London open: Stocks fall ahead of US inflation reading

At 0850 GMT, the FTSE 100 was down 0.3% at 8,254.31.

The US consumer price index for November is due at 1330 GMT.

Kathleen Brooks, research director at XTB, said: "Today’s US CPI print for November is pivotal for markets. It is expected to show a 0.3% MoM gain for headline inflation, the annual rate is expected to rise to 2.7% from 2.6%, while the annual rate of core inflation is expected to remain at 3.3%.

"We do not think that the outcome of this report will detract from the Federal Reserve cutting interest rates next week, there is currently an 86% chance of a rate cut priced in by the Fed Fund Futures market.

"However, a hot inflation print, that pushes headline inflation well above estimates, could lead to questions being asked about the wisdom of cutting interest rates when inflation remains high, and before the new Trump administration comes in with policies that could trigger even more price pressure down the line."

In equity markets, BA and Iberia owner IAG flew higher as Deutsche Bank upgraded the shares to ‘buy’ from ‘hold’ and hiked the price target to 400p from 215p.

"With fuel set to be tailwind, we see scope for another year of ahead-of-consensus earnings growth in 2025," Deutsche said.

Consumer goods giant Reckitt Benckiser was also a high riser after an upgrade to ‘buy’ from ‘hold’ at HSBC.

British American Tobacco ticked up after confirming it remains on track to meet its 2024 financial guidance, driven by second-half acceleration from investments in US commercial actions, new category innovations, and inventory adjustments.

Kainos surged as it announced that chief executive Russell Sloan was stepping down with immediate effect and that long-standing CEO Brendan Mooney was returning to the role.

Endeavour Mining gained as it said it would conduct a definitive feasibility study on its Assafou-Dibibango gold project in Côte d’Ivoire after preliminary assessment met strategic targets and confirmed its potential to be a tier one asset.

Market Movers

FTSE 100 (UKX) 8,254.31 -0.31%
FTSE 250 (MCX) 20,897.86 -0.36%
techMARK (TASX) 4,651.51 -0.27%

FTSE 100 - Risers

International Consolidated Airlines Group SA (CDI) (IAG) 285.60p 1.28%
Reckitt Benckiser Group (RKT) 4,741.00p 0.81%
Standard Chartered (STAN) 992.60p 0.49%
Pearson (PSON) 1,243.50p 0.48%
British American Tobacco (BATS) 2,982.00p 0.44%
Smith (DS) (SMDS) 549.00p 0.37%
Imperial Brands (IMB) 2,592.00p 0.31%
Croda International (CRDA) 3,487.00p 0.29%
Auto Trader Group (AUTO) 826.60p 0.27%
Relx plc (REL) 3,701.00p 0.24%

FTSE 100 - Fallers

Ashtead Group (AHT) 5,204.00p -3.49%
JD Sports Fashion (JD.) 100.85p -1.71%
Frasers Group (FRAS) 623.50p -1.34%
Rio Tinto (RIO) 5,038.00p -1.27%
SEGRO (SGRO) 725.60p -1.25%
B&M European Value Retail S.A. (DI) (BME) 363.20p -1.14%
Associated British Foods (ABF) 2,179.00p -1.13%
CRH (CDI) (CRH) 7,708.00p -1.10%
Smith & Nephew (SN.) 981.60p -1.09%
Entain (ENT) 803.40p -1.03%

FTSE 250 - Risers

Kainos Group (KNOS) 864.00p 7.60%
Hilton Food Group (HFG) 935.00p 3.89%
SSP Group (SSPG) 192.80p 3.21%
Endeavour Mining (EDV) 1,533.00p 2.20%
Man Group (EMG) 213.20p 2.01%
JPMorgan Indian Investment Trust (JII) 1,068.00p 1.33%
Victrex plc (VCT) 1,122.00p 1.26%
PPHE Hotel Group Ltd (PPH) 1,320.00p 0.76%
Raspberry PI Holdings (RPI) 423.00p 0.62%
Bytes Technology Group (BYIT) 457.20p 0.57%

FTSE 250 - Fallers

PRS Reit (The) (PRSR) 102.80p -3.75%
Ocado Group (OCDO) 306.00p -2.52%
NB Private Equity Partners Ltd. (NBPE) 1,592.00p -2.33%
Baillie Gifford US Growth Trust (USA) 278.00p -2.11%
Renishaw (RSW) 3,320.00p -2.06%
Fidelity Emerging Markets Limited Ptg NPV (FEML) 676.50p -2.04%
Close Brothers Group (CBG) 233.40p -1.93%
Investec (INVP) 582.50p -1.85%
Ruffer Investment Company Ltd Red PTG Pref Shares (RICA) 269.50p -1.82%
Safestore Holdings (SAFE) 695.50p -1.77%