London midday: Stocks flat ahead of US GDP and Yellen speech

UK stocks were flat on Friday as traders looked ahead to data on US economic growth and a speech from Federal Reserve chair Janet Yellen.

The US first quarter gross domestic product report at 1330 BST is expected to be revised up to an annualised 0.8% from an initial estimate of 0.5%.

A report from the University of Michigan at 1500 GMT, on the other hand, is forecast to reveal a downward revision to the consumer confidence index to 95.7 in May from 95.8 previously.

“All this will put pressure on Yellen to offer some indication of what way the Fed is heading going into its June meeting next month, though the central bank president may be reluctant to offer too much guidance before she gets a look at next week’s non-farm jobs report,” said Connor Campbell, financial analyst at Spreadex.

Yellen is due to speak at Harvard’s Radcliffe Day at 1530 BST.

Closer to home, a report showed an improvement in UK consumer confidence. GfK’s consumer confidence index improved to -1 in May from -3 a month earlier, beating estimates for a reading of -4.

“It is a relief that consumer confidence was a little firmer in May following April’s drop to a 16-month low, but the suspicion is that consumers will be cautious in their spending amid heightened uncertainty in the run-up to the 23 June referendum on UK membership of the European Union,” said Howard Archer, chief UK and European economist at IHS Global Insight.

At the same time, a declaration at the G7 meeting in Japan said a vote by the UK to leave the EU would pose a "serious threat to global growth".

The group warned in its final statement that Brexit would reverse the trend of increased global trade, investment and jobs.

Meanwhile, oil prices fell after reaching the $50 a barrel mark during the previous session as concerns about an oversupplied market resumed. Brent crude fell 1.2% to $48.97 per barrel and West Texas Intermediate dropped 0.91% to $49.03 per barrel at 1209 BST.

Among corporate stocks, miners rallied as copper prices rose with Rio Tinto and Glencore among the top risers.

Wolseley gained as it said on Friday that Simon Nicholls - the current chief financial officer of Cobham - will not be taking up his role as CFO later this year, as announced back in January.

Bodycote declined as it reported a drop in revenue between 1 January and 30 April, but reiterated its expectations for the year.

Shire slumped as shareholders approved the company’s $32bn merger with US-based Baxalta.

Capita dropped as Exane downgraded its shares to 'underperform' from 'neutral' and reiterated its 1,050p target price.

Market Movers

FTSE 100 (UKX) 6,267.19 0.02%
FTSE 250 (MCX) 17,189.57 -0.02%
techMARK (TASX) 3,118.18 -0.11%

FTSE 100 - Risers

Rio Tinto (RIO) 2,010.50p 2.11%
Glencore (GLEN) 137.70p 1.29%
United Utilities Group (UU.) 967.00p 1.26%
Burberry Group (BRBY) 1,094.00p 1.11%
InterContinental Hotels Group (IHG) 2,664.00p 0.99%
Next (NXT) 5,495.00p 0.92%
Unilever (ULVR) 3,154.50p 0.86%
CRH (CRH) 2,076.00p 0.78%
Bunzl (BNZL) 2,029.00p 0.74%
BHP Billiton (BLT) 857.50p 0.67%

FTSE 100 - Fallers

Berkeley Group Holdings (The) (BKG) 3,294.00p -2.40%
Capita (CPI) 1,077.00p -1.91%
Antofagasta (ANTO) 441.90p -1.34%
Shire Plc (SHP) 4,304.00p -1.03%
Standard Chartered (STAN) 543.60p -1.02%
GKN (GKN) 271.80p -1.02%
International Consolidated Airlines Group SA (CDI) (IAG) 539.00p -1.01%
DCC (DCC) 6,285.00p -0.95%
Tesco (TSCO) 167.05p -0.92%
Marks & Spencer Group (MKS) 387.20p -0.87%

FTSE 250 - Risers

Phoenix Group Holdings (DI) (PHNX) 887.50p 4.47%
Rank Group (RNK) 256.50p 3.51%
OneSavings Bank (OSB) 332.40p 3.33%
Serco Group (SRP) 106.70p 2.60%
Synthomer (SYNT) 352.70p 2.47%
B&M European Value Retail S.A. (DI) (BME) 296.40p 1.96%
Restaurant Group (RTN) 360.00p 1.90%
PayPoint (PAY) 923.50p 1.88%
Entertainment One Limited (ETO) 186.40p 1.86%
Aldermore Group (ALD) 221.60p 1.74%

FTSE 250 - Fallers

Homeserve (HSV) 475.50p -2.70%
DFS Furniture (DFS) 291.20p -2.41%
Acacia Mining (ACA) 317.10p -2.34%
Amec Foster Wheeler (AMFW) 441.90p -2.26%
Allied Minds (ALM) 330.10p -2.05%
Woodford Patient Capital Trust (WPCT) 95.85p -1.94%
Ibstock (IBST) 199.00p -1.87%
Zoopla Property Group (WI) (ZPLA) 322.20p -1.77%
Wizz Air Holdings (WIZZ) 1,910.00p -1.75%
Bodycote (BOY) 589.50p -1.67%