London open: Stocks rise amid avalanche of corporate news; Fed eyed

London stocks edged higher in early trade on Wednesday as investors waded through an avalanche of corporate news and looked ahead to the latest policy announcement from the US Federal Reserve.

At 0850 BST, the FTSE 100 was up 0.5% at 7,340.06.

As far as the Fed is concerned, CMC Markets analyst Michael Hewson said: "It’s certain that the Federal Reserve will be hiking rates again today by another 75bps, with the only question being what comes next, and whether we see 50bps or another 75bps in September. Two weeks ago, there was some speculation that we might see a 100bps move today, however that seems much less likely now.

"An aggressive 100bps is by no means off the table, but it has become less probable after two of the most hawkish Fed members, Christopher Waller, and St. Louis Fed President James Bullard pushed back, saying that 75bps remained their favoured option, which prompted a modest retreat in the US dollar, which hit a 20 year earlier this month."

In equity markets, the corporate updates were never-ending.

Consumer goods giant Reckitt Benckiser rallied as it lifted its full-year sales outlook following a "strong" first half. The company said second-quarter like-for-like revenue grew 11.9% at constant currency as it hiked prices by 9.7%.

it now expects LFL net revenue growth of 5% to 8%, up from previous guidance that it would be at the upper end of a range of 1% to 4%. It also expects growth in adjusted operating margins.

Lloyds Bank was in the black as it lifted annual guidance after a rise in net income for the half year due to rising interest rates, and despite a fall in pre-tax profits.

Corrugated packaging company Smurfit Kappa was up after it reported an increase in first-half profit and revenue despite increasing input costs and supply chain issues. Peers Mondi and DS Smith also gained.

GlaxoSmithKline advanced after lifting its full-year outlook and posting a jump in second-quarter sales. The pharmaceuticals group now expects 2022 sales growth of between 6% and 8%, up from previous guidance of 5% to 7%, while adjusted operating growth is seen at between 13% and 15%, up from previous guidance of 12% to 14%. The guidance excludes any contribution from Covid-19 solutions

Wizz Air flew higher despite saying that first-quarter operating losses widened as it was hit by higher fuel costs.

On the downside, Rio Tinto fell after the miner posted a drop in first-half profit and cut its dividend.

Student accommodation provider Unite Group was also down even as it reported a jump in interim profits and said reservations are now ahead of pre-pandemic levels.

Provident Financial was weaker even as the subprime lender said it swung to an interim profit following the wind down of its consumer credit division.

Market Movers

FTSE 100 (UKX) 7,340.06 0.46%
FTSE 250 (MCX) 19,607.11 0.20%
techMARK (TASX) 4,343.64 -0.02%

FTSE 100 - Risers

Reckitt Benckiser Group (RKT) 6,756.00p 5.99%
Smurfit Kappa Group (CDI) (SKG) 2,830.00p 4.74%
Lloyds Banking Group (LLOY) 45.18p 3.80%
Smith (DS) (SMDS) 274.00p 2.93%
Mondi (MNDI) 1,457.00p 2.86%
NATWEST GROUP PLC ORD 100P (NWG) 235.70p 2.75%
CRH (CDI) (CRH) 2,990.50p 1.89%
Compass Group (CPG) 1,938.00p 1.65%
Smith & Nephew (SN.) 1,208.00p 1.60%
Pershing Square Holdings Ltd NPV (PSH) 2,580.00p 1.57%

FTSE 100 - Fallers

Rio Tinto (RIO) 4,664.00p -3.31%
Unite Group (UTG) 1,160.00p -1.69%
Severn Trent (SVT) 2,882.00p -0.93%
Anglo American (AAL) 2,729.00p -0.80%
National Grid (NG.) 1,115.00p -0.71%
United Utilities Group (UU.) 1,066.00p -0.70%
Antofagasta (ANTO) 1,072.50p -0.65%
BAE Systems (BA.) 782.20p -0.61%
Vodafone Group (VOD) 121.70p -0.54%
AstraZeneca (AZN) 10,972.00p -0.44%

FTSE 250 - Risers

Ibstock (IBST) 186.50p 3.90%
Wizz Air Holdings (WIZZ) 2,016.00p 2.60%
Spire Healthcare Group (SPI) 244.50p 2.30%
Chrysalis Investments Limited NPV (CHRY) 100.20p 2.24%
Hipgnosis Songs Fund Limited NPV (SONG) 113.80p 1.97%
Wood Group (John) (WG.) 152.10p 1.88%
Countryside Partnerships (CSP) 273.00p 1.87%
easyJet (EZJ) 380.00p 1.79%
Petershill Partners (PHLL) 227.00p 1.57%
Marks & Spencer Group (MKS) 137.55p 1.55%

FTSE 250 - Fallers

Provident Financial (PFG) 193.60p -5.93%
Abrdn Private Equity Opportunities Trust (APEO) 480.00p -2.44%
Worldwide Healthcare Trust (WWH) 3,360.00p -2.33%
Capital & Counties Properties (CAPC) 144.90p -1.50%
Pennon Group (PNN) 970.50p -1.42%
Ferrexpo (FXPO) 139.50p -1.41%
Templeton Emerging Markets Inv Trust (TEM) 148.00p -1.33%
ASOS (ASC) 1,019.00p -1.26%
888 Holdings (DI) (888) 142.70p -1.25%
Dunelm Group (DNLM) 834.50p -1.18%