London open: Stocks little changed as investors digest UK inflation, China data

(Sharecast News) - London stocks were little changed in early trade on Wednesday as investors mulled a raft of data out of China and the latest UK inflation figures.
At 0850 BST, the FTSE 100 was down just 0.1% at 7,030.27.

Data out of China earlier showed that retail sales growth fell to 2.5% on the year in August, from 8.5% in July, coming in well below consensus expectations of 7.0%. Meanwhile, industrial production growth slowed to 5.3% in August from 6.4% the month before, versus expectations of 5.8%.

Fixed asset investment growth was 8.9% in August, down from 10.3% in July and more or less in line with consensus of 9.0%.

On home shores, figures from the Office for National Statistics showed consumer price inflation saw its biggest increase in August since records began in 1997.

CPI rose to 3.2% from 2% in July, coming in well above the Bank of England's 2% target and consensus expectations of 2.9%.

The ONS said the inflation rate was driven higher by higher food and restaurant prices, but that this is likely to be a temporary change. Eating out at restaurants last month cost more than it did last year, when the government's Eat Out to Help Out scheme was in place.

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said the surge in the headline rate of CPI inflation can largely be attributed to the anniversary of the one-month Eat Out to Help Out Scheme.

"Catering services inflation rocketed to 7.9% in August, from 1.4% in July, but will plunge in September," he said. "Notably, the 0.7% month-to-month increase in the core CPI only slightly exceeded its 0.6% average increase in all Augusts in the 2010s. The larger-than-normal month-to-month increase in the core CPI in August also was mainly due to a huge 4.9% rise in used car prices, which pushed up that component's inflation rate to an eye-catching 18.3%."

In equity markets, Redrow fell despite posting a rise in full-year profit as the housebuilder said it expects sales rates will return to historical averages over the course of the current financial year. In the year to 27 June, pre-tax profit increased to £314m from £140m the year before, with revenue up 45% to £1.94bn. Compared to pre-pandemic levels in 2019, revenue was down only 8%.

Trustpilot slumped as the online review website upgraded its full-year revenue growth guidance but posted a widening of its interim losses.

On the upside, oil exploration outfit Tullow Oil gushed higher after saying it swung to a profit in the first half and narrowing its production guidance upwards.



Market Movers

FTSE 100 (UKX) 7,030.27 -0.05%
FTSE 250 (MCX) 23,627.62 -0.25%
techMARK (TASX) 4,652.51 -0.28%

FTSE 100 - Risers

Evraz (EVR) 592.60p 1.16%
Kingfisher (KGF) 364.60p 1.11%
Imperial Brands (IMB) 1,542.00p 1.08%
DCC (CDI) (DCC) 6,266.00p 1.06%
Schroders (SDR) 3,837.00p 0.95%
Compass Group (CPG) 1,448.50p 0.87%
Legal & General Group (LGEN) 280.10p 0.79%
Abrdn (ABDN) 260.50p 0.77%
Aviva (AV.) 407.50p 0.74%
Reckitt Benckiser Group (RKT) 5,863.00p 0.72%

FTSE 100 - Fallers

Just Eat Takeaway.Com N.V. (CDI) (JET) 6,375.00p -3.51%
Johnson Matthey (JMAT) 2,710.00p -1.92%
Entain (ENT) 1,908.50p -1.80%
Rolls-Royce Holdings (RR.) 107.56p -1.47%
International Consolidated Airlines Group SA (CDI) (IAG) 140.08p -1.42%
Burberry Group (BRBY) 1,817.50p -1.33%
Smith & Nephew (SN.) 1,317.50p -1.31%
JD Sports Fashion (JD.) 1,137.50p -1.17%
BT Group (BT.A) 154.05p -0.96%
Intertek Group (ITRK) 5,390.00p -0.88%

FTSE 250 - Risers

Tullow Oil (TLW) 47.65p 5.89%
RIT Capital Partners (RCP) 2,660.00p 2.50%
The Renewables Infrastructure Group Limited (TRIG) 127.40p 2.08%
Greencoat UK Wind (UKW) 139.60p 1.75%
Bankers Inv Trust (BNKR) 117.60p 1.55%
Civitas Social Housing (CSH) 93.20p 1.41%
Diversified Energy Company (DEC) 113.40p 1.25%
Herald Investment Trust (HRI) 2,615.00p 1.16%
Virgin Money UK (VMUK) 191.10p 1.00%
Indivior (INDV) 195.00p 0.98%

FTSE 250 - Fallers

Trustpilot Group (TRST) 390.00p -5.89%
Travis Perkins (TPK) 1,761.50p -3.74%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,375.00p -3.51%
Ferrexpo (FXPO) 334.20p -2.74%
Petropavlovsk (POG) 20.02p -2.25%
JTC (JTC) 790.00p -2.11%
Redde Northgate (REDD) 411.50p -2.02%
easyJet (EZJ) 563.60p -2.02%
Genuit Group (GEN) 714.00p -1.92%
Network International Holdings (NETW) 349.80p -1.85%