UK shares dipped into negative territory at midday Tuesday as investors awaited the two-day policy meeting of the US Federal Reserve where it is expected to reiterate its easy monetary policy.
However, there are lingering worries that rising inflation expectations and higher commodity prices could push the bank into earlier than expected tightening.
At 12pm, the FTSE 100 was 0.2% lower at 6,948 points while the FTSE 250 was down 0.6% at 22,449 points.
CORPORATE NEWS
BP (BP.) rallied 1.2% to 300.2p after the oil major said it would start a $500 million share buyback programme in the second quarter after reporting a forecast-beating rise in first quarter profit and delivering on its net debt reduction target ‘around a year early’.
Banking behemoth HSBC (HSBA) gained 2.5% to 433.2p on materially better than expected first quarter results that revealed a strong recovery in profitability driven by net provision releases.
‘The execution of our growth and transformation plans is proceeding well,’ insisted CEO Noel Quinn, adding that ‘the economic outlook has improved, although uncertainties remain. We carry good momentum into the second quarter, while maintaining conservative positions on capital, funding, liquidity and credit.’
Premier Inn hotel chain owner Whitbread (WTB) fell 3.4% to £23.96, having racked up a £1 billion annual loss after the pandemic devastated the tourism sector.
Whitbread said 92% of its UK hotels are now open and that it is banking on a surge in British ‘staycations’ to improve its fortunes during the upcoming summer.
Engineering and industrial software company Aveva (AVV) reversed 4.3% to £37.38 on revealing that its full year revenue was flat, following a partial recovery in the second half.
SERCO UPGRADES GUIDANCE
Support services firm Serco (SRP) improved 0.2% to 141.7p as it upgraded full year guidance and announced the completion of its WBB USA defence services acquisition as well as two UK contract wins with the Department for Work & Pensions (DWP) worth some £350 million over a four and a half years.
Branded consumer goods group PZ Cussons (PZC) dipped 0.1% to 268.3p on an encouraging third quarter update.
The Carex-to-Morning Fresh maker reported year-on-year sales and profit growth in all regions, a further drop in net debt and assured investors it is ‘on track to perform in line with the current range of market expectations’ for the full year.
Africa-focused fuel retailer Vivo Energy (VVO) was unchanged at 102.6p as its first quarter earnings rose 9% after a fall in volumes was offset by better margins.
OTHER RISERS AND FALLERS
Ink-jet printing technology group Xaar (XAR) dropped 5% to 143.2p after it posted a full year loss as sales slipped and it upped spending on research and development.
Music and audio products play Focusrite (TUNE:AIM) skipped 8.4% higher to £12.09 as investors liked the sound of a large rise in first half profit after sales almost doubled due to a surge in demand for home-based audio gear during Covid lockdowns.
And leak detection technology group Water Intelligence (WATR:AIM) gushed11% higher to 899p on news the company more than doubled first quarter profit on the back of a surge in sales.
FOR A LIST OF FTSE 100 GAINERS AND LOSERS SEE HERE
