FTSE 100 latest: Footsie defies inflation drag
The FTSE 100 struggled for direction following the news that inflation in the UK had fallen by less than predicted, down from 1.8% to 1.6%.
Winning streak: Can the FTSE 100 stay above 5,000.
The news threatened to derail a third successive day of gains in London after gains in Asia overnight, where shares hit multi-month highs, and on Wall Street. But the blue-chip index regained ground by early afternoon and closed 23.3 points up at 5,042.1.
ITV was the heaviest faller this morning after regulators rejected changes to its ads policy. The UK's largest free-to-air commercial broadcaster has been seeking to relax the rules that mean the prices it charges for advertising slots are capped.
However, the Competition Commission today announced that the regime will not be relaxed by as much as ITV had been hoping for.
The market showed its displeasure and ITV shares fell by 2.97p, or 5.65%, to 49.63p.
Energy stocks continued to suffer the pain of lower commodity and oil prices. BP and Royal Dutch Shell both fell in early trading but regained ground, closed 0.5p up at 543.5p and 10p up at 1,749.5p respectively.
BG Group bucked the trend, remaining positive all day and closed 16p up at 1,125p after unveiling another new discovery in the Santos Basin concession, offshore Brazil.
Technology firm Smiths Group shed 15p to 879.5p after Morgan Stanley cut the stock's rating to 'equal-weight' from 'overweight', but raised its price target to 850p from 825p citing valuation grounds.
Drugmakers were under pressure, with AstraZeneca and GlaxoSmithKline shedding 5.5p to 2,734.5p, and 14p to 1,175.5p, respectively.
The biggest rise came from catalytic convertors firm Johnson Matthey, which rose 45p to 1,471p after falling heavily yesterday. BT Group also made a rare appearance on the risers board, up 5.7p to 135.5p.
In corporate results, Dunelm shares soared 11% or 31p to 310p after it said like-for-like sales jumped 16% in the 10 weeks to September 12. Pre-tax profits were also up 7% in the year to July 4.
Tomorrow's agenda
Brits may bemoan the lack of summer sun, but clothing chain Next celebrated the brief heatwave in June, saying it had given a boost to sales. Recent more fashionable designs are also believed to be helping. For the first six months of the year, analysts are pencilling in a 5% rise in profits to £180m.
But the company also warned that sales in the second half of its financial year would not be as strong. Investors will be keen to hear any update on those figures from chief executive Simon Wolfson.
BNP Paribas has warned that Next is 'trapped in a spiral of negative like-for-like sales', and reckons Wolfson will remain downbeat.
Price cuts and consumers slashing spending are tipped to leave Zara owner Inditex nursing a 12% drop in first quarter profits. The Spanish chain has suffered particularly in its homeland because of rising unemployment.
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