(Sharecast News) - London stocks had turned negative by midday on Thursday as oil prices crept higher again, with Brent crude comfortably above the $100 a barrel level, as investors eyed an expected 25 basis points rate hike by the European Central Bank.
The FTSE 100 was down 0.4% at 10,630.91, while Brent crude was up 0.6% at $101.82 a barrel, having breached the $100 level on Wednesday for the first time since 24 July, and West Texas Intermediate was 1.3% higher at $97.25.
Patrick Munnelly at Tickmill Group said: "The European Central Bank is the main event today, with markets fully priced for a 25 bps increase in the deposit facility rate to 2.50%. The hike itself is no longer the story; the reaction function is. Money markets now discount two further quarter-point increases by April 2027 as investors brace for a stickier inflation path.
"Crude above $100/bbl, tight European natural gas supply, El Nino-related food price risks and persistent tech-sector capex demand have combined to push the policy debate back in a hawkish direction.
"Add in firmer Eurozone PMIs and improving consumer confidence, and the Governing Council faces an uncomfortable question: whether supply shocks remain temporary noise or are beginning to seed second-round wage and pricing effects."
In equity markets, Associated British Foods tumbled as it said it expects full-year like-for-like sales at its Primark division to fall by 2.6% amid a tough consumer environment, adding that it also planned to introduce home delivery at the clothing retailer.
Primarks's total sales growth was expected to come in at 2% for both the fourth quarter and full year thanks to new stores and franchises. The company, which also owns food and ingredients operations, maintained full-year guidance.
HSBC lost ground as it said chief financial officer Pam Kaur plans to step down next year and a search for her successor has begun.
Electrical products retailer Currys fell despite saying it remains comfortable with market consensus forecasts after a strong start to the new financial year. Group like-for-like revenues were up 7% year-on-year over the 17 weeks to 29 August, with the larger UK and Ireland division growing by 6% and the Nordics growing by 9%.
Animal genetics firm Genus reported a rise in full-year profit and announced a £60m share buyback, but the shares slumped as revenue missed expectations.
Nutrition and beauty brand owner THG beat its own guidance for sales and profits in the first half, with adjusted operating profits more than doubling, but shares fell sharply as the company reported a significant revenue slowdown in the third quarter.
M&G, Baltic Classifieds, NCC and Prudential all fell as they traded without entitlement to the dividend.
Market Movers
FTSE 100 (UKX) 10,630.91 -0.37%
FTSE 250 (MCX) 24,013.61 -0.39%
techMARK (TASX) 5,923.86 -0.47%
FTSE 100 - Risers
Compass Group 11 (CPG) 31.15p 1.97%
ICG (ICG) 1,946.00p 1.57%
Whitbread (WTB) 2,349.00p 1.25%
Hiscox Limited (DI) (HSX) 1,868.00p 1.19%
International Consolidated Airlines Group SA (CDI) (IAG) 420.20p 1.18%
Abrdn (ABDN) 249.80p 1.13%
JD Sports Fashion (JD.) 80.46p 1.03%
BP (BP.) 562.40p 0.84%
St James's Place (STJ) 1,128.00p 0.80%
Entain (ENT) 506.00p 0.80%
FTSE 100 - Fallers
Associated British Foods (ABF) 1,802.50p -10.84%
Anglo American (AAL) 4,003.00p -3.35%
Antofagasta (ANTO) 3,814.00p -3.05%
M&G (MNG) 335.20p -2.99%
Glencore (GLEN) 609.10p -2.54%
Computacenter (CCC) 5,090.00p -2.22%
Rio Tinto (RIO) 7,406.00p -2.01%
Croda International (CRDA) 3,214.00p -1.62%
Airtel Africa (AAF) 335.20p -1.52%
IMI (IMI) 3,008.00p -1.44%
FTSE 250 - Risers
Dunelm Group (DNLM) 777.00p 5.99%
Hansa Investment Company Limited (DI) (HAN) 338.00p 3.68%
Harbour Energy (HBR) 282.40p 2.84%
Rank Group (RNK) 89.20p 2.53%
Wizz Air Holdings (WIZZ) 1,037.00p 2.27%
North Atlantic Smaller Companies Inv Trust (NAS) 410.71p 2.17%
North American Income Trust (The) (NAIT) 437.00p 2.10%
Pantheon Infrastructure (PINT) 117.20p 1.74%
Vistry Group (VTY) 265.40p 1.68%
SSP Group (SSPG) 189.90p 1.55%
FTSE 250 - Fallers
THG (THG) 29.04p -8.83%
Genus (GNS) 2,094.00p -6.18%
Dr. Martens (DOCS) 65.90p -5.18%
Rosebank Industries NPV (ROSE) 329.00p -4.64%
Pan African Resources (PAF) 127.90p -4.61%
Ceres Power Holdings (CWR) 408.40p -4.26%
Energean (ENOG) 828.50p -3.04%
Oxford Nanopore Technologies (ONT) 153.80p -2.78%
Hochschild Mining (HOC) 623.00p -2.73%
Genuit Group (GEN) 253.20p -2.62%
50.65 (0.47%)
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