London midday: FTSE off highs as oil creeps up, US PCE eyed

(Sharecast News) - London stocks were well off earlier highs by midday on Wednesday as oil prices crept up again and as investors eyed a key US inflation reading, but the overall tone remained positive after data showed the UK economy grew faster than expected in the second quarter.

The FTSE 100 was up 0.1% at 10,651.67, while Brent crude was 0.7% firmer at $103.30 a barrel and West Texas Intermediate was 1% higher at $90.28.

Dan Coatsworth, head of markets at AJ Bell, said: "A test of investors' improved sentiment will come later with the Core PCE price index data and US growth data. The Core PCE is the Federal Reserve's preferred measure of inflation thanks to the broad picture it offers of consumer spending.

"Inevitably, oil and gas names were lower in London, while consumer facing sectors gained some momentum. Utilities stocks also recovered some ground after falling yesterday on Andy Burnham's unveiling of GB Grid - a state-backed initiative to invest in the electricity network."

The US PCE reading for August is due at 1330 BST.

On the UK macro front, figures from the Office for National Statistics showed the economy grew 0.5% in April to June, up from a previous estimate of 0.4% and following 0.6% growth in the first quarter. Economists were expecting growth to be unrevised.

The services sector grew by 0.6%, the construction sector by 0.8% and the production sector by 0.1%.

ONS director of economic statistics Liz McKeown said: "Today's figures include our annual improvements to the measurement of the economy, incorporating new information that provides a better picture of activity across the UK's service sector, alongside the usual inclusion of updated and improved data sources.

"Growth for 2025 as a whole was a little lower than previously estimated, with the profile of growth across the quarters also revised.

"However, stronger services growth in the latest quarter means the economy is now slightly larger than previously estimated."

In equity markets, Greggs surged as it unveiled plans to overhaul its manufacturing operations, with the potential loss of more than 700 jobs.

The bakery chain said that following a review of where future manufacturing activity should be located, four sites had been flagged for possible closure. It will now enter a consultation period, but confirmed 740 roles were likely to be made redundant over the next two-and-a-half years.

The announcement coincided with an update on third-quarter trading. Total sales rose 7.7% in the 13 weeks to 26 September, or by 3.4% on a like-for-like basis, which Greggs attributed to menu innovation alongside more settled weather. Coupled with "strong" cost control, Greggs added that it now expected a "modestly improved" outcome for 2026.

Oxford Nanopore shot up as RBC Capital Markets lifted its price target to 300p from 225p.

Private hospitals chain Spire Healthcare - about to be bought by a group of investment firms in a deal worth £1bn - was in focus as it posted lower first-half operating profit of £38.4m, down from £63m a year earlier.

Saga surged as the specialist in products for the over-50s said its first-half performance was ahead of expectations, with all of its core businesses growing, and that it expects to achieve its medium-term targets earlier than planned.

Market Movers

FTSE 100 (UKX) 10,651.67 0.14%

FTSE 250 (MCX) 24,561.24 0.76%

techMARK (TASX) 6,200.04 0.05%

FTSE 100 - Risers

Reckitt Benckiser Group (RKT) 5,050.00p 3.23%

SSE (SSE) 2,505.00p 3.12%

Antofagasta (ANTO) 3,777.00p 3.10%

National Grid (NG.) 1,154.50p 2.85%

Severn Trent (SVT) 3,138.00p 2.68%

United Utilities Group (UU.) 1,437.00p 2.27%

Kingfisher (KGF) 335.00p 1.98%

Weir (WEIR) 2,750.00p 1.85%

JD Sports Fashion (JD.) 81.50p 1.85%

Marks & Spencer Group (MKS) 388.10p 1.78%

FTSE 100 - Fallers

The Sage Group (SGE) 950.80p -2.12%

Ithaca Energy (ITH) 270.90p -1.49%

BP (BP.) 543.30p -1.40%

Shell (SHEL) 3,559.50p -1.07%

Experian (EXPN) 2,446.00p -1.05%

Relx plc (REL) 2,477.00p -0.80%

Pearson (PSON) 1,199.00p -0.79%

BT Group (BT.A) 193.55p -0.71%

Prudential (PRU) 939.80p -0.59%

Rolls-Royce Holdings (RR.) 1,473.60p -0.55%

FTSE 250 - Risers

Oxford Nanopore Technologies (ONT) 218.00p 9.33%

Greggs (GRG) 2,014.00p 7.95%

Pennon Group (PNN) 467.40p 5.88%

RHI Magnesita N.V. (DI) (RHIM) 2,975.00p 5.48%

Raspberry PI Holdings (RPI) 680.25p 5.31%

Jupiter Fund Management (JUP) 174.60p 4.95%

TP Icap Group (TCAP) 348.00p 4.90%

International Workplace Group (IWG) 181.20p 4.13%

Bridgepoint Group (Reg S) (BPT) 334.20p 3.98%

B&M European Value Retail (BME) 260.80p 3.74%

FTSE 250 - Fallers

WPP (WPP) 365.50p -4.43%

Michael Page (PAGE) 208.40p -2.43%

Hansa Investment Company Limited (DI) (HAN) 332.00p -1.78%

Close Brothers Group (CBG) 439.20p -1.57%

Entain (ENT) 418.80p -1.34%

Patria Private Equity Trust (PPET) 596.00p -1.32%

Schroder Oriental Income Fund Ltd. (SOI) 456.00p -1.30%

Bloomsbury Publishing (BMY) 629.00p -1.26%

Vistry Group (VTY) 265.00p -1.05%

XP Power Ltd. (DI) (XPP) 2,015.00p -0.98%