London midday: Stocks pare gains as insurers slump
Stocks in London were little changed by midday on Monday, paring earlier gains as weakness in the insurance sector weighed on the index.
The FTSE 100 was up 0.4% to 7,273.55. The index had been trading a little higher earlier, benefiting from weakness in the pound, which was hit by reports that Scotland could call for another referendum.
Sterling fell 0.4% versus the dollar to 1.2417 and 0.6% against the euro to 1.1730.
Joshua Mahony at IG said: "The pound has seen substantial selling at the open today, following reports that Theresa May will push for the almost certain Scottish referendum to take place post-Brexit. This is all about leverage, with a united Britain representing a stronger hand when it comes to Brexit negotiations.
"At a time when businesses and individuals alike are struggling to prepare for the UK’s exit of the EU, there is a good chance they will also have to deal with the breakup of the UK, should the Scottish choose to leave."
In corporate news, insurers were under the cosh after the Ministry of Justice said the discount rate used to calculate lump sum payouts has been cut to -0.75% from the 2.5% rate that was in place since 2001. Direct Line and Admiral were in the red as the change in the rate will mean insurers will have to pay out more to personal injury claimants.
The London Stock Exchange Group dropped after it said on Sunday that it did not think its proposed merger with Deutsche Börse will be approved by the European Commission, after competition regulators came up with "unexpected" demands last week.
On the upside, housebuilder Persimmon rallied as it reported a rise in 2016 revenue and pre-tax profit and said it remained on track with its growth strategy and aims to further increase its capital return plan to shareholders.
Primark owner Associated British Foods gained after saying it expects "excellent progress" in profits and earnings this year, with growth in all parts of the business in the first half and a further boost from exchange rates.
Distribution and outsourcing company Bunzl advanced as it reported a 12% jump in full-year pre-tax profit to £362.9m, boosted by the post-Brexit vote slump in the pound.
Dechra Pharmaceuticals pushed up as it hiked its dividend by 10% and said profit in the first half grew.
IMI got a boost as Credit Suisse reiterated its 'outperform' rating on the stock and lifted the price target to 1,300p from 1,220p, while Essentra benefited from an upgrade by Deutsche Bank.
Rotork racked up healthy gains after it posted a drop in full-year pre-tax profit and adjusted operating profit as underlying revenue fell, but noted an improvement in the trading environment.
There are no major UK data releases due, but in the US, durable goods orders are at 1330 GMT and pending home sales are at 1500 GMT.
Consumer confidence improved slightly in the UK in February despite increasing worries about inflation, European Commission data revealed, while eurozone economic sentiment remained broadly flat.
The rise in UK consumer confidence was slight, with the confidence index edging up to -4.3 in January after dipping to -5.1 in January from -4.6 in December and September’s post-referendum peak of -1.7.
Investors will be looking for more volatility on Tuesday, as eyes turn to US President Trump as he addresses Congress, for hints on his plans to reform the tax code and healthcare system.
Market Movers
FTSE 100 (UKX) 7,253.53 0.14%
FTSE 250 (MCX) 18,614.88 0.14%
techMARK (TASX) 3,364.47 -0.06%
FTSE 100 - Risers
Bunzl (BNZL) 2,218.00p 2.16%
Anglo American (AAL) 1,269.00p 1.32%
Unilever (ULVR) 3,819.50p 1.23%
Convatec Group (CTEC) 234.50p 1.21%
BP (BP.) 451.95p 1.08%
CRH (CRH) 2,694.00p 1.01%
BHP Billiton (BLT) 1,320.00p 0.92%
Royal Dutch Shell 'B' (RDSB) 2,184.50p 0.85%
Smurfit Kappa Group (SKG) 2,137.00p 0.85%
Micro Focus International (MCRO) 2,204.00p 0.82%
FTSE 100 - Fallers
Direct Line Insurance Group (DLG) 335.90p -7.87%
Admiral Group (ADM) 1,815.00p -2.94%
London Stock Exchange Group (LSE) 3,042.00p -2.66%
Royal Bank of Scotland Group (RBS) 234.40p -1.60%
Randgold Resources Ltd. (RRS) 7,560.00p -1.18%
Barratt Developments (BDEV) 507.50p -1.17%
Fresnillo (FRES) 1,508.00p -1.11%
Severn Trent (SVT) 2,319.00p -1.11%
SSE (SSE) 1,530.00p -1.10%
Taylor Wimpey (TW.) 175.20p -1.07%
FTSE 250 - Risers
IMI (IMI) 1,267.00p 4.62%
Dechra Pharmaceuticals (DPH) 1,601.00p 3.96%
National Express Group (NEX) 365.10p 3.75%
Vesuvius (VSVS) 459.00p 3.17%
Evraz (EVR) 235.70p 2.97%
esure Group (ESUR) 213.20p 2.75%
Rotork (ROR) 242.10p 2.67%
Moneysupermarket.com Group (MONY) 347.00p 2.48%
Millennium & Copthorne Hotels (MLC) 443.20p 2.17%
Tullow Oil (TLW) 270.20p 1.92%
FTSE 250 - Fallers
Kaz Minerals (KAZ) 516.50p -5.66%
IP Group (IPO) 160.00p -3.21%
Senior (SNR) 181.40p -2.99%
Inmarsat (ISAT) 681.50p -2.92%
Centamin (DI) (CEY) 172.00p -2.60%
Capital & Counties Properties (CAPC) 290.20p -2.42%
Hill & Smith Holdings (HILS) 1,086.00p -2.16%
Ferrexpo (FXPO) 157.80p -1.87%
CYBG (CYBG) 265.00p -1.82%
Vedanta Resources (VED) 869.50p -1.75%