London midday: Stocks in the black as sterling weakens

London stocks were still in the black by midday on Tuesday, helped along by a weaker pound.

The FTSE 100 was up 0.7% at 6,798.01, while sterling fell 0.3% against the greenback to 1.3865.

Chris Beauchamp, chief market analyst at IG, said: "European markets have shaken off their torpor from yesterday and have pushed higher, joining in the global rally. The prospect of yet another big stimulus programme in the US, this time targeted at the nation’s infrastructure, has provided equities with another reason to move higher, as the Dow sets its sights on 33,000 and the S&P 500 girds itself for a rally to 4000.

"Expectations of a strong global rebound from the volatility and economic crisis of the past year are high, which helps to explain the shift into cyclicals that continues to dominate over the once all-powerful tech sector, but pre-game nerves ahead of the FOMC decision tomorrow are still lingering to an extent. Markets remain quiet overall, exemplified by the drop back in the Vix, with investors now adjusted it seems to higher bond yields even as they continue to debate how central banks will react."

Beauchamp said the dollar was being underpinned by prospects of an ebullient US economic recovery. A weaker pound tends to boost the top-flight index, as around 70% of its constituents derive most of their earnings from overseas.

In equity markets, AstraZeneca was a high riser after Jefferies upgraded the shares to ‘buy’ from ‘hold’, saying its impressive revenue and profit trajectory is compelling relative to EU pharmaceutical peers, with improving quality of earnings and cash flow generation set to ease concerns.

Greggs rallied after the bakery chain - famous for its sausage rolls - swung to an annual loss in 2020 for the first time in its history as its sales were hit by closures related to the Covid-19 pandemic, but said trading so far this year was better than expected. It posted a pre-tax loss of £13.7m, having said in January that the loss could be as much as £15m.

Retirement products specialist Just Group advanced as it posted an 11% jump in full-year earnings, while C&C fizzed higher as the premium drinks company sounded an optimistic note on its outlook.

On the downside, NatWest lost ground after the Financial Conduct Authority started criminal proceedings against the bank for money laundering. The FCA said NatWest allegedly accepted "increasingly large cash deposits" totalling £365m into the accounts of a UK incorporated customer between November 2011 and October 2016, including £264m in cash.

4Imprint tumbled as it reported a 93% slump in full-year profit after taking a significant hit from the pandemic. The shares were also knocked lower by a downgrade to ‘hold’ from ‘add’ at Peel Hunt.

Wizz Air tanked after US private equity firm Indigo Partners sold just over 7.69m shares in the budget airline in a placing.

Sabre Insurance and Wood Group were also weaker after full-year results.

Market Movers

FTSE 100 (UKX) 6,798.01 0.72%
FTSE 250 (MCX) 21,761.70 1.11%
techMARK (TASX) 4,226.88 0.93%

FTSE 100 - Risers

Rolls-Royce Holdings (RR.) 123.35p 4.53%
Land Securities Group (LAND) 704.30p 3.80%
Schroders (SDR) 3,491.00p 3.25%
AstraZeneca (AZN) 7,197.00p 3.14%
British Land Company (BLND) 524.40p 3.11%
Next (NXT) 7,986.00p 2.60%
St James's Place (STJ) 1,273.50p 2.41%
Associated British Foods (ABF) 2,513.00p 2.32%
Hargreaves Lansdown (HL.) 1,545.00p 2.32%
Intermediate Capital Group (ICP) 1,946.00p 2.31%

FTSE 100 - Fallers

Anglo American (AAL) 2,939.50p -1.92%
NATWEST GROUP PLC ORD 100P (NWG) 185.95p -1.33%
London Stock Exchange Group (LSEG) 7,480.00p -1.06%
Burberry Group (BRBY) 2,091.00p -0.99%
Compass Group (CPG) 1,593.50p -0.84%
Just Eat Takeaway.Com N.V. (CDI) (JET) 7,284.00p -0.76%
Flutter Entertainment (CDI) (FLTR) 16,780.00p -0.56%
Royal Dutch Shell 'A' (RDSA) 1,543.40p -0.45%
BAE Systems (BA.) 505.00p -0.43%
BP (BP.) 314.90p -0.40%

FTSE 250 - Risers

Hammerson (HMSO) 40.41p 9.81%
Cineworld Group (CINE) 113.35p 5.93%
Just Group (JUST) 100.20p 5.53%
Serco Group (SRP) 137.00p 4.82%
Capital & Counties Properties (CAPC) 181.70p 4.79%
Greggs (GRG) 2,310.00p 4.52%
Elementis (ELM) 127.60p 3.91%
888 Holdings (888) 333.00p 3.90%
Sanne Group (SNN) 577.00p 3.78%
BMO Commercial Property Trust Limited (BCPT) 75.10p 3.73%

FTSE 250 - Fallers

4Imprint Group (FOUR) 2,315.00p -13.94%
Petrofac Ltd. (PFC) 99.40p -9.14%
Wizz Air Holdings (WIZZ) 5,250.00p -4.63%
Wood Group (John) (WG.) 307.50p -3.06%
Sabre Insurance Group (SBRE) 243.00p -2.80%
Premier Foods (PFD) 97.80p -2.20%
Diversified Gas & Oil (DGOC) 112.40p -1.92%
TUI AG Reg Shs (DI) (TUI) 429.70p -1.47%
Close Brothers Group (CBG) 1,630.00p -1.21%
Tullow Oil (TLW) 59.76p -1.19%