FTSE 100 movers: LSE lifted by investor update; 3i hit by downgrade

London's FTSE 100 was down 0.2% to 7,498.71 in afternoon trade as investors digested data showing UK inflation climbed to a near four-year high.

London Stock Exchange was the standout gainer a day after an upbeat investor update event, as RBC Capital Markets and Credit Suisse upped their price targets on the stock. In addition, market participants pointed to the European Commission draft on clearing, which was not as bad as feared.

3i Group was on the back foot after Morgan Stanley downgraded the stock to 'equalweight' from 'overweight', saying it was time for profit taking. "While 3i's remaining PE portfolio provides upside earnings risk, we see better risk reward elsewhere in the asset management space," it said.

Merlin Entertainments was also weaker after it reported in-line trading fort the year so far but said it had seen a drop in UK visitors to attractions following the UK terrorist attacks.

Ashtead retreated despite proposing to hike its dividend by almost a quarter after it beat the City's profit forecast and foresaw another good year ahead.

BAE Systems fell as Goldman Sachs removed the stock from its Conviction List but kept it at 'buy'. "We remove BAE Systems from the Conviction List, given the stock’s strong performance and more muted potential for further upside." GS noted that since being added to the Conviction List in July 2016, the shares are up 28% versus the FTSE World Europe up 21% and the FTSE 100 up 14%.

Risers

London Stock Exchange Group (LSE) 3,559.00p 4.71%
Convatec Group (CTEC) 324.00p 3.02%
International Consolidated Airlines Group SA (CDI) (IAG) 605.50p 2.89%
easyJet (EZJ) 1,362.00p 2.79%
Smurfit Kappa Group (SKG) 2,331.00p 2.33%
Paddy Power Betfair (PPB) 8,540.00p 2.09%
TUI AG Reg Shs (DI) (TUI) 1,164.00p 1.93%
ITV (ITV) 185.50p 1.70%
Hargreaves Lansdown (HL.) 1,396.00p 1.68%
St James's Place (STJ) 1,198.00p 1.61%

Fallers

3i Group (III) 907.00p -2.32%
Merlin Entertainments (MERL) 494.00p -1.79%
Ashtead Group (AHT) 1,613.00p -1.71%
Imperial Brands (IMB) 3,533.00p -1.56%
Centrica (CNA) 197.70p -1.45%
Pearson (PSON) 714.50p -1.31%
BAE Systems (BA.) 659.50p -1.12%
Standard Chartered (STAN) 771.60p -1.03%
Randgold Resources Ltd. (RRS) 7,395.00p -0.80%
Rio Tinto (RIO) 3,221.00p -0.77%