London midday: Stocks ebb as investors eye US healthcare vote

Equity markets in London were a touch weaker by midday as the delay to a key healthcare vote in the US raised doubts about Donald Trump's ability to deliver on other aspects of his agenda.

The FTSE 100 was down 0.2% to 7,329.92 while the pound was off 0.2% to $1.2498, having shot past the $1.25 level a day earlier on the back of stronger-than-expected UK retail sales figures.

On Thursday, the US congressional vote on the repeal of Barack Obama’s Affordable Care Act was delayed by 24 hours, adding to concerns that Trump lacks enough support in the House of Representatives and may struggle to get approval for all the stimulus policies he has promised.

IG analyst Joshua Mahony said: "Trump has indicated that should the healthcare reforms not pass, he would simply move on to his other plans, such as cutting corporate taxes.

"Clearly while the president previously said that his planned tax cuts could only be quantified once the healthcare plans are passed, it may have meant that those cuts are simply going to be lessened rather than cancelled."

Back to the UK, data released by the British Bankers' Association showed banks approved fewer mortgages in February, putting pressure on the housing market.

Mortgage approvals fell back to 42,613 last month, which was 3.4% lower than January's revised 12-month high of 44,142, 4.6% lower compared to the February last year and some way short of the 44,900 consensus forecast.

The BBA's high street banking data showed mortgage borrowing of £13.4bn fell 4.3% compared to the preceding month but was up 4.6% year on year, or 2.5% after allowing for repayments.

Non-financial companies borrowed £1.6bn less in February compared to last year as some short-term borrowing unwound.

The BBA also reported that consumer credit grew growth slowed an annual rate of 6.6% and that business borrowing continued to be subdued, growing by 0.9% annually.

There was some good news across the Channel, however, as the latest survey from IHS Markit showed eurozone business growth reached a near six-year high in March.

In UK corporate news, engineer Smiths Group was on the front foot as it reported flat first-half revenues of £1.6bn on an underlying basis but growth of 18% on a reported basis thanks to the weak pound.

Land Securities nudged lower after confirming it was in discussions with Deutsche Bank on pre-letting a site for the German banking giant's London headquarters.

Acacia Mining fell after saying there has been no change on the Tanzanian government's ban on exports of gold and copper ore despite efforts by the company.

Syncona gained ground after it noted that Blue Earth Diagnostics - which it funds - had received a positive opinion recommending that Axumin be granted marketing authorisation in the European Union from the Committee for Medicinal Products for Human Use of the European Medicines Agency.

Insurer Hastings Group was given a boost as UBS initiated coverage of the stock at 'buy'.

Market Movers

FTSE 100 (UKX) 7,329.92 -0.15%
FTSE 250 (MCX) 18,917.69 -0.45%
techMARK (TASX) 3,454.86 -0.32%

FTSE 100 - Risers

Smiths Group (SMIN) 1,601.00p 2.89%
Fresnillo (FRES) 1,554.00p 1.17%
National Grid (NG.) 1,017.50p 0.99%
Informa (INF) 641.00p 0.87%
Rolls-Royce Holdings (RR.) 760.50p 0.86%
Randgold Resources Ltd. (RRS) 7,155.00p 0.85%
Rio Tinto (RIO) 3,289.00p 0.69%
Scottish Mortgage Inv Trust (SMT) 360.00p 0.61%
Provident Financial (PFG) 2,945.00p 0.58%
Barclays (BARC) 225.10p 0.54%

FTSE 100 - Fallers

Next (NXT) 4,090.00p -2.60%
Johnson Matthey (JMAT) 2,910.00p -2.02%
Marks & Spencer Group (MKS) 331.60p -1.69%
BT Group (BT.A) 325.85p -1.67%
Hikma Pharmaceuticals (HIK) 1,998.00p -1.38%
Ashtead Group (AHT) 1,628.00p -1.27%
Smurfit Kappa Group (SKG) 2,128.00p -1.25%
3i Group (III) 711.00p -1.04%
Kingfisher (KGF) 319.40p -1.02%
BP (BP.) 452.10p -0.99%

FTSE 250 - Risers

Hastings Group Holdings (HSTG) 270.90p 3.00%
Euromoney Institutional Investor (ERM) 1,049.00p 2.14%
Syncona Limited NPV (SYNC) 146.60p 1.38%
Capita (CPI) 566.50p 1.34%
BGEO Group (BGEO) 3,125.00p 1.23%
OneSavings Bank (OSB) 419.30p 1.21%
Northgate (NTG) 559.50p 1.08%
Kaz Minerals (KAZ) 479.00p 1.05%
Cranswick (CWK) 2,512.00p 0.88%
William Hill (WMH) 291.30p 0.80%

FTSE 250 - Fallers

IP Group (IPO) 155.60p -3.05%
Allied Minds (ALM) 322.50p -2.89%
Crest Nicholson Holdings (CRST) 545.00p -2.68%
Genus (GNS) 1,745.00p -2.68%
AO World (AO.) 136.30p -2.64%
Hunting (HTG) 543.00p -2.60%
UDG Healthcare Public Limited Company (UDG) 718.50p -2.44%
Vedanta Resources (VED) 812.50p -2.17%
Marshalls (MSLH) 360.90p -2.04%
Balfour Beatty (BBY) 263.10p -2.01%