London open: Stocks in the black as miners, Unilever rally

London stocks rose in early trade on Tuesday, bucking the broader trend as strength in the mining sector and some well-received results from Unilever helped to underpin the mood.

At 0850 BST, the FTSE 100 was up 0.5% at 7,342.46, with the US Federal Reserve’s two-day policy meeting set to kick off later.

CMC Markets analyst Michael Hewson said: "It’s been a mixed start to the day for European markets with the FTSE100 edging higher after some positive earnings updates, while markets in Europe are under pressure as investors absorb what yesterday’s news from Gazprom is likely to mean when it comes to gas supplies over the next few days."

As far as the Fed is concerned, Rabobank expects the target range for the federal funds rate to be increased by 75 basis points to 2.25-2.50%. Meanwhile, the balance sheet reduction schedule is expected to remain unchanged.

"There will be no update of economic projections, so we only have the formal statement and Powell’s press conference to look forward to. While FOMC speakers have pushed against a 100 bps rate hike this month, Powell may shed more light on the rate path beyond July, especially in relation to the stronger-than-expected CPI print on July 13," it said.

"With headline inflation rising to 9.1% in June from 8.6% in May, against a Bloomberg consensus expectation of 8.8%, markets initially increased their speculations on a 100 bps hike in July. However, although the FOMC may not be ready to take a 100 bps hike, they may want to take a few more big rate steps in the remainder of the year."

In equity markets, miners were the standout gainers as metals prices rose, with Antofagasta, Anglo American, Rio and Glencore all higher.

Consumer goods giant Unilever rose after it reported 8.1% growth in first-half underlying sales as it lifted prices to tackle higher costs, and raised it sales growth guidance for the year.

Catering group Compass rallied as it said underlying revenues had more than doubled in the three months ended 30 June, with all three of its trading regions operating above 2019 levels.

Budget airline easyJet flew higher after saying it currently expects fourth-quarter capacity to be around 90% of pre-Covid pandemic levels with load factors above 90% as it narrowed third-quarter losses. The company reported a group headline loss before tax for the three months to June 30 of £114m, down from the £318m last year.

Market Movers

FTSE 100 (UKX) 7,342.46 0.49%
FTSE 250 (MCX) 19,704.48 -0.50%
techMARK (TASX) 4,377.54 -0.06%

FTSE 100 - Risers

Unilever (ULVR) 4,026.00p 2.80%
Antofagasta (ANTO) 1,099.50p 2.28%
Anglo American (AAL) 2,789.50p 2.22%
Harbour Energy (HBR) 349.60p 1.89%
Rio Tinto (RIO) 4,936.50p 1.78%
BAE Systems (BA.) 794.00p 1.69%
Centrica (CNA) 89.84p 1.58%
Glencore (GLEN) 439.40p 1.52%
BP (BP.) 392.05p 1.38%
Compass Group (CPG) 1,868.50p 1.27%

FTSE 100 - Fallers

Kingfisher (KGF) 253.60p -5.41%
Howden Joinery Group (HWDN) 632.80p -3.27%
RS Group (RS1) 960.00p -2.88%
Sainsbury (J) (SBRY) 215.10p -2.76%
B&M European Value Retail S.A. (DI) (BME) 409.60p -2.68%
JD Sports Fashion (JD.) 135.25p -2.63%
Associated British Foods (ABF) 1,656.50p -2.30%
Tesco (TSCO) 258.80p -2.27%
Next (NXT) 6,536.00p -1.95%
Bunzl (BNZL) 2,962.00p -1.89%

FTSE 250 - Risers

Tullow Oil (TLW) 49.12p 5.14%
Bridgepoint Group (Reg S) (BPT) 237.20p 3.85%
Wizz Air Holdings (WIZZ) 1,960.00p 1.66%
Convatec Group (CTEC) 226.00p 1.62%
Balanced Commercial Property Trust Limited (BCPT) 118.60p 1.37%
Energean (ENOG) 1,154.00p 1.23%
Capital & Counties Properties (CAPC) 148.60p 1.16%
Fidelity China Special Situations (FCSS) 254.50p 0.99%
Templeton Emerging Markets Inv Trust (TEM) 151.40p 0.93%
Wood Group (John) (WG.) 151.20p 0.90%

FTSE 250 - Fallers

Travis Perkins (TPK) 962.20p -6.90%
Marks & Spencer Group (MKS) 138.45p -4.78%
Dunelm Group (DNLM) 839.00p -3.95%
Diploma (DPLM) 2,566.00p -3.39%
ASOS (ASC) 1,087.00p -3.03%
Games Workshop Group (GAW) 7,310.00p -2.92%
Aston Martin Lagonda Global Holdings (AML) 456.60p -2.77%
Auction Technology Group (ATG) 972.00p -2.70%
4Imprint Group (FOUR) 3,120.00p -2.50%
Kainos Group (KNOS) 1,193.00p -2.45%