London open: FTSE nudges up ahead of US inflation reading

At 0830 GMT, the FTSE 100 was up just 0.1% at 8,032.97.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "There’s some relief for the FTSE 100, with the index making gains in early trade after a disappointing start to the week. However, it’s still hovering around three-month lows as concerns linger about global growth. China’s economy continues to be a worry, with the authorities’ attempts to inject the economy with stimulus seen as underwhelming.

"The impact of a second Trump term and its implications for global trade is also being mulled over. Brent Crude is trading close to two-week lows, as investors digest OPEC’s re-assessment of demand for energy across the world next year. The hot enthusiasm which powered Wall Street higher following Trump’s re-election has cooled off. Investors are assessing the realities of governing for Trump’s second term, while the control of the House of Representatives is yet to be decided, with critical votes still being counted."

On the macro front, all eyes will be on the US consumer price index for October, which is due at 1330 GMT.

Streeter said: "The CPI report is expected to show an uptick in price pressures, bumping the annual rate back to 2.6% for October. Although the Fed’s preferred measure of inflation is the Core PCE reading, from the Personal Consumption Expenditures report, todays data is still expected to indicate how stubborn inflation might prove to be.

"It’s particularly pertinent given concerns that Trump’s tariff policies will be inflationary, increasing costs for American consumers, so if prices are already looking unruly, expectations will rise for Trump’s threats to be watered down."

In equity markets, Smiths Group jumped to the top of the FTSE 100 as it raised its growth and margin guidance and beefed up its share buyback programme after an "outstanding" first quarter.

Flutter Entertainment was a high riser as it slightly lifted its full-year revenue and EBITDA guidance. Ladbrokes owner Entain also gained.

SSE was in the black as it posted a rise in half-year earnings and said its long-standing chief executive was standing down. SSE posted adjusted operating profits of £860.2m in the six months to September end, up on last year’s £693.2m. On a reported basis, operating profit rose 40% to £902.8m.

Weapons maker Babcock surged as it reported a sharp jump in half-year profits and held annual guidance as geopolitical tensions increased demand from governments for military hardware.

Trainline advanced on the back of an upbeat 'Tempus' column in The Times.

Just Eat Takeaway shot up after agreeing to sell US business Grubhub to Wonder Group for $650m.

On the downside, Intermediate Capital and Experian were both weaker after results.

Market Movers

FTSE 100 (UKX) 8,032.97 0.09%
FTSE 250 (MCX) 20,461.45 0.16%
techMARK (TASX) 4,618.82 0.51%

FTSE 100 - Risers

Smiths Group (SMIN) 1,709.00p 12.29%
Flutter Entertainment (DI) (FLTR) 20,250.00p 5.09%
Entain (ENT) 766.20p 1.94%
AstraZeneca (AZN) 10,166.00p 1.76%
Lloyds Banking Group (LLOY) 54.34p 0.89%
Antofagasta (ANTO) 1,636.00p 0.83%
HSBC Holdings (HSBA) 699.60p 0.82%
Rio Tinto (RIO) 4,782.50p 0.79%
Admiral Group (ADM) 2,490.00p 0.73%
Glencore (GLEN) 379.00p 0.68%

FTSE 100 - Fallers

Intermediate Capital Group (ICG) 2,068.00p -7.68%
DCC (CDI) (DCC) 5,570.00p -1.76%
SEGRO (SGRO) 766.00p -1.39%
Smith & Nephew (SN.) 943.60p -1.32%
Experian (EXPN) 3,812.00p -1.29%
Persimmon (PSN) 1,263.00p -1.29%
3i Group (III) 3,360.00p -1.06%
Croda International (CRDA) 3,591.00p -0.94%
Halma (HLMA) 2,508.00p -0.91%
Relx plc (REL) 3,603.00p -0.85%

FTSE 250 - Risers

Babcock International Group (BAB) 574.00p 14.98%
Wood Group (John) (WG.) 56.30p 2.64%
Hochschild Mining (HOC) 219.50p 2.33%
Centamin (DI) (CEY) 143.80p 1.84%
Bridgepoint Group (Reg S) (BPT) 335.80p 1.51%
Raspberry PI Holdings (RPI) 334.70p 1.42%
Ibstock (IBST) 190.20p 1.39%
Trainline (TRN) 409.00p 1.34%
Harbour Energy (HBR) 252.10p 1.33%
Helios Towers (HTWS) 107.80p 1.13%

FTSE 250 - Fallers

Bank of Georgia Group (BGEO) 4,715.00p -2.28%
Grafton Group Ut (CDI) (GFTU) 940.00p -2.09%
Softcat (SCT) 1,645.00p -1.97%
Wizz Air Holdings (WIZZ) 1,411.00p -1.54%
W.A.G Payment Solutions (WPS) 81.00p -1.22%
Pennon Group (PNN) 527.00p -1.13%
The Global Smaller Companies Trust (GSCT) 165.00p -0.96%
Finsbury Growth & Income Trust (FGT) 849.00p -0.93%
Spectris (SXS) 2,556.00p -0.93%
Ocado Group (OCDO) 328.70p -0.90%