LONDON MARKET MIDDAY: Housebuilders, Reckitt Help FTSE Ahead Of Powell

(Alliance News) - Sentiment on Thursday was boosted by dovish comments from US Federal Reserve Chair Jerome Powell on Wednesday, with markets now eyeing his second day in front of Congress. Housebuilders and Reckitt Benckiser were helping to support the FTSE 100, while Diploma was the top performer in the FTSE 250 in the wake of a bolt-on acquisition.The large-cap index was just 1.27 points higher at 7,531.96 Thursday midday. The mid-cap FTSE 250 index was up 36.68 points, or 0.2%, at 19,456.06, while the AIM All-Share was up 0.1% at 915.67.The Cboe UK 100 index was down 0.1% at 12,760.71. The Cboe UK 250 was flat at 17,346.69, while the Cboe UK Small Companies was up 0.3% at 11,271.46.In mainland Europe, the CAC 40 index in Paris and DAX 30 in Frankfurt were up 0.1% and down 0.1% respectively in afternoon trade.Wall Street is pointed to a positive open ahead of Powell's second day in front of Congress, with the Dow Jones and S&P 500 both seen up 0.3% and the Nasdaq called 0.4% higher."It's safe to say that investors were pleased with Jerome Powell's first day of testimony on Wednesday, with equity markets jumping on his dovish assessment," said Craig Erlam at Oanda. "Wednesday's message was clear, the data is softening - particularly on the inflation side - and downside risks are significant," said Erlam.Not shying away from market expectations of an interest rate cut later this month, Powell said many central bankers believed the case for lower rates "had strengthened" last month given rising "crosscurrents" in the economy.In his highly anticipated testimony to Congress, Powell repeatedly stressed the importance of keeping the US economy growing to ensure its benefits reach Americans left at the margins and said the central bank will deploy all its tools to support continued expansion."The second day of testimony is often largely a rerun of the first, from a monetary policy perspective. That won't stop traders keenly watching for signals though, particularly around the prospect for more cuts this year," the Oanda analyst commented. Powell will start the second day of his testimony at 1500 BST.Elsewhere in the economic calendar on Thursday, the European Central Bank releases accounts from its last monetary policy meeting at 1230 BST and US inflation readings are at 1330 BST.US CPI is seen easing to 1.6%, according to consensus cited by FXStreet, in June from 1.8% in May. On a monthly basis, however, consumer prices are seen rising 0.2% versus a 0.1% gain the previous month.France on Thursday became the first major economy to impose a tax on digital giants, with parliament passing the legislation in defiance of a probe ordered by President Donald Trump that could trigger reprisal tariffs.The new law aims at plugging a taxation gap that has seen some internet heavyweights paying next to nothing in countries where they make huge profits.The legislation - dubbed the GAFA tax - an acronym for Google, Apple Inc, Facebook Inc and Amazon.com Inc - was passed by a simple show of hands in the Senate upper house after previously being passed by the National Assembly lower chamber. In London, housebuilders were among the top performing stocks on Thursday."UK homebuilders continue to find favour after Barratt's update yesterday. The sector has received a boost after a period of weakness in construction, although those investors moving in now will have to be mindful of the potential disruptions arising from a no-deal Brexit," said Chris Beauchamp, chief market analyst at IG. Barratt Developments was the best performer in the FTSE 100, up 3.7%, while Taylor Wimpey advanced 1.5% and Berkeley Group up 1.2%.Another blue-chip riser was Reckitt Benckiser, up 2.4% after agreeing to pay USD1.4 billion to settle a probe into former pharmaceuticals arm Indivior.The FTSE 100-listed consumer goods firm will pay up to USD1.4 billion to fully resolve all federal investigations into Reckitt in connection with Indivior's indictment and claims relating to state Medicaid programs for those states choosing to participate in the settlement.In September 2016, 35 US states and the District of Columbia filed a civil complaint against Indivior in relation to its ongoing legal privilege dispute with the US Federal Trade Commission. Indivior was wholly demerged from Reckitt, which makes Dettol disinfectant and Strepsils lozenges, in 2014. Suboxone is an opioid used to treat opioid addiction, acute pain, and chronic pain.Separately, Indivior shot up 26% after upgrading its guidance following a stronger than anticipated first half. Indivior - which did not mention the Reckitt announcement in its own on Thursday - now expects net revenue in a range of USD670 million to USD720 million, a sharp increase from previous forecasts of USD525 million to USD575 million. Net income is expected between USD80 million to USD130 million. Prior to this, the company had anticipated anything from a loss of USD40 million to income of USD10 million. The primary driver has been a market share outperformance from Suboxone Film, the company explained. FTSE 250-listed technical products and services firm Diploma helped to support the index after agreeing to buy a gasket and fluid-sealing products maker.Virginia Sealing Products specialises in customers who process and transport hazardous materials but also operates in markets such as power generation, pulp & paper, and marine. Diploma is paying GBP56.0 million in cash upfront, but it may also pay a further GBP8.0 million if VSP meets various operating profit targets. Elsewhere on the Main Market, McBride sank 12% on a profit warning.Trading in the second half of McBride's year ended June was "marginally" weaker than expected, the firm said, with revenue down 1.7% on the first half of the year. France and the UK were especially weak.This weakness has continued into McBride's new financial year, "mostly" due to slow demand in a number of markets as well as the effect of some lost contracts due to price increases. As a result, earnings in the year ending June 2020 are set to fall on McBride's recently ended year.