London open: Stocks edge down as recession fears dent sentiment

At 0845 GMT, the FTSE 100 was down 0.3% at 7,469.93.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: "The risk-off sentiment more widely on stock markets this week remains hard to kick into touch as concerns about recession stay front and centre. The evil twins of recession and persistently higher inflation are lurking, keeping investors on edge.

"On Wall Street indices retreated for the fifth session in a row amid expectations that the Federal Reserve will have to keep hiking interest rates for longer, causing the economy to shrink."

In equity markets, Sports Direct and House of Fraser owner Frasers Group slumped as it posted a jump in interim profits but warned over a challenging backdrop.

British American Tobacco lost ground despite saying it was on course to meet full-year guidance, after strong growth in vaping products.

On the upside, Asia-focused Prudential was the top riser on the FTSE 100 as investors welcomed the easing of Covid restrictions in China.

Infrastructure group Balfour Beatty rallied after saying that annual profit was set to be ahead of expectations due to positive net interest income and lower tax charges.

Packaging company DS Smith also gained as it lifted its full-year outlook, hailing an "excellent" performance in the first half.

In broker note action, Travis Perkins was knocked lower by a downgrade to ‘underweight’ at JPMorgan, while LSE was hit by a downgrade to ‘neutral’ at UBS. But BA and Iberia owner IAG and Wizz Air flew higher after an upgrade to ‘buy’ at Bank of America Merrill Lynch.

Market Movers

FTSE 100 (UKX) 7,469.93 -0.26%
FTSE 250 (MCX) 18,929.82 0.00%
techMARK (TASX) 4,386.10 -0.26%

FTSE 100 - Risers

Prudential (PRU) 1,077.50p 2.13%
International Consolidated Airlines Group SA (CDI) (IAG) 135.30p 1.90%
Melrose Industries (MRO) 126.55p 1.20%
Flutter Entertainment (CDI) (FLTR) 11,885.00p 0.93%
Entain (ENT) 1,373.50p 0.92%
Unite Group (UTG) 929.50p 0.76%
Informa (INF) 620.80p 0.68%
F&C Investment Trust (FCIT) 911.00p 0.66%
BP (BP.) 466.85p 0.61%
Lloyds Banking Group (LLOY) 46.51p 0.59%

FTSE 100 - Fallers

Frasers Group (FRAS) 835.00p -6.70%
London Stock Exchange Group (LSEG) 7,608.00p -3.55%
Airtel Africa (AAF) 117.40p -3.14%
British American Tobacco (BATS) 3,317.00p -2.74%
Vodafone Group (VOD) 85.79p -2.13%
Intermediate Capital Group (ICP) 1,192.50p -1.97%
BT Group (BT.A) 115.05p -1.58%
Anglo American (AAL) 3,219.00p -1.56%
Dechra Pharmaceuticals (DPH) 2,694.00p -1.54%
Imperial Brands (IMB) 2,078.00p -1.19%

FTSE 250 - Risers

Wizz Air Holdings (WIZZ) 2,427.00p 6.17%
Trainline (TRN) 313.00p 3.99%
CMC Markets (CMCX) 233.50p 2.64%
Balfour Beatty (BBY) 339.80p 2.47%
Just Group (JUST) 76.95p 2.46%
Target Healthcare Reit Ltd (THRL) 79.10p 2.46%
Moonpig Group (MOON) 140.70p 2.18%
Paragon Banking Group (PAG) 510.00p 2.08%
Tritax Eurobox (GBP) (EBOX) 64.70p 1.57%
Darktrace (DARK) 316.70p 1.51%

FTSE 250 - Fallers

Travis Perkins (TPK) 907.20p -4.22%
Synthomer (SYNT) 123.80p -4.03%
Liontrust Asset Management (LIO) 1,026.00p -2.84%
Victrex plc (VCT) 1,600.00p -2.79%
Drax Group (DRX) 605.50p -2.34%
Hochschild Mining (HOC) 64.00p -2.29%
SDCL Energy Efficiency Income Trust (SEIT) 103.00p -2.09%
Sirius Real Estate Ltd. (SRE) 82.10p -1.91%
Energean (ENOG) 1,251.00p -1.73%
Investec (INVP) 475.40p -1.72%