London open: Stocks unchanged ahead of Eurozone CPI, US GDP

UK stocks opened more or less flat on Friday as investors treaded cautiously ahead of some key economic data, including consumer price figures in the Eurozone and growth estimates in the States.

London’s FTSE 100 was down just 0.04% at 6,808 early on.

The release of the Eurozone consumer-price index (CPI) is likely to be the main event of the morning for UK markets, amid expectations that the region fell further into deflation this month.

Consumer prices are expected to have fallen by an annual rate of 0.5% in January, after a 0.2% fall in December, adding pressure on the European Central Bank to act to stem falling prices and boost growth.

Data released on Thursday showed that Germany, the Eurozone’s largest economy, officially fell into deflation this month.

The preliminary estimate of fourth-quarter US gross domestic product (GDP) is due out later on and is forecast to show that the annualised rate of expansion eased to 3% from 5% in the third quarter.

UK mortgage approvals and the University of Michigan US consumer-confidence index will also be in focus on Friday.

Qatar Airways invests in IAG, miners gain

British Airways and Iberia owner International Airlines Group (IAG) was higher after it was revealed that Qatar Airways has bought a 9.99% stake in the company. ”We're delighted to have Qatar Airways, one of the world's premier airlines, as a long-term supportive shareholder,” said chief executive Willie Walsh.

Mining stocks were performing well with Fresnillo and Randgold advancing after heavy falls on Thursday. Anglo American, BHP Billiton and Rio Tinto were also higher.

Telecoms giant BT declined despite beating analysts forecasts with a solid rise in profits in its third quarter, as it announced a new 16-year “recovery plan” to pay down its expanding pension deficit, which now stands at £7bn. The company also revealed that it would upgrade its fibre network with large-scale pilots this summer of ultrafast broadband with G.fast.

Supermarket stocks were also under pressure, with Sainsbury, Morrison and Tesco among the worst performers.

Oilfield services group Petrofac gained after Exane BNP Paribas upgraded its rating on the stock to ‘outperform’, though it did cut its target price from 1,050p to 850p. Kingfisher declined after the same broker cut the DIY retailer to ‘neutral’.

Market Movers
techMARK 3,079.76 -0.09%
FTSE 100 6,807.69 -0.04%
FTSE 250 16,399.45 +0.25%

FTSE 100 - Risers
Weir Group (WEIR) 1,686.00p +2.43%
Fresnillo (FRES) 880.00p +2.03%
Dixons Carphone (DC.) 432.60p +1.98%
Randgold Resources Ltd. (RRS) 5,520.00p +1.84%
Anglo American (AAL) 1,115.00p +1.59%
InterContinental Hotels Group (IHG) 2,691.00p +1.24%
Royal Mail (RMG) 439.80p +1.17%
BHP Billiton (BLT) 1,428.50p +1.06%
easyJet (EZJ) 1,895.00p +1.01%
Whitbread (WTB) 5,050.00p +1.00%

FTSE 100 - Fallers
Sainsbury (J) (SBRY) 258.10p -2.16%
Morrison (Wm) Supermarkets (MRW) 181.50p -1.84%
BT Group (BT.A) 421.50p -1.77%
Hargreaves Lansdown (HL.) 1,022.00p -1.06%
Tesco (TSCO) 224.80p -0.97%
Severn Trent (SVT) 2,179.00p -0.91%
Royal Dutch Shell 'A' (RDSA) 2,041.50p -0.90%
Royal Dutch Shell 'B' (RDSB) 2,119.50p -0.87%
Diageo (DGE) 2,005.00p -0.87%
Antofagasta (ANTO) 649.50p -0.84%

FTSE 250 - Risers
Afren (AFR) 4.50p +7.14%
Greencore Group (GNC) 311.00p +2.64%
Lonmin (LMI) 164.50p +2.17%
Britvic (BVIC) 709.00p +2.16%
Petrofac Ltd. (PFC) 682.00p +2.02%
Ophir Energy (OPHR) 131.00p +1.95%
AL Noor Hospitals Group (ANH) 909.50p +1.85%
Halfords Group (HFD) 445.00p +1.83%
Enterprise Inns (ETI) 106.60p +1.81%
Howden Joinery Group (HWDN) 437.30p +1.75%

FTSE 250 - Fallers
Rank Group (RNK) 172.40p -3.15%
Vedanta Resources (VED) 360.00p -2.96%
Nostrum Oil & Gas (NOG) 584.00p -2.42%
Cobham (COB) 336.00p -2.13%
IP Group (IPO) 229.10p -1.88%
Brit (BRIT) 259.80p -1.78%
Go-Ahead Group (GOG) 2,481.00p -1.63%
Evraz (EVR) 170.20p -1.45%
Alent (ALNT) 360.70p -1.29%
Synergy Health (SYR) 2,147.00p -1.29%