London open: Stocks edge up ahead of inflation data; NMC Health recovers
London equity markets edged tentatively higher in early trade on Wednesday as investors eyed the release of key inflation data, but domestic stocks such as housebuilders remained under cosh amid worries about a no-deal Brexit.
At 0840 GMT, the FTSE 100 was up 0.2% at 7,543.07, while the pound was down 0.2% against the dollar at 1.3110 and flat versus the euro at 1.1773.
Neil Wilson, chief market analyst at Markets.com, said: "Sterling has completely retraced the election night move now, with cable again taking a 1.30 handle. The abrupt shift is because Boris Johnson is said to be legislating to compel his own government to exit the transition arrangements with the EU in Dec 2020, with a deal in place or not.
"This seems an odd move. It creates new cliff edge and no-deal risk - the pound’s abrupt unwinding is a sign the market thinks so. And it’s pointless to from a technical perspective (hence why it appears odd), as Boris can go back on it anytime should it be required.
"We should look at this for what it really is: legislation that can be overturned with a one-line bill at any stage should the need arise. Boris as we’ve argued is no arch-Brexiter and has shown little appetite (despite the war drums) of leaving without a deal. This is more about sending a message to new Tory leave voters - campaign 2024 begins now. And it’s about sending a message to the EU again that no deal is always on the table."
On the macro front, the consumer price index, producer price index and retail price index are all due at 0930 GMT.
In equity markets, Abu Dhabi-based healthcare operator NMC Health was the standout gainer on the FTSE 100, recovering from heavy losses a day earlier when it was hit by a damning report from research firm and short-seller Muddy Waters, which said it had "serious doubts" about the company’s financial statements. NMC hit back on Wednesday, reaffirming its guidance for 2019 and 2020 and insisting that the accusations were "unfounded".
Pearson was also a high riser after the education publisher said chief executive John Fallon was stepping down and announced that it was selling its remaining 25% stake in Penguin Random House to partner Bertelsmann for $675m (£530m). The company said it would return £350m to shareholders through a buyback.
Boeing supplier Senior was in the green, having slumped on Wednesday after Boeing said it would suspend production of its 737 MAX jet.
Finablr also gained after saying it remained on track to achieve the guidance set out at its IPO and said there was no financial or operational reason for the recent volatility in its share price.
On the downside, housebuilders were the biggest losers, with Barratt, Persimmon, Berkeley and Taylor Wimpey all weaker amid renewed concerns about a possible no-deal Brexit.
Market Movers
FTSE 100 (UKX) 7,543.07 0.24%
FTSE 250 (MCX) 21,590.67 -0.46%
techMARK (TASX) 4,138.26 -0.03%
FTSE 100 - Risers
NMC Health (NMC) 1,827.50p 4.58%
Pearson (PSON) 672.40p 4.41%
Fresnillo (FRES) 591.60p 1.27%
Imperial Brands (IMB) 1,796.20p 1.24%
Ashtead Group (AHT) 2,397.00p 1.22%
Reckitt Benckiser Group (RB.) 6,091.00p 1.16%
Bunzl (BNZL) 2,097.00p 1.16%
Compass Group (CPG) 1,890.50p 1.15%
GlaxoSmithKline (GSK) 1,797.40p 1.08%
BAE Systems (BA.) 573.60p 1.06%
FTSE 100 - Fallers
Flutter Entertainment (FLTR) 8,608.00p -2.76%
Barratt Developments (BDEV) 744.00p -2.08%
Persimmon (PSN) 2,681.00p -1.47%
Land Securities Group (LAND) 952.40p -1.39%
Berkeley Group Holdings (The) (BKG) 5,018.00p -1.26%
Meggitt (MGGT) 651.80p -1.21%
British Land Company (BLND) 596.60p -1.19%
Legal & General Group (LGEN) 310.80p -1.11%
Ocado Group (OCDO) 1,226.00p -0.97%
Morrison (Wm) Supermarkets (MRW) 197.40p -0.93%
FTSE 250 - Risers
Cairn Energy (CNE) 198.10p 4.81%
Senior (SNR) 172.00p 3.80%
Finablr (FIN) 189.90p 1.39%
Tullow Oil (TLW) 64.36p 1.16%
TI Fluid Systems (TIFS) 245.50p 1.03%
Sirius Real Estate Ltd. (SRE) 84.00p 0.96%
Wood Group (John) (WG.) 384.80p 0.87%
Cineworld Group (CINE) 225.10p 0.85%
Centamin (DI) (CEY) 118.15p 0.77%
Essentra (ESNT) 433.20p 0.65%
FTSE 250 - Fallers
PureTech Health (PRTC) 264.00p -4.69%
Oxford Instruments (OXIG) 1,430.00p -3.77%
St. Modwen Properties (SMP) 469.50p -3.10%
National Express Group (NEX) 455.20p -2.94%
Derwent London (DLN) 3,754.00p -2.85%
PayPoint (PAY) 986.00p -2.76%
Hilton Food Group (HFG) 1,026.00p -2.66%
Contour Global (GLO) 192.80p -2.63%
Watches of Switzerland Group (WOSG) 312.20p -2.44%
IntegraFin Holding (IHP) 445.00p -2.41%