London midday: Stocks maintain gains as miners shine

(Sharecast News) - London stocks were still higher by midday on Thursday, underpinned by a strong showing in the mining sector, as gold, silver and copper prices hit fresh highs.

The FTSE 100 was up 0.7% at 10,221.04.

Investors were mulling a slew of US tech earnings and the latest policy announcement from the Federal Reverse, which kept its benchmark rate steady at 3.5% to 3.75% on Wednesday as expected.

Derren Nathan, head of equity research at Hargreaves Lansdown, said: "As expected, there were no changes to US base rates yesterday, but Jerome Powell's commentary painted a picture of underlying strength in the world's largest economy, which even he admitted had caught him by surprise. Easing inflation, solid growth and stable employment mean the bank's in no hurry to cut rates again with markets not expecting a further cut before Powell's scheduled departure in May.

"As it stands, his successor looks set to inherit an economy heading for a soft landing, or better still, no landing at all. But he was quick to stress the importance of continued independence and the need to steer clear of elected politics, most likely a response to Donald Trump's continuing pressure for looser monetary policy. If the economy is allowed to overheat, there's a chance that these solid foundations start to crack."

Quarterly results from three of the 'Magnificent Seven' were also in focus, after Tesla, Meta and Microsoft reported after the bell on Wednesday.

In equity markets, 3i Group surged to the top of the FTSE 100 as the private equity firm reported a further rise in net asset value over the nine months to December, supported by another strong year from Dutch retailer Action, which continued to drive the group's overall performance.

Antofagasta rose as it posted a spike in fourth-quarter copper production and forecast further growth for the in-demand base metal.

Miners more generally were in the black, with Anglo American, Glencore and Rio Tinto all higher as copper prices hit record highs.

Precious metals miner Fresnillo shone, along with Hochschild and Endeavour, as gold prices breached $5,500 an ounce, driven by a weak dollar and political uncertainty. Silver, meanwhile, hit $120 an ounce for the first time.

Susannah Streeter, chief investment strategist at Wealth Club, said: "The Footsie is heading up towards record levels, as geopolitical tensions make the defensive nature of the index more attractive.

"The flight to safe havens is intensifying with gold and silver hitting fresh records, amid concerns about fresh conflict erupting. Mining companies have made fresh gains, amid the insatiable demand for precious metals."

Lloyds Banking Group rose after reporting a better-than-expected 12% jump in annual profit driven by higher income which offset �800m set aside to compensate customers who were mis-sold motor finance.

Crest Nicholson posted full-year profit below guidance amid a "subdued" housing market, as it warned of a "material uncertainty" related to its position as a going concern, but shares in the housebuilder rallied after it highlighted early signs of demand recovery.

EasyJet was up as it reiterated full-year guidance on the back of robust first-quarter sales and growing demand for summer holidays.

Wizz Air flew higher as it said operating losses widened in the third quarter but struck a more optimistic tone about keeping revenue steady. Traders also said a huge short interest in Wizz was exaggerating the share price move.

On the downside, equipment rental firm Ashtead was the worst performer on the FTSE 100 following disappointing quarterly results from US peer United Rentals.

Hilton Foods slumped as it struck a cautious tone on the outlook, warning that US stock write-offs would be "significantly higher" than indicated and that inflationary pressures in beef and white fish were set to continue.

Victrex fell sharply as it traded without entitlement to the dividend, while Ocado shares tanked after it said Canadian supermarket Sobeys, one of its partners, has decided to close its customer fulfilment centre in Calgary.

Market Movers

FTSE 100 (UKX) 10,221.04 0.66%

FTSE 250 (MCX) 23,375.62 -0.06%

techMARK (TASX) 5,900.07 -0.29%

FTSE 100 - Risers

3i Group (III) 3,486.00p 10.77%

Antofagasta (ANTO) 4,004.00p 7.98%

Glencore (GLEN) 525.30p 3.86%

Anglo American (AAL) 3,605.00p 3.71%

Rio Tinto (RIO) 6,961.00p 3.11%

Weir Group (WEIR) 3,352.00p 2.89%

St James's Place (STJ) 1,541.00p 2.36%

Metlen Energy & Metals (MTLN) 47.42p 2.32%

Shell (SHEL) 2,784.50p 1.90%

Fresnillo (FRES) 4,188.00p 1.75%

FTSE 100 - Fallers

Ashtead Group (AHT) 4,844.00p -5.24%

The Sage Group (SGE) 965.20p -3.03%

Pershing Square Holdings Ltd NPV (PSH) 4,466.00p -2.87%

Croda International (CRDA) 2,672.00p -2.77%

Autotrader Group (AUTO) 543.80p -2.33%

Relx plc (REL) 2,636.00p -2.08%

Airtel Africa (AAF) 344.80p -1.93%

Next (NXT) 13,355.00p -1.73%

Bunzl (BNZL) 2,018.00p -1.66%

Associated British Foods (ABF) 1,875.00p -1.65%

FTSE 250 - Risers

Wizz Air Holdings (WIZZ) 1,420.00p 9.74%

Endeavour Mining (EDV) 4,762.00p 5.12%

Harbour Energy (HBR) 236.20p 4.70%

Dr. Martens (DOCS) 68.00p 3.50%

Ithaca Energy (ITH) 182.60p 3.40%

Chrysalis Investments Limited NPV (CHRY) 114.20p 2.70%

Lion Finance Group (BGEO) 10,120.00p 2.43%

Hochschild Mining (HOC) 745.00p 2.19%

Man Group (EMG) 261.80p 2.11%

Fidelity China Special Situations (FCSS) 328.00p 2.02%

FTSE 250 - Fallers

Hilton Food Group (HFG) 459.00p -10.70%

Ocado Group (OCDO) 220.20p -10.38%

Victrex plc (VCT) 671.00p -8.71%

Future (FUTR) 532.50p -3.71%

WPP (WPP) 297.50p -3.13%

Supermarket Income Reit (SUPR) 83.50p -3.02%

Pennon Group (PNN) 548.50p -2.92%

Trustpilot Group (TRST) 190.80p -2.70%

Raspberry PI Holdings (RPI) 270.10p -2.63%

Hays (HAS) 45.38p -2.49%