FTSE 100 movers: Ashtead boosted by Merrill note; TUI slumps.

London’s FTSE 100 was up 0.4% to 7,296.80 in afternoon trade, as investors digested news that UK wage growth has slowed but unemployment has picked up.

Rental equipment supplier Ashtead got a boost as Bank of America Merrill Lynch upped its price target on the stock to 2,000p from 1,620p and reiterated its ‘buy’ rating.

The bank said Ashtead remains an attractive long-term investment opportunity, offering around 20% earnings per share compound annual growth rate for an attractive price-to-earnings rating of 12.6x to April 2018.

Banks were among the top performers on Wednesday, underpinned by signals that the US could raise rates sooner than expected, with Barclays, RBS and Standard Chartered all in the black.

Yellen said on Tuesday that a "rate increase will likely be appropriate in upcoming meetings" if the economic recovery stays on course, which saw the dollar rally and US stocks hit new records.

On the downside, Anglo-German travel group TUI was under the cosh after a Hanover court ruling over flight compensation due to a dispute over staff sick days.

Paddy Power Betfair fell on the back of a downgrade by HSBC, which said it and other bookmakers face a consumer spending slowdown and a series of other risks in the coming months.

Risers

Ashtead Group (AHT) 1,719.00p 3.18%
Barclays (BARC) 240.30p 2.15%
BHP Billiton (BLT) 1,420.00p 2.01%
Royal Bank of Scotland Group (RBS) 245.30p 1.78%
Lloyds Banking Group (LLOY) 67.60p 1.67%
Standard Chartered (STAN) 810.10p 1.41%
Mediclinic International (MDC) 831.00p 1.34%
AstraZeneca (AZN) 4,686.50p 1.31%
HSBC Holdings (HSBA) 705.40p 1.18%
Prudential (PRU) 1,636.50p 1.14%

Fallers

TUI AG Reg Shs (DI) (TUI) 1,132.00p -7.06%
Capita (CPI) 510.50p -3.13%
Next (NXT) 3,871.00p -2.07%
Paddy Power Betfair (PPB) 8,375.00p -2.05%
Marks & Spencer Group (MKS) 330.50p -1.78%
Convatec Group (CTEC) 234.90p -1.30%
Fresnillo (FRES) 1,506.00p -1.18%
Informa (INF) 655.50p -1.13%
Micro Focus International (MCRO) 2,194.00p -1.08%
Dixons Carphone (DC.) 309.90p -0.99%