London midday: Stocks pare losses to trade flat but WPP weighs
London stocks had pared losses to trade flat by midday on Thursday, but the FTSE 100 was underperforming its European peers as disappointing results from advertising giant WPP weighed.
The FTSE 100 was steady at 6,963.9, while the pound was up 0.1% against the dollar at 1.2896 and unchanged versus the euro at 1.1303.
The main European indices fared a lot better, however, despite heavy losses in the US and Asia, as investors eyed the latest policy announcement from the European Central Bank. The resilience of European markets was attributed in part to reports that the Italian government is prepared to step in and help struggling banks with rising bond yields.
According to reports, Deputy Prime Minister Matteo Salvini has pledged support for any company or bank that needs it.
IG's chief market analyst, Chris Beauchamp, said: "Somewhat contrary to expectations, a strange calm has descended across European markets, belying the volatility of the US and Asian sessions. US futures are looking perkier, and European indices are holding their ground for the time being. The problem is that most of the selling of late has taken place in the US, and until American investors have decided to stop selling and start buying, European markets will remain under pressure.
"Some brave souls are probably hoping that the ECB will provide some warm words at its meeting today, but a change in policy from the bank seems very unlikely even as the standoff between Rome and Brussels threatens to turn into something much more serious. As with Brexit, neither side appears willing to step back from the edge, threatening much more trouble down the line."
In UK corporate news, Evraz was the top performer even as the steel maker said consolidated output fell 10.3% in the third quarter.
Lloyds Banking Group was in the green as it reported flat underlying profits for the third quarter and revealed that chief financial officer George Culmer will retire next year.
Kaz Minerals surged as it reported a jump in third-quarter copper production while Aveva rose after the engineering and industrial software provider said it continued to perform well in the first half of its financial year.
Polypipe reversed course to trade sharply higher after announcing the acquisition of Manthorpe Building Products, which makes moulded and extruded plastic and metal products for the UK and Irish markets, for £52m.
Relx ticked up after reporting a 4% increase in nine-month underlying revenue while chemicals company Elementis gained after saying it had delivered a "resilient" third quarter.
Outside the FTSE 350, embattled department store group Debenhams hit a new all-time low in early trading but pushed higher as it unveiled more aggressive restructuring plans, with up to 50 stores to be closed in the coming three-to-five years.
On the downside, advertising group WPP tumbled as it posted a drop in third-quarter revenues, cut its full-year revenue guidance and announced plans to sell a stake in its data division.
Hastings Group also suffered heavy losses as the insurer reported a rise in nine-month gross written premiums but struck a cautious note on the wider outlook for the market.
The appointment of Philip Jansen, ex of Worldpay, as new chief executive of BT Group did nothing to help the shares.
In broker note action, Segro was upgraded to 'add' at AlphaValue. Anglo American was boosted to 'buy' at SocGen, but Rio Tinto was cut to 'hold'. Informa was upgraded to 'add' at Peel Hunt and CYBG was bumped up to 'neutral' from 'sell' at UBS.
Ferguson, ITV, Rolls-Royce, Coats Group, Dechra, Howden Joinery, JD Wetherspoon and William Hill were among the companies whose stock went ex-dividend.
Market Movers
FTSE 100 (UKX) 6,963.90 0.01%
FTSE 250 (MCX) 18,460.84 0.30%
techMARK (TASX) 3,238.75 -0.83%
FTSE 100 - Risers
Evraz (EVR) 547.00p 4.91%
Antofagasta (ANTO) 752.00p 3.41%
Imperial Brands (IMB) 2,728.00p 3.12%
Burberry Group (BRBY) 1,718.50p 2.78%
Lloyds Banking Group (LLOY) 57.97p 2.31%
Bunzl (BNZL) 2,245.00p 2.14%
Mondi (MNDI) 1,780.50p 2.03%
Schroders (SDR) 2,660.00p 1.99%
CRH (CRH) 2,122.00p 1.97%
Standard Chartered (STAN) 529.70p 1.90%
FTSE 100 - Fallers
WPP (WPP) 871.20p -17.50%
AstraZeneca (AZN) 5,684.00p -4.16%
Shire Plc (SHP) 4,334.50p -3.36%
ITV (ITV) 146.25p -3.24%
BT Group (BT.A) 242.30p -3.16%
GlaxoSmithKline (GSK) 1,523.40p -1.88%
SEGRO (SGRO) 618.60p -1.50%
Reckitt Benckiser Group (RB.) 6,650.00p -1.17%
Ferguson (FERG) 5,157.00p -1.11%
Scottish Mortgage Inv Trust (SMT) 461.10p -1.05%
FTSE 250 - Risers
Kaz Minerals (KAZ) 487.70p 9.11%
Just Group (JUST) 80.90p 8.81%
Polypipe Group (PLP) 333.80p 8.45%
Thomas Cook Group (TCG) 45.46p 4.46%
IWG (IWG) 230.10p 4.21%
CYBG (CYBG) 263.00p 3.95%
Playtech (PTEC) 461.44p 3.81%
AA (AA.) 101.65p 3.07%
Sanne Group (SNN) 572.00p 3.06%
Go-Ahead Group (GOG) 1,560.00p 2.50%
FTSE 250 - Fallers
Hastings Group Holdings (HSTG) 200.31p -9.12%
Stobart Group Ltd. (STOB) 207.50p -4.82%
Sirius Minerals (SXX) 21.78p -3.97%
Metro Bank (MTRO) 2,180.00p -3.45%
Pershing Square Holdings Ltd NPV (PSH) 1,063.00p -3.01%
Worldwide Healthcare Trust (WWH) 2,518.25p -2.96%
Greencore Group (GNC) 181.10p -2.66%
JPMorgan Japanese Inv Trust (JFJ) 402.00p -2.43%
Dechra Pharmaceuticals (DPH) 2,152.00p -2.36%
Synthomer (SYNT) 421.40p -2.32%