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(Alliance News) - Stocks in London were mixed at midday on Thursday, as guidance lifts from the likes Centrica and National Grid failed to boost the FTSE 100 into the green.
Traders were largely risk-averse ahead of the latest US inflation reading due at 1330 GMT. Inflation is expected to cool to 8.0% in October from 8.2% the previous month.
"With neither the Fed nor the labour market fully delivering - and one could argue they never were likely to - today's inflation report becomes ever more important. Another hot reading could be the latest in a growing list of setbacks for investors, who have been all too keen to buy at discounted levels in the hope the data rewards them," explained Oanda analyst Craig Erlam.
The FTSE 100 index was down 8.74 points, 0.1%, at 7,287.51 at midday on Thursday in London. The FTSE 250 was up 26.17 points, 0.1%, at 18,675.17, and the AIM All-Share was down 3.47 points, 0.4%, at 822.88.
The Cboe UK 100 was down 0.2% at 728.63. The Cboe UK 250 was up 0.1%, at 16,111.13, while the Cboe Small Companies was 0.1% lower at 12,775.90.
Stocks on the continent were also mixed. The CAC 40 index in Paris was down 0.4%, while the DAX 40 in Frankfurt was 0.1% higher.
Ahead of the US open, meanwhile, the Dow Jones Industrial Average was called up 0.3%, the S&P 500 up 0.4%, and the Nasdaq Composite up 0.6%.
In London, Centrica was the blue-chip index's top performer at midday, up 9.0%.
The British Gas owner said it expects annual results at the top end of expectations, and announced a share buyback of up to 5% of its issued share capital.
The company now expects 2022 adjusted earnings per share to come in at the top end of a 15.1p to 26.0p sell-side analyst range.
Adjusted EPS from continuing operations in 2021 amounted to 4.1p.
National Grid was up 0.7% after it lifted its interim dividend and upped guidance.
National Grid, which manages the UK's electricity infrastructure, posted a pretax profit of GBP1.57 billion in the six months to September 30, up 45% from GBP1.08 billion a year ago.
Looking ahead, National Grid upped its earnings per share growth target. It now expects EPS to rise in the middle of a new 6% to 8% compound annual growth rate range, lifted from 5% to 7%.
ConvaTec was up 6.7%. The medical products and technologies company said revenue in the 10 months to October 31 rose 2.4% year-on-year, slowing from a 3.6% hike in the first-half due to adverse effects from foreign exchange movements.
Nonetheless, ConvaTec upped its 2022 organic revenue growth guidance to a 5.4% to 5.8% range, from previous a 4.0% to 5.5% forecast.
Meanwhile, B&M European dropped 5.9%, the worst blue-chip performer at midday, as it reported a 17% drop in interim profit.
The retailer's pretax profit in the six months ended September 24 fell to GBP201 million from GBP241 million the previous year as its gross margins declined year-on-year.
Adjusted earnings before, interest, tax, depreciation and amortisation fell by 18% to GBP232 million from GBP282 million
For the financial year ending March 25, B&M still expects an adjusted Ebitda between GBP550 million and GBP600 million, down at least 3.1% from GBP619 million a year ago.
In the FTSE 250, Grafton jumped 8.4% as it backed yearly guidance and unveiled a new share buyback of up to GBP100 million.
"The favourable first half revenue trends in the Distribution businesses in Ireland and the Netherlands continued against the backdrop of solid underlying demand and building materials price inflation," the building materials firm and DIY retailer said.
Average daily like-for-like revenue grew 1.8% annually at constant currency during the period from July 1 and October 31. It was up 17% from three years earlier, before the onset of the pandemic.
IntegraFin was up 4.7%. The London-based investment platform said it expects to report adjusted pretax profit "moderately above" the top end of analyst consensus estimates.
This follows cost reductions resulting from accounting updates, the firm explained.
Elsewhere in London, Majedie Investments climbed 6.1% as it became a member of Marylebone Partners, entitling the firm to 7.5% of its residual profits and capital interest at no consideration cost.
In the foreign exchange space, the dollar clawed back some ground, after a bit of weakness so far this week.
The pound was quoted at USD1.1387 at midday, down from USD1.1416 at the London equities close on Wednesday, while the euro traded at USD0.9949, down from USD1.0049. Against the yen, the dollar was trading at JPY146.39, up slightly from JPY146.00.
"The dollar is no longer the high-flyer it was over the past months," said Antje Praefcke, analyst at Commerzbank.
"[US] Inflation is likely to have eased a little thus confirming the Fed's signals from the last week, which were pointing at a slightly slower speed of the rate cycle. Data in line with market expectations is unlikely to support the dollar notably any longer, on the contrary: if inflation eases even faster contrary than expects, EURUSD might rise towards 1.01 again," Praefcke continued.
A barrel of Brent fell to USD92.09 midday Thursday in London, down from USD93.74 late Tuesday, as China's zero-Covid policy added to demand concerns.
Gold was quoted at USD1,708.42 an ounce midday Thursday UK time, lower against USD1,713.97 at the London equities close on Wednesday.
By Heather Rydings; heatherrydings@alliancenews.com
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