London midday: Stocks up but gains muted as ceasefire deadline looms

(Sharecast News) - London stocks had edged higher by midday on Tuesday but gains were muted as the deadline for the two-week ceasefire between the US and Iran loomed, and as investors mulled the latest UK jobs data.

The FTSE 100 was up 0.2% at 10,624.85, while Brent crude was down 1.3% at $94.26 a barrel.

Peace talks between the US and Iran remained in the balance as Donald Trump said it was "highly unlikely" the current ceasefire would be extended.

The ceasefire, agreed a fortnight ago, is due to end on Wednesday, and officials from both countries are slated to meet in Pakistan ahead of that to resume peace talks. However, Iran has yet to officially confirm it will attend, insisting the US Navy needs to lift its blockade of the Strait of Hormuz first. The US vice president JD Vance is set to lead the American delegation to Islamabad, though he has yet to leave Washington.

Trump told Bloomberg he would "not be rushed into making a bad deal. We've got all the time in the world". But he also insisted that an extension of the current truce was "highly unlikely".

Russ Mould, investment director at AJ Bell, said markets were treading water ahead of any updates on the peace talks.

"Oil prices remained below $100 a barrel which suggests cautious optimism that the Middle East conflict won't intensify," he said. "However, the longer oil remains in the 90s range (currently $95), the higher the chance of an inflationary shock and a wobble to global economic activity.

"The 10-year gilt yield soared to 5.1% amid growing uncertainty over the future of Keir Starmer's position as prime minister. Such a movement is the bond market's way of saying the UK is now a riskier proposition and investors want greater compensation. Investors will now be asking what policies might look like under a different prime minister and how that feeds into the economic outlook."

On home shores, data from the Office for National Statistics showed that unemployment unexpectedly fell in February, while wage growth continued to slow.

The unemployment rate in the three months to February was 4.9%, down from January's 5.2%, versus consensus expectations for no change.

The number of payrolled workers was broadly flat, which the ONS said reflected ongoing weak hiring.

Liz McKeown, director of economic statistics at the ONS, added: "Vacancies fell to their lowest level in almost five years, but with unemployment also falling, the number of vacancies per unemployed person remains broadly unchanged."

Average earnings excluding bonuses, meanwhile, grew by 3.6% over the same period, the lowest increase since November 2020. The rate was down on the previous month's 3.8% uplift although it was higher than forecasts for a 3.5% increase.

Including bonuses, and average earnings grew by 3.8%, down from January's 4.1% rise.

Annual regular earnings growth was 5.2% in the public sector, compared to a more modest 3.2% across private companies.

In equity markets, utilities SSE and Centrica were among the top performers, having slumped last week on news the government is considering de-linking electricity and gas prices.

British Land rallied as it boosted annual guidance after a strong end to the year saw earnings come in ahead of forecasts.

Experian rose as it said Adam Crozier would join the board as a non-executive director and chair designate on 12 May. Crozier, who currently serves as chair of BT and Kantar, will succeed Mike Rogers as chairman following the conclusion of Experian's annual general meeting on 22 July.

THG advanced as it reiterated its full-year guidance and hailed its best first-quarter revenue growth since 2021.

JD Wetherspoon was a high riser after an upgrade to 'add' from 'hold' at Peel Hunt, which cited recent share price weakness.

On the downside, Associated British Foods slumped as it reported a 19% drop in adjusted pre-tax profit for the six months to 28 February, held its full-year outlook and said it plans to demerge its Primark retail business from its food operations.

The Weston family's Wittington Investments, ABF's largest shareholder, said it would retain majority ownership of both entities.

Crest Nicholson tanked after downgrading its full-year outlook and saying it was seeking temporary banking covenant relaxation with its lenders as it cited economic uncertainty and the ongoing conflict in the Middle East.

Market Movers

FTSE 100 (UKX) 10,624.85 0.15%

FTSE 250 (MCX) 23,172.33 1.01%

techMARK (TASX) 6,013.83 0.10%

FTSE 100 - Risers

SSE (SSE) 2,631.00p 4.61%

British Land Company (BLND) 406.40p 2.68%

Compass Group 11 (CPG) 29.20p 2.57%

Standard Life (SDLF) 779.00p 2.31%

Centrica (CNA) 209.00p 2.30%

Relx plc (REL) 2,764.00p 2.18%

ICG (ICG) 1,882.00p 1.95%

Experian (EXPN) 2,898.50p 1.86%

London Stock Exchange Group (LSEG) 9,580.00p 1.78%

3i Group (III) 2,883.00p 1.78%

FTSE 100 - Fallers

Associated British Foods (ABF) 1,834.00p -2.71%

Rolls-Royce Holdings (RR.) 1,241.20p -1.70%

BAE Systems (BA.) 2,210.50p -1.29%

Coca-Cola HBC AG (CDI) (CCH) 4,332.00p -1.21%

British American Tobacco (BATS) 4,173.00p -1.18%

Imperial Brands (IMB) 2,769.00p -1.04%

GSK (GSK) 2,121.00p -1.03%

AstraZeneca (AZN) 14,832.00p -0.76%

M&G (MNG) 295.20p -0.67%

Mondi (MNDI) 851.40p -0.65%

FTSE 250 - Risers

THG (THG) 41.44p 7.47%

Ocado Group (OCDO) 221.10p 6.24%

Wetherspoon (J.D.) (JDW) 642.50p 4.45%

The Renewables Infrastructure Group Limited (TRIG) 67.05p 4.36%

Ceres Power Holdings (CWR) 437.00p 4.15%

Bluefield Solar Income Fund Limited (BSIF) 80.00p 4.03%

Trustpilot Group (TRST) 261.60p 3.65%

Oxford Biomedica (OXB) 666.00p 3.42%

Bridgepoint Group (Reg S) (BPT) 286.00p 3.33%

Foresight Environmental Infrastructure Limited (FGEN) 71.70p 3.31%

FTSE 250 - Fallers

Genuit Group (GEN) 294.80p -4.30%

Raspberry PI Holdings (RPI) 593.75p -2.42%

Pan African Resources (PAF) 159.34p -1.84%

Hays (HAS) 33.76p -1.57%

Baillie Gifford Japan Trust (BGFD) 911.00p -1.09%

Baltic Classifieds Group (BCG) 204.60p -0.97%

Endeavour Mining (EDV) 4,902.00p -0.87%

Hochschild Mining (HOC) 677.00p -0.81%

QinetiQ Group (QQ.) 475.70p -0.75%

Spire Healthcare Group (SPI) 164.40p -0.72%