London midday: FTSE flat; central bank policy announcements eyed
By Michele Maatouk
Date: Monday 15 Sep 2025
(Sharecast News) - London stocks had pared earlier small gains to trade flat by midday on Monday as investors awaited a string of central bank policy announcements this week.
The FTSE 100 was steady at 9,284.31.
Russ Mould, investment director at AJ Bell, said: "The FTSE 100 was flat at the start of what could be a crunch week for financial markets.
"Later this week the Bank of England and US Federal Reserve are set to announce their latest decision on interest rates. Most of the recent progress made by US stocks has been founded on an expectation that a US rate cut is coming on Wednesday, but UK rates are expected to remain unchanged.
"Expectations for a US rate cut have been heavily influenced by the Fed's messaging. The big unknown is whether this will be a standard cut or a bumper one.
"The other big draw this week is likely to be Trump's state visit to the UK, which has already been heralded by news of tie-ups between companies on both sides of the Atlantic."
Policy announcements are also due this week from the Bank of Canada on Wednesday, Norges Bank on Thursday and the Bank of Japan on Friday.
Investors were mulling the latest data out of China, which showed the economic slowdown deepened in August.
According to figures from the National Bureau of Statistics, growth in industrial output slowed to 5.2% from 5.7% in July, while retail sales growth slowed to 3.4% from 3.7%.
Economists were expecting industrial output growth to be unchanged and retail sales growth of 3.9%
Fixed-asset investment expanded by 0.5% year-on-year in January to August, down from 1.6% growth in the January to July period.
On home shores, the latest house price index from Rightmove showed that prices ticked modestly higher in September on the back of improved affordability.
The national average asking price rose 0.4% on the month to £370,257. It was the first monthly increase since May and a notable improvement on August's 1.3% decline.
Rightmove said the market was being supported by improved buyer affordability, sensible pricing and a high choice of property.
However, year-on-year and prices softened by 0.1%, driven by London and the south. The number of homes for sale in the south of England jumped 9% in September, compared to a more moderate 2% rise elsewhere.
The number of sales agreed was up 4% year-on-year.
Rightmove's Colleen Babcock said: "We expect to see a slight uptick in new seller asking prices in September, with the traditionally back-to-school season boosting activity heading into autumn.
"This year's price rise is a little lower than the average of 0.6% for this time of year...after a summer of competitive pricing by sellers. It's the south which is driving this small dip.
"Static house prices, rising wages and lower mortgage rates all assist buyer affordability, which has led to an increase in the number of sales agreed compared to a year ago."
In equity markets, Sainsbury's rallied as it said talks with China's JD.com over the potential sale of Argos have collapsed.
In a brief statement, the retailer said JD.com was now only prepared to engage on a "materially revised" set of terms and commitments, which were not in the best interest of shareholders.
Centrica gained after it struck a major deal with America's X-energy to build modular nuclear reactors in the UK.
Electrical retailer AO World surged as it lifted the lower end of earnings guidance and announced its first-ever share buyback on the back of strong cash generation.
Full-year adjusted profit before tax is now expected to be £45m to £50m, up from prior guidance of £40m to £50m. Group revenue is expected to be up 13%.
The company said it would buy back £10m in shares after generating £70m in cash with a revolving credit facility of £120m still undrawn.
On the downside, AstraZeneca slumped after announcing a pause in its plans to invest £200m at its Cambridge research site.
Richard Hunter, head of markets at Interactive Investor, said this was "hot on the heels of other pharmaceutical strategic withdrawals given the perceived lack of interest from the government".
He added: "Despite the dip, the shares are up by 21% so far this year, but from a UK perspective such moves add to the possibility that Astra could seek to reflect its US exposure by switching its primary listing, which would be a major reputational blow."
BT Group fell as it said two representatives from major shareholder Bharti Global - Indian telecoms billionaire Sunil Bharti Mittal and Gopal Vittal - have joined the board as non-executives directors.
Market Movers
FTSE 100 (UKX) 9,284.31 0.01%
FTSE 250 (MCX) 21,734.82 0.51%
techMARK (TASX) 5,438.07 -0.36%
FTSE 100 - Risers
Sainsbury (J) (SBRY) 323.00p 5.14%
Beazley (BEZ) 845.50p 3.81%
Smurfit Westrock (DI) (SWR) 3,384.00p 2.89%
Centrica (CNA) 164.95p 2.87%
Marks & Spencer Group (MKS) 347.20p 2.66%
ICG (ICG) 2,296.00p 2.04%
DCC (CDI) (DCC) 4,822.00p 2.03%
Persimmon (PSN) 1,107.00p 1.75%
Rolls-Royce Holdings (RR.) 1,149.00p 1.68%
Phoenix Group Holdings (PHNX) 657.00p 1.62%
FTSE 100 - Fallers
AstraZeneca (AZN) 11,410.00p -3.26%
BT Group (BT.A) 199.40p -3.06%
Airtel Africa (AAF) 225.00p -1.49%
Fresnillo (FRES) 2,124.00p -1.48%
Hikma Pharmaceuticals (HIK) 1,615.00p -1.04%
GSK (GSK) 1,488.00p -1.03%
Haleon (HLN) 358.40p -0.97%
CRH (CDI) (CRH) 8,366.00p -0.90%
Smith & Nephew (SN.) 1,393.50p -0.82%
Diploma (DPLM) 5,495.00p -0.81%
FTSE 250 - Risers
AO World (AO.) 92.80p 11.27%
Vistry Group (VTY) 611.60p 3.80%
Close Brothers Group (CBG) 509.00p 3.54%
RS Group (RS1) 579.50p 2.93%
Auction Technology Group (ATG) 337.00p 2.74%
ITV (ITV) 83.45p 2.64%
Mitchells & Butlers (MAB) 268.00p 2.49%
WH Smith (SMWH) 683.50p 2.47%
Foresight Group Holdings Limited NPV (FSG) 476.50p 2.47%
Lancashire Holdings Limited (LRE) 632.00p 2.43%
FTSE 250 - Fallers
Plus500 Ltd (DI) (PLUS) 3,074.00p -2.97%
Ithaca Energy (ITH) 187.20p -2.40%
Diversified Energy Company (DEC) 1,138.00p -2.32%
Carnival (CCL) 2,115.00p -1.76%
Hochschild Mining (HOC) 324.20p -1.58%
Burberry Group (BRBY) 1,088.00p -1.54%
Playtech (PTEC) 378.00p -1.43%
Bloomsbury Publishing (BMY) 503.00p -1.18%
Baillie Gifford Japan Trust (BGFD) 920.00p -0.97%
Allianz Technology Trust (ATT) 477.00p -0.93%
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