(Alliance News) - The FTSE 100 opened marginally higher on Thursday morning as market attention shifted nervously to key inflation prints from the US and EU later in the day.
The FTSE 100 index opened up just 0.29 of a point at 7,473.96. Meanwhile, the FTSE 250 was up 65.74 points, or 0.4%, at 18,630.26. The AIM All-Share was down 0.22 of a point at 741.92.
The Cboe UK 100 was marginally lower at 744.32, the Cboe UK 250 was up 0.5% at 16,295.21, and the Cboe Small Companies was flat at 13,034.73.
A flash inflation print for the EU at 1000 BST and the US personal consumption expenditures index - one of the US Federal Reserve's preferred inflationary gauges - will be released at 1330 BST.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said the preliminary eurozone data will be closely watched, given that a snapshot out yesterday showed inflation in Germany and Spain was not cooling as fast as hoped.
"Inflationary pressures are still staying stubborn even though the downturn is intensifying especially in Germany. That's posing a big headache for the European Central Bank and if the eurozone wide inflation reading comes in hotter than expected, it is set to increase the chances of a rate hike in September, despite the risks of recession," she said.
In London, Persimmon was among the top performers in the FTSE 100 on Thursday morning, up 1.1%, despite news that the housebuilder will be removed from London's flagship index from the market open on Monday, September 18.
The change ends Persimmon's roughly 10-year spell among London's blue-chips.
In the FTSE 250, Grafton added 2.5%.
The building materials distributor and DIY retailer reported a decline in half-year pretax profit but remained confident that its full-year adjusted operating profit will be in line with analyst expectations of GBP202.6 million.
In the six months ended June 30, the company reported a pretax profit of GBP93.6 million, down from GBP132.4 million the previous year.
The fall in profit came as Grafton recorded just GBP1.1 million in property profits in the half compared to GBP18.5 million the year prior, and as its finance expenses climbed to GBP12.5 million from GBP9.8 million.
More positively, revenue ticked up to GBP1.19 billion from GBP1.15 billion.
The company also announced its intention to start a new share buyback programme for up to GBP50.0 million. The news comes as the company completes a buyback that began on May 12 for a total of GBP50.0 million.
Elsewhere in London, PPHE Hotel jumped 4.6% after it reported a strong performance in the first half of 2023, boasting "record" interim revenue and a return to pretax profit.
The hotel and resort operator swung to an interim pretax profit of GBP2.0 million from a loss of GBP26.1 million the year prior.
This came as the company reported "record" revenue of GBP180.0 million, up 59% from GBP113.2 million the previous year and up 16% from GBP155.3 million in the same half of 2019.
PPHE said it now entering its strongest half of the year and said it is confident in its long-term growth.
It reiterated its expectations for the full year, expecting revenue of GBP400 million and earnings before interest, tax, depreciation and amortisation of GBP120 million.
On AIM, Ovoca Bio plunged 43% after it announced the top-line results from its phase 2 dose-ranging study assessing Orenetide did not show statistically significant superiority versus placebo on its co-primary endpoints.
The study evaluated the effect of a range of daily administered Orenetide doses on a lack or loss of sexual desire in 667 women.
In European equities on Thursday, the CAC 40 in Paris was down 0.1%, while the DAX 40 in Frankfurt was up 0.4%.
In Tokyo on Thursday, the Nikkei 225 index closed 0.9% higher. The S&P/ASX 200 in Sydney closed up 0.1%.
In China, the Shanghai Composite closed down 0.6%, while the Hang Seng index in Hong Kong closed 0.7% lower.
China's biggest developer Country Garden faces a crunch vote on extending debt repayment terms that could determine whether it defaults, plunging the country's property market deeper into turmoil.
The firm has racked up debts of more than USD150 billion and this week reported a record CNY48.9 billion - around USD6.7 billion - loss for the first six months of the year.
Country Garden warned Wednesday that it faced a default if its financial performance "continues to deteriorate", adding it "felt deeply remorseful for the unsatisfactory performance".
Bondholders are due to conclude a crunch vote Thursday on whether to extend repayment on a keynote worth USD535 million.
Creditors have until 2200 CST, or 1500 BST, to decide on a proposal to postpone this payment, according to Bloomberg.
In the US on Wednesday, Wall Street ended higher, with the Dow Jones Industrial Average closing up 0.1%, the S&P 500 up 0.4% and the Nasdaq Composite up 0.5%.
Stocks were buoyed as softer economic data in the US painted a picture of a slowing economy, raising the likelihood that US interest rates have peaked.
According to an updated estimate from the US Bureau of Economic Analysis, the US economy grew less than initially expected in the second quarter of 2023. In addition, data from ADP showed that job growth in the US private sector slowed significantly in August.
The dollar staged a small recovery on Thursday morning, after initially slumping in the wake of the weaker-than-expected US data on Wednesday.
The pound was quoted at USD1.2720 at early on Thursday in London, down from USD1.2732 at the close on Wednesday. The euro stood at USD1.0902, lower against USD1.0931.
Against the yen, the dollar was trading at JPY145.76, virtually unchanged from JPY145.75.
Further gains for the dollar were capped as investors waited for the all-important US non-farm payrolls figures on Friday. Investors are hoping for further signs that the US labour market is cooling.
Brent oil was quoted at USD85.36 a barrel at early in London on Thursday, up from USD84.70 late Wednesday. Gold was quoted at USD1,945.11 an ounce, a touch higher against USD1,945.03.
Still to come on Thursday's economic calendar, the US weekly unemployment claims report will be published at 1330 BST.
By Heather Rydings, Alliance News senior economics reporter
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Persimmon (PSN)
Grafton Group (GFTU)
Ovoca Bio (OVB)