London midday: Stocks recover ahead of speech by Fed chair Yellen

London stocks recovered from the losses seen earlier in the day as traders waited on word from Athens regarding the approval of the reform measures demanded by creditors.

As of 11:45 the FTSE 100 was 2.92 points higher to 6,756.65 points, although the more UK-focused FTSE 250 was again a laggard, trading down 35.08 points to 17,606.95.

The yields on the benchmark 10-year Gilt was edging lower by one basis point to 2.12%.

The unemployment rate in the UK unexpectedly rose to 5.6% in the three months to May (consensus: 5.5%), while wage growth accelerated to a 3.2% year-on-year clip, according to the Office for National Statistics.

"Softer employment growth would certainly fit in with other evidence tentatively suggesting that stronger wage growth is prompting firms to focus on getting more out of their existing employees, rather than just hiring more workers," Vicky Redwood, chief UK economist at Capital Economics said in a research note to clients.

Acting as a backdrop, overnight Beijing released data showing that economic growth in the country was steady in the second quarter at a 7% pace (consensus: 6.8%), amid “frenetic activity” in the country’s financial services sector and thanks to policy easing from authorities in Beijing.

Turnover on China’s stockmarkets rocketed by 500% year-on-year in the three months to June, Julian Evans Pritchard from Capital Economics noted. Despite a weak start to the quarter, activity appears to have continued to rebound in May on the back of policy easing, Evans-Pritchard added.

Stateside, US Federal Reserve Chair Janet Yellen's is at 15:00 BST due to delivery her half-yearly testimony before the US House of Representatives' Financial Services committee, something roughly akin to the Treasury Select Committee, which may shed further light on her thinking regarding when interest rates on the other side of the Pond should start heading higher.

Miners lead gains

On the corporate front, Anglo American topped the FTSE 100 after Credit Suisse upgraded the stock to ‘outperform’ from ‘neutral’. The Swiss broker became the latest over the last few days to weigh with a positive view on companies in the sector.

Burberry slumped after it said a decline in Asia Pacific and further deceleration in Hong Kong hurt sales in the three months to 30 June.

International Consolidated Airlines Group dropped as the European Commission approved its offer for Aer Lingus, after it agreed to make some concessions to assuage concerns about competition.

In a pre-close statement for the financial year to 26 July, JD Wetherspoons said sales were up 7.6%, but as previously indicated full year pre-tax profit is likely to be lower than last year. Martin said the policy would add considerable difficulty for companies making financial projections, and the increased labour costs would hurt pubs more than supermarkets.

Car parts and bike peddler Halfords pedalled on the right path towards its full year targets during the first quarter, with a solid first quarter against tough comparatives thanks to premium bikes, children's car seats and dashboard-cameras. Group sales in the 13 weeks to 3 July were up 3.6% on the equivalent period last year, with retail up 3.4% in spite of less helpful weather and tough comparatives especially in cycling, and autocentres up 5%.

Market Movers

techMARK 3,175.99 -0.35%
FTSE 100 6,757.23 +0.05%
FTSE 250 17,608.37 -0.19%

FTSE 100 - Risers
Anglo American (AAL) 886.30p +1.93%
Mondi (MNDI) 1,506.00p +1.55%
Fresnillo (FRES) 686.50p +1.48%
Direct Line Insurance Group (DLG) 355.30p +1.43%
Travis Perkins (TPK) 2,192.00p +1.29%
RSA Insurance Group (RSA) 423.00p +1.24%
St James's Place (STJ) 979.00p +1.19%
Rio Tinto (RIO) 2,609.50p +1.12%
Hammerson (HMSO) 662.50p +0.99%
Glencore (GLEN) 251.00p +0.99%

FTSE 100 - Fallers
GKN (GKN) 311.50p -2.20%
Burberry Group (BRBY) 1,586.00p -2.10%
Johnson Matthey (JMAT) 2,949.00p -1.54%
Weir Group (WEIR) 1,578.00p -1.13%
Sainsbury (J) (SBRY) 265.40p -0.86%
GlaxoSmithKline (GSK) 1,382.00p -0.75%
Sports Direct International (SPD) 731.00p -0.75%
Associated British Foods (ABF) 3,111.00p -0.70%
Meggitt (MGGT) 485.70p -0.67%
easyJet (EZJ) 1,654.00p -0.66%

FTSE 250 - Risers
Lonmin (LMI) 80.90p +4.59%
Kaz Minerals (KAZ) 201.40p +3.81%
Ophir Energy (OPHR) 114.50p +2.69%
Renishaw (RSW) 2,196.00p +2.23%
Intermediate Capital Group (ICP) 575.50p +2.22%
Genus (GNS) 1,490.00p +2.12%
Workspace Group (WKP) 944.00p +2.11%
Vedanta Resources (VED) 461.10p +1.99%
Foxtons Group (FOXT) 223.50p +1.78%
Just Eat (JE.) 425.40p +1.77%

FTSE 250 - Fallers
Entertainment One Limited (ETO) 326.50p -10.03%
Wetherspoon (J.D.) (JDW) 715.00p -7.26%
Micro Focus International (MCRO) 1,336.00p -6.83%
Evraz (EVR) 116.90p -5.11%
Diploma (DPLM) 782.50p -4.57%
Aldermore Group (ALD) 253.40p -3.87%
AO World (AO.) 127.10p -3.86%
Rotork (ROR) 208.80p -3.51%
Tullow Oil (TLW) 286.20p -3.38%
PZ Cussons (PZC) 354.50p -3.33%