London midday: FTSE extends gains as investors eye US inflation
By Michele Maatouk
Date: Thursday 11 Sep 2025
(Sharecast News) - London stocks had extended gains by midday on Thursday as investors eyed the latest US consumer price inflation reading.
The FTSE 100 was up 0.6% at 9,276.18.
The US consumer price index for August is due at 1330 BST. Investors will also be watching out for the latest policy announcement from the European Central Bank, with no change to rates expected.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said the FTSE 100 was "tracking the positive sentiment felt across global markets after US producer prices rose at a slower pace than expected".
"The S&P 500 notched yet another closing all-time high, buoyed by optimism after softer producer price data reinforced hopes that inflation is cooling - but the rally wasn't at full steam," he said.
"Stocks faded through the session on heavy volume as investors questioned whether valuations have run too far ahead of this afternoon's CPI print, underscoring a market still balancing optimism with caution.
"Headline US consumer inflation (CPI) is expected to tick up to 2.9%, the highest since January. A hotter-than-expected number could reignite rate fears and test the market's lofty valuations, while an inline or softer print may reinforce the 'Goldilocks' narrative that's been powering equities to record highs. Core inflation holding steady at 3.1% will be key for gauging how sticky underlying pressures remain."
On home shores, the latest residential market survey from the Royal Institution of Chartered Surveyors showed that house prices softened in August as economic uncertainty weighed on the market.
The survey showed that agreed sales were also down, alongside a slowdown in new buyer enquiries.
The house price balance fell to -19 from -13 and -7 in July and June respectively, with respondents expecting further falls over the coming quarter.
The new buyer enquiries balance softened for the second month in a row, to -17 from -7, while agreed sales slid to -24 from -17.
There were also fewer fresh listings, with new vendor instructions easing to -3 - the first negative reading since June 2024.
Tarrant Parsons, head of market research and analysis at Rics, said: "With buyer demand easing and agreed sales in decline, the housing market is clearly feeling the effects of ongoing uncertainty.
"Concerns over the wider economic and fiscal outlook, combined with questions around the future path of interest rates amid stubbornly high inflation, are weighing on sentiment at this time."
In equity markets, defence firm BAE Systems was the standout performer on the FTSE 100, while Babcock also gained.
Russ Mould, investment director at AJ Bell, said: "Ongoing geopolitical tensions have led investors to have confidence in the defence sector, believing earnings prospects are strong given a fragile backdrop. BAE Systems' share price has risen by 45% over the past 12 months and up 271% over five years."
Online ticketing platform Trainline surged as it said it expects full-year earnings to be at the upper end of guidance after an 8% jump in interim sales driven by strong traffic in the UK and Europe and also unveiled a £150m share buyback.
The company now expects adjusted core profits to grow at the top end of its previous guidance range of between 6% and 9%. Group net ticket sales increased to £3.2bn, near the top of expectations.
Playtech was also sharply higher as it said it was on track to deliver FY 2025 adjusted earnings before interest, tax, depreciation and amortisation ahead of expectations after a strong first half.
On the downside, M&G, Intertek and Greggs all fell as they traded without entitlement to the dividend.
Market Movers
FTSE 100 (UKX) 9,276.18 0.55%
FTSE 250 (MCX) 21,640.06 0.49%
techMARK (TASX) 5,482.80 0.51%
FTSE 100 - Risers
BAE Systems (BA.) 1,910.00p 4.26%
Compass Group (CPG) 2,615.00p 2.95%
Fresnillo (FRES) 2,214.00p 1.84%
Associated British Foods (ABF) 1,980.50p 1.80%
Airtel Africa (AAF) 228.60p 1.69%
Babcock International Group (BAB) 1,118.00p 1.64%
Diploma (DPLM) 5,520.00p 1.47%
Imperial Brands (IMB) 3,164.00p 1.34%
ICG (ICG) 2,230.00p 1.27%
BP (BP.) 428.85p 1.20%
FTSE 100 - Fallers
M&G (MNG) 249.90p -3.10%
Kingfisher (KGF) 241.10p -1.91%
Experian (EXPN) 3,838.00p -1.46%
SEGRO (SGRO) 613.60p -0.94%
Ashtead Group (AHT) 5,376.00p -0.81%
Auto Trader Group (AUTO) 782.60p -0.71%
Glencore (GLEN) 294.65p -0.64%
DCC (CDI) (DCC) 4,682.00p -0.59%
Rightmove (RMV) 726.00p -0.52%
Anglo American (AAL) 2,518.00p -0.51%
FTSE 250 - Risers
Trainline (TRN) 281.80p 8.38%
Avon Technologies (AVON) 2,060.00p 6.19%
Playtech (PTEC) 415.00p 4.67%
Cranswick (CWK) 5,210.00p 3.78%
Bloomsbury Publishing (BMY) 510.00p 3.03%
Jupiter Fund Management (JUP) 120.00p 2.92%
Tate & Lyle (TATE) 518.50p 2.67%
Ocado Group (OCDO) 314.20p 2.65%
Helios Towers (HTWS) 140.60p 2.63%
Diversified Energy Company (DEC) 1,199.00p 2.48%
FTSE 250 - Fallers
Chrysalis Investments Limited NPV (CHRY) 125.20p -3.99%
Baltic Classifieds Group (BCG) 321.50p -3.31%
SDCL Efficiency Income Trust (SEIT) 55.80p -2.96%
Hays (HAS) 57.50p -2.21%
IP Group (IPO) 58.80p -1.84%
Gamma Communications (GAMA) 1,002.00p -1.76%
W.A.G Payment Solutions (EWG) 108.00p -1.37%
Bytes Technology Group (BYIT) 418.80p -1.27%
NCC Group (NCC) 144.40p -1.23%
Ocean Wilsons Holdings Ltd. (OCN) 1,205.00p -1.23%
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