London midday: Stocks push higher as airlines gain

(Sharecast News) - London stocks had extended gains by midday on Wednesday, helped along by a strong showing from airlines, as investors turned their attention to Federal Reserve chair Jerome Powell's second day of testimony to Congress and this week's US inflation reading. The FTSE 100 was up 0.6% at 8,186.16.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "The FTSE 100 has opened on the front foot, taking cues from unruffled markets in the US despite a continued lack of clarity about when interest rate cuts will come.

"Fed Chair Jerome Powell offered few clues about when monetary policy will be eased during his congressional testimony. Policymakers are keeping a close eye on whether restrictive rates are squeezing enough demand out of the economy and, while the one hand, he said the Labour market had cooled, it was still 'robust.' There is still an expectation that a rate cut could come in September, but beyond that there is still much uncertainty.

"Nevertheless, US indices are still hanging close to record highs, with enthusiasm over AI possibilities and hopes for a soft landing for the economy still buoying sentiment. Eyes will now be drawn to tomorrow's consumer price inflation report for indications about the future direction of travel. Another shift lower in headline inflation is expected, which should help maintain the largely optimistic outlook. A reading of 3.1% year-on-year is expected in June, down from 3.3% in May."

In equity markets, BA and Iberia owner IAG flew to the top of the FTSE 100 after a double upgrade to 'overweight' at Morgan Stanley. Budget carrier easyJet and Wizz Air also rose.

Travis Perkins was up as it announced the appointment of Pete Redfern - the former boss of Taylor Wimpey - as its new chief executive.

Food outlet operator SSP Group surged as it held annual guidance after third-quarter sales rose 16%, driven by increasing demand for leisure travel. Like-for-like revenue was up 6%.

Crest Nicholson was on the front foot as it said it was "minded" to recommend Bellway's revised £720m takeover offer.

Bellway submitted a third non-binding offer earlier this month, valued at 273p per share, after two earlier proposals were rejected for undervaluing the business.

Under the terms of the latest approach, Crest Nicholson shareholders would receive 0.099 shares in Bellway for each one they own in Crest Nicholson, as well as a divided of 4p per share.

Grafton reversed earlier losses to trade up even as the building and DIY supplies group said revenue fell 4.4% in the first six months of the year amid challenging trading conditions as consumers held back on discretionary spending.

On the downside, Barratt Developments slumped as it warned that completions would be up to 7% lower in the current year, hit by higher mortgage costs.

Wetherspoons fell despite saying it expects profits to hit market expectations as it closes out its financial year with strong sales momentum.

Market Movers

FTSE 100 (UKX) 8,186.16 0.57% FTSE 250 (MCX) 20,808.08 0.79% techMARK (TASX) 4,783.10 0.59%

FTSE 100 - Risers

International Consolidated Airlines Group SA (CDI) (IAG) 179.35p 3.73% Entain (ENT) 663.20p 3.62% easyJet (EZJ) 479.60p 3.05% United Utilities Group (UU.) 1,071.00p 2.78% LondonMetric Property (LMP) 196.80p 2.77% Centrica (CNA) 139.90p 2.72% Sainsbury (J) (SBRY) 261.20p 2.67% Schroders (SDR) 376.00p 2.34% Vodafone Group (VOD) 72.60p 2.25% Severn Trent (SVT) 2,621.00p 2.22%

FTSE 100 - Fallers

Barratt Developments (BDEV) 483.20p -1.63% Smith (DS) (SMDS) 414.20p -1.38% Hikma Pharmaceuticals (HIK) 1,797.00p -0.72% Smurfit Westrock (DI) (SWR) 3,486.00p -0.68% Pershing Square Holdings Ltd NPV (PSH) 4,224.00p -0.52% Darktrace (DARK) 586.00p -0.34% GSK (GSK) 1,505.50p -0.30% HSBC Holdings (HSBA) 667.90p -0.24% Rio Tinto (RIO) 5,206.00p -0.23% Taylor Wimpey (TW.) 150.55p -0.10%

FTSE 250 - Risers

SSP Group (SSPG) 174.90p 11.83% Travis Perkins (TPK) 850.00p 6.12% Ocado Group (OCDO) 364.10p 4.36% W.A.G Payment Solutions (WPS) 65.60p 3.80% Pennon Group (PNN) 626.00p 3.64% Watches of Switzerland Group (WOSG) 401.00p 3.40% Wizz Air Holdings (WIZZ) 2,140.00p 3.18% Future (FUTR) 1,092.00p 3.12% Close Brothers Group (CBG) 492.20p 3.10% Spectris (SXS) 2,980.00p 3.04%

FTSE 250 - Fallers

Redrow (RDW) 683.00p -1.80% Caledonia Investments (CLDN) 3,470.00p -1.56% PPHE Hotel Group Ltd (PPH) 1,310.00p -1.13% Ascential (ASCL) 355.20p -0.95% Pagegroup (PAGE) 402.00p -0.94% Apax Global Alpha Limited (APAX) 153.60p -0.90% Baillie Gifford US Growth Trust (USA) 199.80p -0.84% 3i Infrastructure (3IN) 326.50p -0.76% BBGI Global Infrastructure S.A. NPV (DI) (BBGI) 131.00p -0.76% Ruffer Investment Company Ltd Red PTG Pref Shares (RICA) 269.00p -0.74%