London shares opened narrowly mixed on Tuesday, as worries about a wider global banking crisis eased, ahead of testimony to Parliament about Silicon Valley Bank by the governor of the Bank of England.
The FTSE 100 index opened 31.0 points, 0.4%, higher at 7,502.77. The FTSE 250 was down 9.63 points, 0.1%, at 18,519.99, and the AIM All-Share was down 0.96 of a point, 0.1%, at 797.52.
The Cboe UK 100 was up 0.3% at 750.04, the Cboe UK 250 was down 0.1% at 16,116.69, and the Cboe Small Companies was slightly higher at 13,296.82.
In European equities on Tuesday, the CAC 40 index in Paris was up 0.7%, while the DAX 40 in Frankfurt was up 0.6%.
The dollar was weaker, as the pound recovered to the $1.23 level.
Sterling was quoted at $1.2327 early Tuesday, up from $1.2268 at the London equities close on Monday. The euro traded at $1.0829, higher than $1.0782. Against the yen, the dollar was quoted at JP¥131.20 down versus JP¥131.50.
BoE Governor Andrew Bailey will address the UK Treasury Committee at 0945 BST about the collapse of Silicon Valley Bank, having spoken at the London School of Economics on Monday evening.
According to the latest British Retail Consortium-NielsenIQ tracker, UK shop price inflation accelerated to 8.9% in March from 8.4% in February. It takes the inflation rate to a new high, the BRC said.
Non-food price inflation quickened to 5.9% in March from 5.3% last month. Food price inflation picked up to 15% in March from 14.5% in February. Fresh food price inflation accelerated to 17% from 16.3%.
They were the highest-ever rates of price inflation for food and fresh food in the UK, the BRC said.
In the FTSE 100, Ocado was up 2.5%.
Ocado gave an update on its first quarter. In the 13 weeks to February 26, the online grocer and warehouse technology firm said retail revenue was up 3.4% year-on-year to £583.7 million, as average selling prices rose 8.3% to £2.75.
Average customer numbers grew 14% to 951,000, while average basket values edged up 0.2% to £124, but average basket sizes fell 7.5% to 45.
Ocado left guidance unchanged from the end of February, expecting mid-single digit growth in revenue, and ‘marginally’ positive earnings before interest, tax, depreciation and amortisation.
Gold was quoted at $1,952.23 an ounce early Tuesday, down a touch from $1,956.69 on Monday.
Brent oil was trading at $78.21 a barrel, higher than $75.91.
BP added 1.6%, as it announced plans to form a joint venture with Abu Dhabi National Oil Co to focus on gas development in areas of mutual interest, including the east Mediterranean.
As part of this, the two firms have offered to take NewMed Energy private.
Alcohol beverage maker Diageo slipped 0.6% as it said that, after 10 years in post, CEO Ivan Menezes has decided to retire from June 30.
The firm’s chief operating officer, Debra Crew, will become its new CEO from July 1. Crew is the former CEO of Reynolds American, after holding other senior roles at the cigarette maker. She spent five years at snacks and soft drinks maker PepsiCo, where she served in positions including president of North America Nutrition.
United Utilities fell 1.7% as it warned annual revenue will be around 1% lower than previous guidance, due to lower consumption.
In the FTSE 250, Synthomer plunged 14%.
The chemicals firm said it swung to an annual pretax loss of £47.6 million, compared to a profit of £283.9 million a year before. Revenue from continuing operations rose 11% to £2.38 billion from £2.14 billion.
Synthomer said it was continuing to see ‘subdued levels of demand across most of [its] end markets and geographies’, but expected things to improve in the second half.
The firm had suspended dividend payments back in October.
Elsewhere, 888 Holdings fell 1.8%.
This follows news that three gambling businesses owned by William Hill will pay a total of £19.2 million fine for ‘widespread and alarming’ social responsibility and anti-money laundering failures.
The Gambling Commission said the settlement was the largest in its history.
An 888 spokesperson stressed the settlement related to a period when the businesses were under previous ownership and management.
‘After William Hill was acquired, the company quickly addressed the identified issues with the implementation of a rigorous action plan,’ they said.
On AIM, Unbound Group shares surged 90% to 7.60 pence.
The footwear retailer said it was in discussions with clothing company WoolOvers Group about a potential takeover offer at 10.5p per share.
Unbound said it would be minded to accept an offer on such terms, which represents a hefty premium to Monday’s closing price of 4p.
In the US on Monday, Wall Street ended mixed, with the Dow Jones Industrial Average up 0.6% and the S&P 500 up 0.2%. Banking stocks rallied but tech stocks struggled, with the Nasdaq Composite down 0.5%.
In Asia on Tuesday, the Nikkei 225 index closed up 0.2%. In China, the Shanghai Composite closed down 0.2%, while the Hang Seng index in Hong Kong was up 1.1%. The S&P/ASX 200 in Sydney closed up 1.0%.
In Tuesday’s economic calendar, there is a US consumer confidence survey at 1500 BST, after a house price index reading at 1400 BST.
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