London close: FTSE nudges down; benign US inflation report in focus

(Sharecast News) - London stocks ended just in the red on Wednesday, unmoved by a benign inflation report that increased the chances of the Federal Reserve leaving rates on hold next month.

The FTSE 100 closed down 0.1% at 10,833.15, while Brent crude was flat at $88.87 a barrel and West Texas Intermediate was up 0.1% at $83.31.

Figures released earlier showed that US consumer price inflation was as expected in July, with headline prices up 0.1% month-on-month, while core CPI - which excludes food and energy - rose 0.2% on the month. This took the year-on-year rate down to 3.4% from 3.5% for headline inflation, while core inflation was 2.5%, down from 2.6%.

Chris Beauchamp, chief market analyst at IG, said: "Stock markets haven't exactly raced away in the wake of the CPI figures, but it has at least meant they have swerved a nasty afternoon of selling.

"A hot CPI, combined with thinner August liquidity and a still skittish investor mindset, could have seen the beginnings of a rout. That has been avoided for now, and while a September rate hike looks less likely than it did a few hours ago, the ongoing hawkish views of much of the FOMC means a rebellion against the new chairman and against the president still cannot be ruled out."

Meanwhile, developments in the Middle East remained in focus, as fresh attacks on shipping added to uncertainty over the reopening of the Strait of Hormuz.

In equity markets, precious metals miner Fresnillo was among the top performers as gold prices rose, while gold miner Endeavour also gained.

Ocado shot higher as JPMorgan reiterated its 'overweight' rating on the stock and lifted the price target to 290p from 245p as it continues to view the risk/reward as "highly attractive".

Infrastructure group Balfour Beatty rallied after saying its full-year performance was set to be "slightly" ahead of guidance following a strong first half.

On the downside, Hill & Smith fell despite upgrading its full-year expectations after a solid first half, with robust demand for infrastructure solutions in the US.

Raspberry Pi was weaker as Berenberg started coverage of the shares at 'hold'. The bank said it sees multiple high-growth markets for the company to increase its market penetration and gross profit participation. However, it also recognised risks within the model due to the "fragmented customer base, high memory prices and required capital expenditure relating to the semiconductor business buildout and continued innovation".

Tesco took a hit after Shore Capital downgraded shares of the supermarket retailer to 'hold' from 'buy' and suggested investors pause for breath.

Market Movers

FTSE 100 (UKX) 10,833.15 -0.10%

FTSE 250 (MCX) 24,814.88 0.06%

techMARK (TASX) 6,126.43 -0.44%

FTSE 100 - Risers

Admiral Group (ADM) 3,828.00p 2.68%

InterContinental Hotels Group (IHG) 159.75p 2.54%

3i Group (III) 2,813.00p 2.40%

Fresnillo (FRES) 3,016.00p 2.31%

BAE Systems (BA.) 2,270.00p 1.75%

Coca-Cola Europacific Partners (DI) (CCEP) 7,920.00p 1.73%

United Utilities Group (UU.) 1,430.00p 1.49%

Vodafone Group (VOD) 119.35p 1.40%

SSE (SSE) 2,431.00p 1.38%

Halma (HLMA) 3,764.00p 1.24%

FTSE 100 - Fallers

Burberry Group (BRBY) 1,120.50p -4.23%

Marks & Spencer Group (MKS) 385.70p -4.01%

Reckitt Benckiser Group (RKT) 5,138.00p -2.76%

IG Group Holdings (IGG) 1,354.00p -2.59%

Relx plc (REL) 2,541.00p -2.57%

Diageo (DGE) 1,732.00p -1.93%

Sainsbury (J) (SBRY) 337.90p -1.92%

Tesco (TSCO) 452.50p -1.89%

The Sage Group (SGE) 1,020.00p -1.88%

Next (NXT) 15,330.00p -1.64%

FTSE 250 - Risers

Ocado Group (OCDO) 255.00p 15.59%

Ceres Power Holdings (CWR) 485.00p 11.65%

Balfour Beatty (BBY) 926.50p 7.05%

Shaftesbury Capital (SHC) 149.40p 3.03%

Serco Group (SRP) 277.20p 2.90%

Endeavour Mining (EDV) 4,288.00p 2.51%

Vistry Group (VTY) 263.20p 2.33%

Dr. Martens (DOCS) 88.20p 2.32%

Helios Towers (HTWS) 207.00p 2.17%

Polar Capital Technology Trust (PCT) 677.00p 2.03%

FTSE 250 - Fallers

Hill and Smith (HILS) 2,935.00p -4.86%

Raspberry PI Holdings (RPI) 675.00p -4.39%

Hays (HAS) 64.90p -4.28%

Patria Private Equity Trust (PPET) 598.00p -4.17%

Energean (ENOG) 727.50p -4.02%

GB Group (GBG) 227.00p -4.02%

Applied Nutrition (APN) 335.50p -4.01%

International Workplace Group (IWG) 177.10p -3.12%

Greggs (GRG) 1,847.00p -2.48%

Plus500 Ltd (DI) (PLUS) 3,720.00p -2.46%