London midday: FTSE touch higher as investors mull China stimulus
By Michele Maatouk
Date: Monday 17 Mar 2025
(Sharecast News) - London stocks were still just a touch higher by midday on Monday ahead of a week packed with central bank policy announcements, as investors mulled fresh stimulus plans from China and the latest developments in Donald Trump's trade war.
The FTSE 100 was up 0.1% at 8,642.18.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "Markets are in choppy waters at the start of a week dominated by central bank decisions, as investors navigate risky trade currents and geopolitical uncertainty. Hopes that a new consumer life raft in China will buoy up the country's prospects of recovery have helped lift sentiment slightly, but caution remains. The multi-pronged approach to boost consumption across China's vast economy has been long-awaited.
"Authorities plan to stimulate domestic demand by raising the minimum wage, helping with re-skilling and providing unemployment insurance. It's also trying to shift habits away from a squirrel-like savings culture by offering more support to pensioners and students, to try and encourage more spending. Plans to stabilise the flailing property sector, and measures to support stock market participation are also part of the picture.
"The details of the special action plan come as latest economic snapshots show improvements in the January and February period, with retail sales rising 4%, and growth in industrial output coming in at 5.9% year on year beating forecasts."
On home shores, a survey from Rightmove showed the average price of a home coming to market rose in March in line with the long-term average increase for that month, as many new sellers priced sensibly amid decade-high competition to sell.
House prices ticked up 1.1% on the month following a 0.5% jump in February. On the year, price growth slowed to 1% in March from 1.4% the month before.
The average price of a property stood at £371,870, up from £367,994 in February.
Market participants were also mulling the latest comments from US President Trump, who said he would go ahead with reciprocal and additional sector-specific tariffs on 2 April with no exemptions for the steel and aluminium sectors.
Looking ahead to the rest of the week, eyes will be on rate announcements from the Bank of England, the Federal Reserve and the Bank of Japan, among others.
Streeter said "a wait and see mood is percolating, amid the drip-drip of uncertainty surrounding prospects for the global economy".
"The Bank of Japan, the Fed and the Bank of England are all set to keep interest rates on hold. Growth is also being put high on the agenda of the UK government, especially given the disappointing reading on Friday showing a contraction in output in January. But the desire to be prudent with the public finances and not break fiscal rules means the government is in a tight spot," she said.
In equity markets, Phoenix Group surged as it upgraded its cash generation and adjusted operating profit targets through 2026 following a strong performance in 2024.
Defence contractor QinetiQ tumbled after saying it would take a £140m impairment charge as tough market conditions persisted into the fourth quarter, hitting work in its UK intelligence and US sectors and resulting in further delays to a number of contract awards.
It added that it had also identified a number of one-off, largely non-cash charges and provisions primarily relating to inventory and cost recovery in legacy US operations.
Around £25-30m is included in updated underlying profit guidance for the year end and around £35-40m would be reported through exceptional items.
Energean also fell sharply after saying it remains committed to the sale of its portfolio in Egypt, Italy and Croatia to an outfit controlled by Carlyle International Energy Partners.
Tesco and Marks & Spencer were under the cosh again following heavy losses on Friday after Asda said it would undertake a "substantive" programme of investment that would "materially" dent profits.
Marshalls lost ground as the landscaping, building and roofing products group trimmed its dividend after a dip in profits in 2024, but pointed to a recovery in end-markets later this year.
AstraZeneca fell as it announced the up to $1bn acquisition of Belgian biotech firm EsoBiotec, which it said has the potential to "transform" cell therapy.
Market Movers
FTSE 100 (UKX) 8,642.18 0.11%
FTSE 250 (MCX) 19,944.37 -0.26%
techMARK (TASX) 4,736.81 -1.04%
FTSE 100 - Risers
Phoenix Group Holdings (PHNX) 564.50p 7.73%
JD Sports Fashion (JD.) 73.84p 1.71%
Antofagasta (ANTO) 1,880.00p 1.54%
International Consolidated Airlines Group SA (CDI) (IAG) 287.40p 1.48%
Beazley (BEZ) 898.50p 1.24%
Shell (SHEL) 2,665.50p 1.22%
Rio Tinto (RIO) 4,876.50p 1.21%
Mondi (MNDI) 1,267.00p 1.12%
Coca-Cola HBC AG (CDI) (CCH) 3,442.00p 1.06%
Aviva (AV.) 553.20p 1.02%
FTSE 100 - Fallers
Tesco (TSCO) 331.30p -2.33%
Marks & Spencer Group (MKS) 326.80p -2.27%
Melrose Industries (MRO) 518.00p -1.89%
Intermediate Capital Group (ICG) 2,034.00p -1.64%
Games Workshop Group (GAW) 14,660.00p -1.61%
AstraZeneca (AZN) 11,808.00p -1.55%
Halma (HLMA) 2,674.00p -1.36%
Schroders (SDR) 382.00p -1.14%
Compass Group (CPG) 2,630.00p -1.13%
Sainsbury (J) (SBRY) 232.40p -1.11%
FTSE 250 - Risers
Wood Group (John) (WG.) 41.60p 4.26%
Hochschild Mining (HOC) 243.50p 4.06%
Helios Towers (HTWS) 105.60p 3.33%
Diversified Energy Company (DEC) 943.00p 2.84%
Trainline (TRN) 272.20p 2.56%
NCC Group (NCC) 133.80p 1.98%
Pets at Home Group (PETS) 238.80p 1.96%
Vistry Group (VTY) 612.00p 1.66%
Foresight Group Holdings Limited NPV (FSG) 373.00p 1.63%
Travis Perkins (TPK) 569.00p 1.61%
FTSE 250 - Fallers
QinetiQ Group (QQ.) 412.00p -21.45%
Energean (ENOG) 866.00p -7.92%
Ferrexpo (FXPO) 78.30p -6.23%
Marshalls (MSLH) 233.00p -4.31%
Bridgepoint Group (Reg S) (BPT) 318.40p -2.51%
Chemring Group (CHG) 401.50p -2.43%
Quilter (QLT) 153.40p -2.17%
Trustpilot Group (TRST) 274.50p -2.14%
Savills (SVS) 919.00p -1.92%
Pacific Horizon Inv Trust (PHI) 574.00p -1.88%
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