London midday: Stocks flat as investors mull inflation data, eye Fed
By Michele Maatouk
Date: Wednesday 18 Jun 2025
(Sharecast News) - London stocks were steady by midday on Wednesday as investors mulled the latest UK inflation data and eyed a policy announcement from the Fed, amid ongoing tensions in the Middle East.
The FTSE 100 was flat at 8,835.92, giving up earlier small gains.
Figures released by the Office for National Statistics showed the consumer price inflation eased as expected in May, but food prices rose at the fastest pace in more than year.
The consumer price index ticked up 3.4% in May, down from 3.5% in April and in line with expectations.
The ONS said the largest downward contribution came from transport, while the largest upward contributions came from food, and furniture and household goods.
Food and non-alcoholic beverage prices rose 4.4% in May, up from 3.4% a month earlier. This marked the highest recorded since February 2024, when the rate was 5%.
Core CPI - which excludes food and energy - rose 3.5% in May, down from 3.8% the month before. This was also in line with analysts' expectations.
The data also showed that services CPI increased 4.7%, down from 5.4% in April.
ONS acting chief economist Richard Heys said: "A variety of counteracting price movements meant inflation was little changed in May.
"Air fares fell this month, compared with a large rise at the same time last year, as the timing of Easter and school holidays affected pricing. Meanwhile, motor fuel costs also saw a drop.
"These were partially offset by rising food prices, particularly items such as chocolates and meat products. The cost of furniture and household goods, including fridge freezers and vacuum cleaners, also increased."
Richard Hunter, head of markets at Interactive Investor, said: "The UK inflation rate, while stable, is most unlikely to sway the Bank of England from its expected no-change decision on interest rates tomorrow. Further out, a softening labour market, weakening GDP growth, domestic cost increases and general global uncertainty may force its hand to reduce rates and provide a boon for an ailing UK economy, but for the moment its generally cautious and conservative attitude is likely to prevail."
Commenting on the mood in markets more generally, he said: "Global market direction remains clouded by tariffs, complicated by the Middle Eastern conflict and confounded by the lack of any obvious positive catalysts."
Looking ahead to the rest of the day, all eyes will be on the Federal Reserve's latest policy announcement, due after the close of European markets, with no changes to the policy rate expected.
In equity markets, Rathbones surged after Bank of America initiated coverage of the stock at 'buy', saying it remains "highly undervalued".
PZ Cussons gained after saying it had sold its 50% equity stake in non-core Nigerian joint venture PZ Wilmar and narrowing its guidance for FY25 adjusted operating profit.
Tullow Oil tumbled following a report that potential merger talks between it and Canadian-listed peer Meren Energy have collapsed.
Online electricals retailer AO World fell despite posting above-forecast full-year profits and a jump in sales.
Market Movers
FTSE 100 (UKX) 8,835.92 0.02%
FTSE 250 (MCX) 21,213.38 -0.11%
techMARK (TASX) 5,058.21 -0.23%
FTSE 100 - Risers
Flutter Entertainment (DI) (FLTR) 20,340.00p 2.34%
Entain (ENT) 852.60p 1.79%
Mondi (MNDI) 1,201.00p 1.69%
Babcock International Group (BAB) 1,066.00p 1.43%
Aviva (AV.) 613.20p 1.42%
Melrose Industries (MRO) 480.70p 1.37%
Pearson (PSON) 1,073.50p 1.37%
International Consolidated Airlines Group SA (CDI) (IAG) 316.50p 1.12%
United Utilities Group (UU.) 1,167.50p 0.91%
HSBC Holdings (HSBA) 870.90p 0.87%
FTSE 100 - Fallers
Ashtead Group (AHT) 4,439.00p -2.74%
Croda International (CRDA) 3,040.00p -1.84%
Compass Group (CPG) 2,501.00p -1.77%
GSK (GSK) 1,457.50p -1.52%
AstraZeneca (AZN) 10,508.00p -1.44%
WPP (WPP) 524.40p -1.28%
Convatec Group (CTEC) 282.60p -1.19%
Spirax Group (SPX) 5,820.00p -1.10%
Taylor Wimpey (TW.) 119.10p -1.04%
Berkeley Group Holdings (The) (BKG) 4,166.00p -1.00%
FTSE 250 - Risers
Me Group International (MEGP) 224.50p 6.40%
Rathbones Group (RAT) 1,754.00p 5.54%
Mobico Group (MCG) 26.58p 4.07%
B&M European Value Retail S.A. (DI) (BME) 268.70p 1.63%
Man Group (EMG) 176.30p 1.44%
Great Portland Estates (GPE) 357.50p 1.27%
Edinburgh Worldwide Inv Trust (EWI) 166.60p 1.22%
Trustpilot Group (TRST) 231.40p 1.14%
Bridgepoint Group (Reg S) (BPT) 286.20p 1.13%
JPMorgan Japanese Inv Trust (JFJ) 632.00p 1.12%
FTSE 250 - Fallers
AO World (AO.) 97.60p -3.17%
Howden Joinery Group (HWDN) 847.50p -3.14%
Hochschild Mining (HOC) 242.60p -3.04%
Ferrexpo (FXPO) 47.65p -2.76%
Raspberry PI Holdings (RPI) 445.70p -2.64%
Coats Group (COA) 76.10p -2.44%
Dr. Martens (DOCS) 71.45p -2.26%
Burberry Group (BRBY) 1,053.00p -2.05%
Moonpig Group (MOON) 242.00p -1.83%
Ninety One (N91) 177.80p -1.82%
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