London midday: Mining, oil and banking stocks provide a boost

Sharecast - The FTSE 100 was up 0.8% on the day at 7,587.87 by the midday mark.

Overnight, official government figures revealed that China fell into deflation in July, with consumer prices falling 0.3% year-on-year (after a 0.2% gain in June) on the back of a sharp drop in food inflation from +2.3% to -1.7%,.

“​​The sharp contraction in Chinese exports undoubtedly provided a warning sign over weak global demand, whereas today's -0.3% deflation reading serves to highlight weak consumer demand within China itself,” said chief market analyst Joshua Mahony from Scope Markets. “Nonetheless, there are many that will see this as a positive signal given the potential implications for a more accommodative policy stance from the PBoC and Chinese government.”

US stock futures were pointing to a brighter session on Wall Street later on, as equity indices look set to recover some ground after recent losses. The S&P 500 has declined for five out of the six previous trading sessions.

There were no other major economic data releases scheduled for Wednesday, with all eyes turning to US inflation and jobless claims data on Thursday, and UK GDP figures on Friday.

Coca-Cola HBC pops as guidance lifted

Coca Cola HBC (LON:CCH) was trading higher after lifting its full-year forecasts. The company said it was on track for organic growth of 6-7% for the year, up from previous guidance of 5-6%.

Mining stocks were clawing back losses after a poor showing on Tuesday. Glencore (LON:GLEN), which disappointed the market yesterday with its first-half results, was among the best performers, along with Anglo American (LON:AAL), Fresnillo (LON:FRES) and Antofagasta (LON:ANTO).

Oil giants BP (LON:BP) and Shell (LON:RDSa) were also on the rise as crude prices reached their highest levels this year. WTI futures were above $83, while Brent rose reached a high of $87.

Banks were rebounding after the Italian government came out to clarify details of its windfall tax on domestic bank profits. Monday evening’s surprise announcement by the government to slap a 40% tax on banks’ net interest margin sent tremors across the continent, but it has now been clarified that the levy won’t exceed 0.1% of an institution’s assets. Barclays (LON:BARC), Lloyds (LON:LLOY) and Natwest (LON:NWG) were all higher.

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Leading the fallers on the FTSE 100 was insurance group Hiscox (LON:HSX), dropping 7% despite reporting a sharp jump in profits in the first half. Analysts pointed out that results failed to meet expectations, noting slower growth in the retail division.

Meanwhile, shares of gambling giant Flutter Entertainment dropped into the red despite the company meeting expectations with its first-half results that showed 38% revenue growth and a swing to profitability. The stock has risen nearly 30% so far this year.

On the FTSE 250, TP ICAP (LON:NXGN) impressed after beating expectations with its half-year report. The liquidity and data specialist reported an underlying operating profit of £163m, compared with consensus estimates of £158m.

Hill and Smith, the infrastructure and transport group, also surpassed analysts’ estimates with its interim results, while office space firm CLS Holdings disappointed after swinging to a big loss in the first half due to a decline in property valuations.

Market Movers

FTSE 100 (UKX) 7,589.87 0.83%

FTSE 250 (MCX) 18,933.37 0.49%

techMARK (TASX) 4,358.29 0.28%

FTSE 100 - Risers

InterContinental Hotels Group (IHG (LON:IHG)) 5,950.00p 2.76%

Abrdn (ABDN) 198.05p 2.62%

Glencore (GLEN) 455.70p 2.50%

BP (BP.) 490.55p 2.20%

BT Group (LON:BT.A) 114.80p 2.18%

Barclays (BARC) 149.90p 1.92%

Shell (SHEL) 2,412.50p 1.71%

Weir Group (LON:WEIR) 1,829.50p 1.67%

Antofagasta (ANTO) 1,606.00p 1.48%

Prudential (LON:PRU) 1,025.50p 1.48%

FTSE 100 - Fallers

Hiscox Limited (DI) (HSX) 1,037.00p -6.83%

Flutter Entertainment (CDI) (FLTR) 14,475.00p -2.88%

Severn Trent (LON:SVT) 2,434.00p -1.66%

United Utilities Group (UU.) 961.20p -1.40%

Entain (LON:ENT) 1,357.00p -1.02%

Convatec Group (CTEC (LON:CTEC)) 225.20p -0.88%

London Stock Exchange Group (LON:LSEG) 8,212.00p -0.75%

Persimmon (LON:PSN) 1,125.50p -0.71%

WPP (LON:WPP) 790.00p -0.35%

Croda International (CRDA) 5,514.00p -0.29%

FTSE 250 - Risers

IWG (IWG) 164.60p 8.65%

TP Icap Group (TCAP) 167.60p 8.48%

Hill and Smith (HILS) 1,672.00p 6.50%

Future (FUTR (LON:FUTR)) 781.50p 4.90%

W.A.G Payment Solutions (WPS) 98.00p 4.26%

Jupiter Fund Management (JUP) 105.50p 4.25%

Wizz Air Holdings (LON:WIZZ) 2,406.00p 3.75%

Quilter (QLT) 83.10p 2.78%

Edinburgh Worldwide Inv Trust (EWI) 150.60p 2.45%

Dr. Martens (DOCS) 149.40p 2.19%

FTSE 250 - Fallers

CLS Holdings (CLI) 135.20p -5.72%

Lancashire Holdings Limited (LRE) 579.50p -3.34%

TUI (LON:TUIT) AG Reg Shs (DI) (TUI) 567.00p -2.49%

Just Group (JUST) 84.80p -2.19%

Baltic Classifieds Group (BCG) 198.80p -1.83%

Pennon Group (LON:PNN) 650.00p -1.74%

Apax Global Alpha Limited (APAX) 170.20p -1.62%

Bellway (LON:BWY) 2,186.00p -1.35%

Crest Nicholson Holdings (LON:CRST) 210.00p -1.32%

NB Private Equity Partners Ltd. (NBPE) 1,580.00p -1.25%

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