London shut: Shares increased after one other excessive US inflation learn


the FTSE100 ended the session up 0.38% at 7,672.40 and the FTSE250 was 0.11% firmer at 22,207.75.

Sterling was also in the green, last trading up 0.71% against the dollar at $1.3631 and up 0.17% against the euro at €1.1868.

“Recent US inflation data put a brief damper on the recovery in US markets but failed to drag indices lower for an extended period,” said Chris Beauchamp, chief markets analyst at IG.

“Right now it looks like the market has gotten used to these high CPI readings, although the odds of a 50 basis point hike at the next Fed meeting have increased dramatically.

“It still looks like there won’t be a repeat of January’s sell-off – rising prices have been factored into the outlook and despite some volatility, investors seem confident companies can continue to pass those price increases on to customers.”

Across the pond, the cost of living in the United States rose faster than expected at the start of 2022 amid broad-based gains across categories of goods and services.

According to the Labor Department, the seasonally adjusted consumer price index rose a seasonally adjusted 0.6% month-on-month in January, beating market expectations of a 0.5% rise.

This pushed the CPI annual growth rate down to 7.5% from 7.1% in the previous month, with food and energy prices rising 0.9% over the month.

Still in the US, the number of Americans filing for the first time fell slightly more than expected last week.

The Labor Department said initial jobless claims fell a seasonally adjusted 16,000 to 223,000 in the week ended February 5.

Barclays Research economists put the figure at 230,000.

Elsewhere, the European Commission has lowered its economic growth forecasts for 2022 after a weaker-than-expected start to the year.

The European Commission said it now expects the EU and eurozone to grow by 4.0% in 2022 and by 2.8% and 2.7% in 2023, respectively.

Last fall, it forecast that the common currency area and broader bloc would grow 4.3% in 2022.

“The EU economy started the new year weaker than previously forecast,” said the Commission in its winter forecast.

“After recovering to pre-pandemic production levels last summer, a moderate slowdown was already expected in the fall forecast.

“Since then, however, headwinds to growth have intensified.”

On home shores, the UK housing market got off to a strong start to 2022, with the latest housing market survey from the Royal Institution of Chartered Surveyors showing a net balance of 74% of respondents who saw house prices rise in January.

That was an improvement from December’s reading of 69%, with consensus for no change.

A net balance of 16% also indicated that demand from new buyers had increased compared to the December balance of 9% and was the strongest since May when the stamp duty holiday was still in full effect.

However, RICS conceded that the January survey was conducted before the Bank of England hiked interest rates to 0.5% for a second consecutive month in early February.

“The increase in new market valuations is an encouraging signal that more supply may be channeled into the market in the coming months, but it remains to be seen whether an increase in this area is enough to match robust demand developments,” said Simon Rubinsohn , RICS Chief Economist.

“Nevertheless, there is an inevitable market of questions about the impact of rising interest rates coupled with the rise in the cost of living on homebuyer sentiment.

“For now, signals on the outlook for both prices and rents remain somewhat worrying.”

On the stock markets To inform Soared 7.43% after it announced the sale of its pharma intelligence business to investment firm Warburg Pincus for £1.9 billion and the start of a share buyback program.

AstraZeneca Soared 3.42% after announcing an increase in its annual dividend and an upbeat outlook as the pharmaceutical company posted a fourth-quarter loss on higher expenses.

Regulatory managed gains of 0.53% after it said it was looking for a new boss as CEO Mike Wells decided to retire at the end of March after seven years at the helm.

dark trail jumped 3.42% after an electronics multinational signed a million-dollar deal with the cybersecurity firm.

Miners were among the winners as metal prices surged Antofagasta up 4.22%, Rio Tinto increase of 2.38% and Anglo-American up 2.32%.

Travel-related shares were also up with low-cost airlines WizzAir and easyJet increasing 6.5% and 3.94%, cinema world Adding 4.41% and Travel Gastronomy SSP 2.36% higher.

On the other hand, information providers Relax down 1.9% even after it increased its dividend by 6%, a $500 million share buyback

redraw ended down 1.28%, despite reporting a 17% rise in interim profit and record sales amid strong demand, and raising its 2024 guidance.

beazley reversed earlier gains to finish down 2.09% even after swinging to a full-year gain on strong demand in the cyber market.

Syncona also gave up morning prepayments and fell 5.23%, despite a 16% increase in net asset value in the third quarter.

consumer goods giant unilever fell 1/29% after underlying sales rose 4.9% in the fourth quarter and announced a €3 billion share buyback but warned of the ongoing impact of cost inflation and Covid-19 Pandemic.

It also said it would not be making any acquisitions for the foreseeable future, having received three bids for GlaxoSmithKline‘s Consumer Health Arm rejected.

market mover

FTSE 100 (UKX) 7,672.40 0.38%
FTSE 250 (MCX) 22,207.75 0.11%
techMARK (TASX) 4,454.23 0.16%

FTSE 100 – risers

Reports (INF) 615.80p 7.43%
Antofagasta (ANTO) 1,344.50p 4.22%
Airtel Africa (AAF) 144.20p 3.52%
AstraZeneca (AZN) 8,650.00 p.p 3.42%
Polymetal International (POLY) 1,128.00p 3.34%
Smurfit Kappa Group (CDI) (SKG) 4,149.00p 2.93%
ITV (ITV) 123.25p 2.92%
Pearson (PSON) 641.40 p 2.47%
Blacksmith (DS) (SMDS) 386.20 p 2.44%
Rolls Royce Holdings (RR.) 122.72p 2.39%

FTSE 100 – Faller

Evraz (EVR) 431.70p -2.99%
Dechra Pharmaceuticals (DPH) 3,890.00 p.p -2.16%
Relx AG (REL) 2,267.00p -1.90%
Intermediate Capital Group (ICP) 1,854.00p -1.80%
Royal Mail (RMG) 440.60p -1.78%
JD Sportswear (JD.) 178.85p -1.68%
Abrdn (ABDN) 248.70 p -1.62%
Auto Trader Group (AUTO) 647.80 p -1.37%
Unilever (ULVR) 3,775.00p -1.29%
Admiral Group (ADM) 3,029.00p -1.24%

FTSE 250 – Risers

Wizz Air Holdings (WIZZ) 4,849.00p 6.50%
Chrysalis Investments Limited NPV (CHRY) 189.00p 4.71%
Cineworld Group (CINE) 41.00p 4.41%
easyJet (EZJ) 727.40 p 3.94%
Dark Track (DARK) 411.80p 3.42%
Bridgepoint Group (Reg S) (BPT) 375.50p 2.87%
Micro Focus International (MCRO) 466.10p 2.80%
Ferrexpo (FXPO) 287.00p 2.79%
Euromoney Institutional Investor (ERM) 963.00 p 2.77%
Contour global (GLO) 185.80p 2.65%

FTSE 250 – Faller

Hipgnosis Songs Fund Limited C Shs NPV (SONC) 112.50p -100.00%
Syncona Limited NPV (SYNC) 185.00 p.p -5.23%
Trustpilot Group (TRST) 162.60p -4.86%
Renishaw (RSW) 4,856.00p -3.00%
Brewin Dolphin Holdings (BRW) 323.50p -2.71%
Games Workshop Group (GAW) 8,145.00p -2.58%
Oxford Instruments (OXIG) 2,095.00p -2.57%
Aberforth Smaller Companies Trust (ASL) 1,428.00p -2.46%
Close Brothers Group (CBG) 1,296.00p -2.42%
Petershill Partners (PHLL) 220.00 p.p -2.26%