London open: Stocks rise as investors eye US inflation data

(Sharecast News) - London stocks edged up in early trade on Thursday as investors digested a slew of UK earnings releases and looked to the release of key US inflation data. At 0900 GMT, the FTSE 100 was up 0.3% at 7,644.34.

Neil Wilson, chief market analyst at Finalto, said: "US PCE inflation is the key data point today and has the potential to move market expectations.

"Core PCE (obligatory reference to being the Fed's preferred gauge of inflation) is set to rise 0.4% month-on-month and 2.8% year-on-year in January. Slowing disinflation should help push out bets for rate cuts beyond May more firmly...quite frankly I find it hard to buy into a May cut anymore."

The PCE figures are due at 1330 GMT.

In equity markets, Haleon shot to the top of the FTSE 100 as the consumer health firm posted flat annual earnings but said it expected to grow revenue this year on higher demand.

Building materials group CRH advanced as it reported a jump in full-year earnings and revenue, supported by good underlying demand across its end-use markets.

Ocado also rose after saying it swung back to an underlying profit in 2023 as its joint venture with Marks & Spencer returned to profit.

British Airways and Iberia owner IAG flew higher after saying it more than doubled annual profit as demand continued to rebound from the effects of the Covid pandemic.

Howden Joinery was up even as it said profits fell more than expected last year as a weaker DIY and housing market hit the bottom line.

Power generation firm Drax rallied as it posted a surge in full-year profits and lifted its dividend as Britons struggled to pay their energy bills.

Serco pushed up as the government contractor said it expected slightly lower revenues this year and a 5% rise in profit as 2023 earnings rose 25%.

Man Group gained as it reported record assets under management even as annual profits fell on lower performance fees.

On the downside, Weir Group lost ground even as it delivered an 18% increase in adjusted profits in 2023 after beefing up margins more than expected as it pointed to further growth across the board this year.

Barclays, Diageo, Hargreaves Lansdown, Hays, Diversified Energy and Plus500 were all weaker as they traded without entitlement to the dividend.

Market Movers

FTSE 100 (UKX) 7,644.34 0.25% FTSE 250 (MCX) 19,066.10 0.28% techMARK (TASX) 4,377.95 0.58%

FTSE 100 - Risers

Haleon (HLN) 338.10p 7.69% CRH (CDI) (CRH) 6,600.00p 6.45% Ocado Group (OCDO) 515.00p 4.95% St James's Place (STJ) 523.20p 3.44% Rentokil Initial (RTO) 437.50p 2.77% Halma (HLMA) 2,320.00p 1.84% Admiral Group (ADM) 2,645.00p 1.77% Standard Chartered (STAN) 660.60p 1.76% International Consolidated Airlines Group SA (CDI) (IAG) 155.25p 1.60% Schroders (SDR) 390.90p 1.56%

FTSE 100 - Fallers

Weir Group (WEIR) 1,799.50p -4.10% Whitbread (WTB) 3,344.00p -3.38% Barclays (BARC) 163.22p -3.36% London Stock Exchange Group (LSEG) 8,714.00p -2.22% Vodafone Group (VOD) 67.61p -1.00% Reckitt Benckiser Group (RKT) 5,012.00p -0.99% Scottish Mortgage Inv Trust (SMT) 792.40p -0.95% Rolls-Royce Holdings (RR.) 367.10p -0.92% InterContinental Hotels Group (IHG) 8,476.00p -0.91% Smith & Nephew (SN.) 1,039.50p -0.86%

FTSE 250 - Risers

Howden Joinery Group (HWDN) 831.20p 7.58% Drax Group (DRX) 444.70p 6.16% Serco Group (SRP) 189.10p 5.52% Man Group (EMG) 250.60p 3.90% FDM Group (Holdings) (FDM) 405.50p 3.58% Target Healthcare Reit Ltd (THRL) 80.00p 3.23% Energean (ENOG) 1,009.00p 3.01% Ruffer Investment Company Ltd Red PTG Pref Shares (RICA) 271.00p 2.85% RHI Magnesita N.V. (DI) (RHIM) 3,746.00p 1.96% Redrow (RDW) 644.50p 1.82%

FTSE 250 - Fallers

Aston Martin Lagonda Global Holdings (AML) 169.30p -7.74% Diversified Energy Company (DEC) 929.00p -5.59% IP Group (IPO) 45.90p -4.87% Plus500 Ltd (DI) (PLUS) 1,743.00p -3.60% Dr. Martens (DOCS) 93.30p -2.81% Petershill Partners (PHLL) 167.00p -2.79% Spire Healthcare Group (SPI) 230.00p -2.75% Carnival (CCL) 1,104.00p -2.60% Oxford Instruments (OXIG) 2,130.00p -1.84% Mobico Group (MCG) 77.80p -1.77%