London open: Stocks gain after UK inflation data; Flutter surges

(Sharecast News) - London stocks rose in early trade on Wednesday as the latest UK inflation data boosted rate cut expectations. At 0850 BST, the FTSE 100 was up 0.5% at 8,279.44, while sterling was down 0.1% against the dollar at 1.2844.

Data released earlier by the Office for National Statistics showed that consumer price inflation rose in July for the first time since December, but less than expected.

CPI rose by 2.2%, up from 2% in June and May but coming in below expectations of 2.3%. It is now back above the Bank of England's 2% target.

The ONS said the largest upward contribution came from housing and household services where prices of gas and electricity fell by less than they did last year. The largest downward contribution came from restaurants and hotels, where prices of hotels fell this year having risen last year.

The figures also showed that core CPI - which strips out food, energy, alcohol and tobacco - fell to 3.3% in July from 3.5% in June.

Meanwhile, the CPI services annual rate fell to 5.2% in July from 5.7% a month earlier.

Grant Fitzner, chief economist at the ONS, said: "Inflation ticked up a little in July as although domestic energy costs fell, they fell by less than a year ago.

"This was partially offset by hotel costs, which fell in July after strong growth in June."

Ruth Gregory, deputy chief UK economist at Capital Economics, said the smaller-than-expected rise in CPI inflation and the sharp fall in services inflation to a two-year low "will reassure the Bank of England that the disinflation process is on track and opens the door to more interest rate cuts later this year".

In equity markets, Flutter Entertainment surged to the top of the FTSE 100, having said late on Tuesday that it was lifting full-year guidance after a better-than-expected second-quarter performance.

The company now expects US revenue of between $6.05bn and $6.35bn and adjusted EBITDA of $680m to $800m. This is up from previous guidance of $5.8bn to $6.2bn revenue and adjusted EBITDA of $635m to $785m.

Revenue outside the US is expected to be between $7.85bn and $8.15bn, while adjusted EBITDA is set to be $1.69bn to $1.85bn. This is up from previous guidance of $7.65bn to $8.05bn and $1.63bn to $1.83bn, respectively.

Ladbrokes owner Entain also gained.

Infrastructure company Balfour Beatty edged down even as it lifted its dividend by 9% and said it expected annual earnings to grow after an increase in half-year profit.

Aviva was also a little weaker despite reporting a 14% rise in interim operating profits.

Market Movers

FTSE 100 (UKX) 8,279.44 0.54% FTSE 250 (MCX) 20,851.71 0.52% techMARK (TASX) 4,898.48 1.28%

FTSE 100 - Risers

Flutter Entertainment (DI) (FLTR) 16,400.00p 11.91% Entain (ENT) 595.40p 2.41% Smurfit Westrock (DI) (SWR) 3,148.00p 2.04% Persimmon (PSN) 1,642.00p 1.99% Rightmove (RMV) 546.00p 1.71% Barratt Developments (BDEV) 538.00p 1.70% Taylor Wimpey (TW.) 160.70p 1.39% Sainsbury (J) (SBRY) 278.00p 1.39% Land Securities Group (LAND) 626.50p 1.38% Hikma Pharmaceuticals (HIK) 2,016.00p 1.36%

FTSE 100 - Fallers

Rio Tinto (RIO) 4,856.00p -1.48% Anglo American (AAL) 2,203.50p -1.25% Glencore (GLEN) 403.30p -0.52% Antofagasta (ANTO) 1,829.00p -0.52% Beazley (BEZ) 730.50p -0.48% Aviva (AV.) 486.30p -0.47% Smith (DS) (SMDS) 443.60p -0.31% Standard Chartered (STAN) 731.20p -0.08% RELX FINANCE BV 3.375% GTD NTS 20/03/33 (BW73) 99.72p 0.00% Fresnillo (FRES) 543.00p 0.00%

FTSE 250 - Risers

Jupiter Fund Management (JUP) 81.50p 4.35% Discoverie Group (DSCV) 656.00p 3.63% SSP Group (SSPG) 171.30p 3.50% Crest Nicholson Holdings (CRST) 215.60p 3.26% PZ Cussons (PZC) 105.00p 2.14% Kier Group (KIE) 152.80p 2.14% Hilton Food Group (HFG) 925.00p 2.10% Ashmore Group (ASHM) 170.90p 2.09% Domino's Pizza Group (DOM) 302.60p 1.89% Redrow (RDW) 764.00p 1.87%

FTSE 250 - Fallers

Helios Towers (HTWS) 117.00p -3.31% Just Group (JUST) 131.40p -2.23% BlackRock World Mining Trust (BRWM) 524.00p -1.50% Fidelity China Special Situations (FCSS) 187.40p -1.37% BH Macro Ltd. GBP Shares (BHMG) 392.00p -1.26% Vietnam Enterprise Investments (DI) (VEIL) 561.00p -0.88% Syncona Limited NPV (SYNC) 115.60p -0.86% Bellevue Healthcare Trust (Red) (BBH) 151.00p -0.79% Alpha Group International (ALPH) 2,375.00p -0.63% Balfour Beatty (BBY) 407.20p -0.59%