London open: Stocks little changed ahead of GDP data

London stocks were little changed in early trade as investors digested the latest Federal Reserve minutes and awaited first-quarter economic growth data for the UK.

At 0840 BST, the FTSE 100 was up 0.1% to 7,519.13, while the pound was up 0.1% versus the dollar at 1.2988.

Spreadex analyst Connor Campbell said: "Part of the reason the FTSE is lacking momentum this morning is likely the gains made by cable, which jumped 0.3% after Wednesday evening’s Fed meeting minutes revealed that the central bank sees it as ‘prudent’ to make sure the USA’s first quarter slowdown was just a blip before going ahead with its next – still likely June – rate hike.

"Nevertheless, the FTSE already spiked to an intraday peak of 7540 before settling back, meaning come closing time there could well be another broken record – that is, dependent on how the day’s key events pan out. The first test is second glimpse at the UK’s Q1 growth, which arrived last month at a lacklustre 0.3%. Analysts aren’t expecting a revision, a situation that in theory would soften up sterling and, therefore, work in the FTSE’s favour."

The latest minutes from the Fed released on Wednesday revealed that most members think a rate hike should happen soon as long as the economy continues to rebound from first-quarter weakness. The minutes also suggested the central bank members were in agreement on how the Fed can unwind its $4.5trn balance sheet. It's understood the Fed will implement caps on how much it will allow to drop off the balance sheet without reinvestment each month.

On the data front, BBA mortgage approvals are at 0930 BST, along with the first-quarter gross domestic product release.

Meanwhile, oil prices advanced ahead of the Opec meeting in Vienna, amid expectations of a nine-month extension to coordinated production cuts. West Texas Intermediate and Brent crude were up 0.9% to $51.81 a barrel and $54.47, respectively.

In corporate news, Central and Eastern European-focused low-cost airline Wizz Air flew higher as it reported record profit for the year to the end of March despite "challenging" conditions including low fares and increasing fuel prices. FTSE 100 peers easyJet and International Consolidated Airlines Group were also high risers.

Halfords gained ground despite reporting a drop in full-year profit, as it lifted its dividend and said cash generation remained strong.

Card Factory also advanced after saying it made "a good start to the year" as first-quarter like-for-like store sales were at the upper end of its targeted range of 1% to 3% growth.

On the downside, water company United Utilities fell as it upped its dividend 1.1% after a year where revenue and profit both leaked modestly lower but it remained confident of meeting its long-term targets.

Payment systems provider PayPoint was also in the red despite hailing "good growth" in its core retail networks as gross revenue rose 3.6% in the year to the end of March, while BT Group was weaker after a downgrade to 'underperform' at Exane BNP Paribas.

Petrofac shares plunged to their lowest since 2009 after suspending chief operating officer Marwan Chedid as the company is investigated by the Serious Fraud Office over bribery and money laundering allegations.

Pets at Home lost ground despite reporting 1.5% growth in like-for-like sales last year thanks to its vet services businesses.

Tate & Lyle was lower even as it posted an 85% jump in full-year pre-tax profit, underpinned by a weaker pound and a solid performance from both divisions.

B&M European traded lower despite saying annual profits rose 26%, while Inchcape declined after it said group revenue rose 18% at actual currency and 8.1% at constant currency in the fourth months to the end of April.

Morrisons, Bunzl, and Capita were all on the back foot as their stock went ex-dividend.

Market Movers

FTSE 100 (UKX) 7,519.13 0.06%
FTSE 250 (MCX) 19,976.73 0.13%
techMARK (TASX) 3,607.38 0.01%

FTSE 100 - Risers

easyJet (EZJ) 1,360.00p 1.19%
Hargreaves Lansdown (HL.) 1,402.00p 1.08%
Royal Mail (RMG) 433.10p 0.96%
International Consolidated Airlines Group SA (CDI) (IAG) 612.50p 0.91%
Smurfit Kappa Group (SKG) 2,144.00p 0.80%
Aviva (AV.) 534.00p 0.75%
Severn Trent (SVT) 2,572.00p 0.74%
3i Group (III) 846.50p 0.71%
Provident Financial (PFG) 3,122.00p 0.71%
National Grid (NG.) 1,089.00p 0.69%

FTSE 100 - Fallers

BT Group (BT.A) 310.80p -1.91%
TUI AG Reg Shs (DI) (TUI) 1,155.00p -1.53%
Morrison (Wm) Supermarkets (MRW) 242.60p -1.22%
DCC (DCC) 7,440.00p -1.06%
Anglo American (AAL) 1,072.50p -1.06%
Bunzl (BNZL) 2,444.00p -0.69%
Diageo (DGE) 2,309.50p -0.69%
BP (BP.) 475.45p -0.64%
Rio Tinto (RIO) 3,157.50p -0.57%
Carnival (CCL) 4,821.00p -0.50%

FTSE 250 - Risers

Wizz Air Holdings (WIZZ) 2,092.00p 7.50%
Intermediate Capital Group (ICP) 865.00p 7.19%
GVC Holdings (GVC) 796.50p 4.12%
IP Group (IPO) 146.20p 3.54%
Grainger (GRI) 269.00p 2.87%
QinetiQ Group (QQ.) 316.30p 2.43%
Rank Group (RNK) 216.50p 1.93%
Evraz (EVR) 197.00p 1.91%
Bankers Inv Trust (BNKR) 797.50p 1.85%
Countryside Properties (CSP) 301.80p 1.58%

FTSE 250 - Fallers

Petrofac Ltd. (PFC) 521.00p -15.28%
OneSavings Bank (OSB) 438.60p -6.18%
Acacia Mining (ACA) 290.30p -4.82%
Capita (CPI) 556.00p -3.72%
B&M European Value Retail S.A. (DI) (BME) 357.50p -3.04%
PayPoint (PAY) 961.50p -2.58%
Tate & Lyle (TATE) 773.50p -2.09%
Wood Group (John) (WG.) 731.00p -2.08%
Amec Foster Wheeler (AMFW) 523.00p -2.06%
Softcat (SCT) 410.60p -2.00%