues 14%.

James Fisher was under the cosh after it said it expected to return to growth in the second half and produce "a good improvement" in the full year after another fall in revenue and profits in the first half.

FTSE 250 builders merchant Grafton Group tumbled as it reported a rise in first-half pre-tax profit as revenue grew thanks in part to strong performances in the Netherlands and Ireland, but warned of a challenging backdrop in UK merchanting.

Market Movers

FTSE 100 (UKX) 6,818.82 -0.03%
FTSE 250 (MCX) 17,803.78 -0.24%
techMARK (TASX) 3,459.19 -0.15%

FTSE 100 - Risers

HSBC Holdings (HSBA) 565.20p 1.38%
Sky (SKY) 856.50p 0.65%
Relx plc (REL) 1,456.00p 0.62%
Standard Chartered (STAN) 636.40p 0.58%
Prudential (PRU) 1,365.50p 0.55%
Barclays (BARC) 170.05p 0.53%
Lloyds Banking Group (LLOY) 59.05p 0.32%
Berkeley Group Holdings (The) (BKG) 2,603.00p 0.31%
Merlin Entertainments (MERL) 481.60p 0.29%
Mediclinic International (MDC) 1,035.00p 0.29%

FTSE 100 - Fallers

Morrison (Wm) Supermarkets (MRW) 192.50p -2.43%
Travis Perkins (TPK) 1,665.00p -2.17%
Anglo American (AAL) 801.00p -2.02%
BHP Billiton (BLT) 1,019.50p -2.02%
Randgold Resources Ltd. (RRS) 7,250.00p -1.49%
Rio Tinto (RIO) 2,316.50p -1.45%
Persimmon (PSN) 1,807.00p -1.42%
London Stock Exchange Group (LSE) 2,763.00p -1.29%
Fresnillo (FRES) 1,670.00p -1.18%
Tesco (TSCO) 161.85p -0.89%

FTSE 250 - Risers

DFS Furniture (DFS) 271.90p 2.10%
SEGRO (SGRO) 454.60p 1.79%
Kennedy Wilson Europe Real Estate (KWE) 972.50p 1.41%
UK Commercial Property Trust (UKCM) 79.80p 1.27%
Marshalls (MSLH) 315.20p 1.16%
The Renewables Infrastructure Group Limited (TRIG) 104.90p 1.06%
NCC Group (NCC) 333.30p 0.91%
Mitchells & Butlers (MAB) 260.50p 0.89%
IMI (IMI) 1,069.00p 0.85%
Electrocomponents (ECM) 308.20p 0.82%

FTSE 250 - Fallers

Grafton Group Units (GFTU) 563.00p -7.40%
Restaurant Group (RTN) 379.80p -4.09%
Ocado Group (OCDO) 296.30p -3.49%
IP Group (IPO) 188.10p -3.04%
Safestore Holdings (SAFE) 356.00p -1.87%
Polypipe Group (PLP) 283.50p -1.84%
Petrofac Ltd. (PFC) 843.00p -1.81%
Halfords Group (HFD) 353.90p -1.59%
Hochschild Mining (HOC) 250.80p -1.53%
Evraz (EVR) 130.00p -1.52%