London midday: Stocks edge up amid Ukraine peace hopes
By Michele Maatouk
Date: Tuesday 19 Aug 2025
(Sharecast News) - London stocks had edged higher by midday on Tuesday as investors mulled the prospect of an end to the Ukraine war, after US President Trump said he was arranging a meeting between his Ukrainian and Russian counterparts.
The FTSE 100 was up 0.2% at 9,178.95.
Susanah Streeter, head of money and markets at Hargreaves Lansdown, said: "There's relief that talks between Trump, Zelensky and European leaders appear to have made good progress. With the US President sounding highly positive on giving security guarantees and protection to Europe, it has bolstered hopes for a longer lasting settlement. Ukraine is offering to purchase around $90 billion of American-made military equipment as part of the deal. As the re-armament of Europe continues, to counter the threat of further Russian aggression, it's likely to keep giving a tailwind to defence contractors.
"However, with Trump extracting commitments to buy more US hardware from European leaders, it's giving American contractors the edge."
Streeter added: "The threat of further barriers to trade with Moscow is still hovering over proceedings, with the next step expected to be a meeting between Zelensky and Putin."
On home shores, industry data showed that grocery price inflation edged lower in August but still remains significantly elevated, with consumers adapting their shopping behaviour as the cost of living continues to rise.
According to data from market research firm Worldpanel, the year-on-year change in grocery prices slowed to 5.0% over the four weeks to 10 August, down from 5.2% in July, while take-home sales at supermarkets were 4.0% higher than last year.
Despite the slight easing of inflation, Fraser McKevitt, head of retail and consumer insight at Worldpanel, said: "We're still well past the point at which price rises really start to bite and consumers are continuing to adapt their behaviour to make ends meet."
He said that casual and fast-service restaurants have borne the brunt of the change in consumption patterns, with visitor trips to such establishments down 6% in the three months to mid-July when compared with last year.
However, coffee shops were the one category that has bucked this trend.
Worldpanel reported that as consumers are seeking savings outside the home, they are increasingly swapping meals out for "little treats at home", with sales of branded grocery items up 6.1%, compared with a 4.1% increase in cheaper, own-label alternatives.
In equity markets, JD Sports jumped to the top of the FTSE 100 as Deutsche Bank hiked its price target on the stock to 100p from 85p.
Copper mining giant BHP rallied as a better-than-expected dividend helped to offset the fact that full-year profits have fallen to a five-year low, with sluggish demand from China weighing on iron ore prices.
Fintech group Plus500 rose as announced its first strategic expansion into Latin America after establishing a representative office in Colombia.
Defence firms BAE Systems, Babcock and Rolls-Royce were among the worst performers on the FTSE 100, dented by Ukraine peace hopes. Chemring and Qinetiq also slumped on the FTSE 250.
International Workplace Group tumbled as it said full-year earnings would be at the lower end of its forecast range as the Regus owner invested more cash to grow its managed and franchise segments.
The company, which operates serviced offices, reported a rise in adjusted core earnings to $262m for the six months to June from $247m a year ago. It expects annual earnings of $525m-$565m.
Market Movers
FTSE 100 (UKX) 9,178.95 0.23%
FTSE 250 (MCX) 21,836.30 0.40%
techMARK (TASX) 5,314.73 -0.26%
FTSE 100 - Risers
JD Sports Fashion (JD.) 93.76p 6.79%
Marks & Spencer Group (MKS) 360.10p 3.89%
Persimmon (PSN) 1,130.00p 3.10%
Anglo American (AAL) 2,184.00p 2.49%
Diageo (DGE) 2,083.00p 2.36%
Glencore (GLEN) 295.00p 2.34%
Barratt Redrow (BTRW) 377.90p 2.16%
Kingfisher (KGF) 276.00p 2.15%
WPP (WPP) 386.10p 2.03%
Next (NXT) 12,005.00p 1.91%
FTSE 100 - Fallers
Babcock International Group (BAB) 980.00p -6.40%
BAE Systems (BA.) 1,722.50p -3.80%
Rolls-Royce Holdings (RR.) 1,058.50p -2.17%
Melrose Industries (MRO) 584.20p -1.35%
Hikma Pharmaceuticals (HIK) 1,785.00p -0.94%
BT Group (BT.A) 211.90p -0.94%
Airtel Africa (AAF) 215.20p -0.83%
Games Workshop Group (GAW) 15,650.00p -0.76%
Fresnillo (FRES) 1,685.00p -0.65%
Phoenix Group Holdings (PHNX) 680.50p -0.51%
FTSE 250 - Risers
B&M European Value Retail S.A. (DI) (BME) 236.20p 5.73%
Burberry Group (BRBY) 1,166.50p 4.76%
Watches of Switzerland Group (WOSG) 339.20p 3.35%
Frasers Group (FRAS) 697.50p 2.50%
Pets at Home Group (PETS) 233.20p 2.37%
Hays (HAS) 62.75p 2.37%
Greggs (GRG) 1,610.00p 2.35%
Bytes Technology Group (BYIT) 393.80p 2.34%
Empiric Student Property (ESP) 93.00p 2.31%
Patria Private Equity Trust (PPET) 548.00p 2.24%
FTSE 250 - Fallers
International Workplace Group (IWG) 189.50p -17.39%
Chemring Group (CHG) 521.00p -4.05%
QinetiQ Group (QQ.) 471.80p -3.60%
Auction Technology Group (ATG) 331.00p -2.93%
Bluefield Solar Income Fund Limited (BSIF) 94.00p -2.49%
AJ Bell (AJB) 502.00p -2.14%
Avon Technologies (AVON) 1,942.00p -2.02%
Senior (SNR) 196.00p -1.90%
Close Brothers Group (CBG) 492.20p -1.28%
Oxford Nanopore Technologies (ONT) 207.40p -1.14%
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