London midday: Stocks steady after China data, UK inflation

15 September 2021

(Sharecast News) - London stocks were still little changed by midday on Wednesday as investors mulled a raft of disappointing data out of China and the latest UK inflation figures.
The FTSE 100 was up just 0.1% at 7,042.11, having been a smidgen weaker earlier.

Data released out of China 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 <em>Office for National Statistics</em> showed consumer price inflation saw its biggest increase in August since records began in.

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.

Russ Mould, investment director at <em>AJ Bell</em>, said: "Surging UK inflation figures and more volatility in Asian shares didn't upset the apple cart too much on Wednesday morning.

"Weakness among airlines and Burberry, whose fortunes are closely tied to China, reflected a shift in investors' concerns from the risks of the economy overheating to the recovery being knocked off course.

"This follows some weak Chinese economic data as it, like many countries across the world, wrestles with the more infectious Delta variant of Covid.

"Helping to keep the FTSE 100 afloat were some more stodgy defensive businesses such as catering giant <strong>Compass</strong>, consumer goods firm <strong>Reckitt Benckiser</strong> and tobacco maker <strong>Imperial Brands</strong>."

In equity markets, oil exploration outfit <strong>Tullow Oil</strong> gushed higher after saying it swung to a profit in the first half and narrowing its production guidance upwards.

<strong>Redrow</strong> ticked up after 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.

On the downside, <strong>Trustpilot</strong> slumped as the online review website upgraded its full-year revenue growth guidance but posted a widening of its interim losses.

<strong>Just Eat</strong> was under the cosh following news that rival <strong>Deliveroo</strong> has partnered with <strong>Amazon</strong> to offer members free delivery.

<strong>Market Movers</strong>

FTSE 100 (UKX) 7,042.11 0.11%
FTSE 250 (MCX) 23,619.09 -0.29%
techMARK (TASX) 4,650.50 -0.33%

<strong>FTSE 100 - Risers</strong>

BP (BP.) 306.50p 2.17%
Lloyds Banking Group (LLOY) 44.46p 2.09%
Imperial Brands (IMB) 1,555.00p 1.93%
Antofagasta (ANTO) 1,454.00p 1.86%
Evraz (EVR) 595.20p 1.60%
Reckitt Benckiser Group (RKT) 5,907.00p 1.48%
Kingfisher (KGF) 365.90p 1.47%
NATWEST GROUP PLC ORD 100P (NWG) 210.90p 1.35%
Glencore (GLEN) 340.30p 1.31%
Royal Dutch Shell 'B' (RDSB) 1,469.60p 1.27%

<strong>FTSE 100 - Fallers</strong>

Just Eat Takeaway.Com N.V. (CDI) (JET) 6,382.00p -3.41%
Johnson Matthey (JMAT) 2,683.00p -2.90%
Smith &amp; Nephew (SN.) 1,298.50p -2.73%
Rolls-Royce Holdings (RR.) 106.78p -2.18%
Burberry Group (BRBY) 1,805.00p -2.01%
International Consolidated Airlines Group SA (CDI) (IAG) 139.40p -1.90%
Whitbread (WTB) 3,224.00p -1.86%
Informa (INF) 512.40p -1.84%
Croda International (CRDA) 9,068.00p -1.52%
InterContinental Hotels Group (IHG) 4,553.00p -1.39%

<strong>FTSE 250 - Risers</strong>

Tullow Oil (TLW) 46.35p 3.00%
The Renewables Infrastructure Group Limited (TRIG) 127.60p 2.24%
Civitas Social Housing (CSH) 93.90p 2.18%
Auction Technology Group (ATG) 1,518.00p 2.15%
888 Holdings (888) 421.20p 2.03%
Indivior (INDV) 196.80p 1.92%
Greencoat UK Wind (UKW) 139.80p 1.90%
Energean (ENOG) 777.50p 1.57%
RIT Capital Partners (RCP) 2,635.00p 1.54%
Avon Protection (AVON) 1,791.00p 1.42%

<strong>FTSE 250 - Fallers</strong>

Trustpilot Group (TRST) 385.20p -7.05%
Travis Perkins (TPK) 1,760.50p -3.80%
Restaurant Group (RTN) 117.00p -3.47%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,382.00p -3.41%
Cineworld Group (CINE) 62.86p -3.02%
Cairn Energy (CNE) 175.90p -2.71%
easyJet (EZJ) 560.20p -2.61%
Safestore Holdings (SAFE) 1,099.00p -2.40%
Ferrexpo (FXPO) 336.00p -2.21%
C&amp;C Group (CDI) (CCR) 230.60p -2.21%