London open: Stocks flat ahead of inflation data; Pearson surges but Merlin tanks
London stocks were flat in early trade on Tuesday as investors erred on the side of caution ahead of key inflation data.
At 0830 BST, the FTSE 100 was steady at 7,525.81, while the pound was up 0.1% against the dollar at 1.3258 and 0.3% firmer versus the euro at 1.1270.
On the data front, the retail price index, producer price index and consumer price index are all due at 0930 BST. Meanwhile, Bank of England governor Mark Carney is due to give a speech at 1115 BST.
Spreadex analyst Connor Campbell said: “Despite last night’s meeting between Theresa May and Jean Claude Juncker producing nothing more than vague promise to ‘accelerate’ negotiations, the pound is on the rise this Tuesday.
“That’s because investors are eagerly awaiting September’s inflation reading, which is set to see the consumer price index finally hit a five-year high of 3.0%. Such a reading would put even more pressure on the Bank of England to raise rates, though that hawkish urge may be tempered by the continued fall in real wages (set to be confirmed tomorrow) and a sharp month-on-month drop in retail sales (coming on Thursday).”
In corporate news, Pearson surged after saying it generated revenues in the first nine months of the year in line with expectations and it was on track to deliver in the upper half of management's guided range, with the educational publisher also fine-tuning its earnings guidance and promising a £300m share buyback.
However, Merlin Entertainments tanked after it reported comparable revenue was broadly flat as London sites were hit by bad weather and the impact of terror attacks.
Rio Tinto nudged up after cutting its copper guidance for the year as it reported a drop in mined copper in the third quarter.
Housebuilder Bellway was on the front foot after it reported a jump in full-year profit and revenue as demand for new housing remained strong, while challenger bank Virgin Money rallied after its third-quarter update came in as expected.
Smiths Group slipped as it appointed John Shipsey as chief financial officer designate with effect from Wednesday.
AstraZeneca was a touch weaker despite saying that the US regulator has accepted a supplemental biologics license application for its Imfinzi drug, granting it priority review status.
Moneysupermarket.com ticked lower after it posted a rise in third-quarter revenue overall, but revealed a drop in revenue from the money and home services divisions, while Mediclinic fell after its half-year trading statement.
Market Movers
FTSE 100 (UKX) 7,525.81 -0.02%
FTSE 250 (MCX) 20,166.50 -0.25%
techMARK (TASX) 3,548.98 -0.15%
FTSE 100 - Risers
Pearson (PSON) 663.00p 6.68%
Sainsbury (J) (SBRY) 249.10p 2.26%
Barclays (BARC) 191.10p 0.98%
Reckitt Benckiser Group (RB.) 7,075.00p 0.78%
Barratt Developments (BDEV) 682.50p 0.74%
Morrison (Wm) Supermarkets (MRW) 236.00p 0.64%
Persimmon (PSN) 2,840.00p 0.64%
United Utilities Group (UU.) 836.00p 0.60%
Taylor Wimpey (TW.) 204.10p 0.59%
Tesco (TSCO) 187.20p 0.56%
FTSE 100 - Fallers
Merlin Entertainments (MERL) 368.70p -18.01%
Mediclinic International (MDC) 658.50p -2.44%
Convatec Group (CTEC) 200.90p -2.00%
Standard Life Aberdeen (SLA) 437.40p -1.99%
3i Group (III) 957.00p -1.14%
Randgold Resources Ltd. (RRS) 7,405.00p -1.00%
Fresnillo (FRES) 1,421.00p -0.98%
Antofagasta (ANTO) 1,025.00p -0.87%
Whitbread (WTB) 3,996.00p -0.84%
TUI AG Reg Shs (DI) (TUI) 1,311.00p -0.83%
FTSE 250 - Risers
Virgin Money Holdings (UK) (VM.) 299.40p 3.71%
Elementis (ELM) 287.10p 2.57%
Ashmore Group (ASHM) 382.10p 1.62%
Bellway (BWY) 3,556.00p 1.51%
Hastings Group Holdings (HSTG) 316.30p 0.76%
Redefine International (RDI) 38.34p 0.74%
JD Sports Fashion (JD.) 360.60p 0.70%
Hiscox Limited (DI) (HSX) 1,373.00p 0.51%
Electrocomponents (ECM) 704.00p 0.50%
Metro Bank (MTRO) 3,580.00p 0.45%
FTSE 250 - Fallers
TalkTalk Telecom Group (TALK) 209.10p -2.52%
Rank Group (RNK) 229.50p -2.38%
Kaz Minerals (KAZ) 858.50p -1.94%
Hochschild Mining (HOC) 233.40p -1.93%
Pershing Square Holdings Ltd NPV (PSH) 991.00p -1.78%
Nostrum Oil & Gas (NOG) 406.40p -1.67%
Riverstone Energy Limited (RSE) 1,250.00p -1.57%
Sports Direct International (SPD) 388.20p -1.55%
Howden Joinery Group (HWDN) 408.20p -1.52%
Vedanta Resources (VED) 912.50p -1.46%