- FTSE 100 closes 11 points lower
- BoE May rate hike expected as UK CPI remains high
- Wall Street lower on hawkish Fed speakers, earnings
4.45pm: FTSE closes flat
The FTSE 100 stayed fairly quiet by the close, finishing around 0.1% lower at 7,899 points.
With London trading action fairly dull, investors eyed news out of Wall Street for some excitement. What they saw were rising yields putting pressure on equities, according to IG's Chris Beauchamp.
“Short-term US yields have been on the up for about a week, but stocks are only really noticing now. After a reasonable start to earnings season we have seen a more cautious mood creep in, which is understandable given the fears about a recession happening within the next year. Losses have been relatively contained however, with stocks caught more in a period of indecision rather than heading into another big sell-off.”
4.00pm: Rates to rise further
The FTSE 100 index entered the final half hour of trading in London modestly lower on Tuesday amid expectations for further UK interest rate hikes following stubborn inflation data.
Major investment banks have revised expectations for further UK interest rate hikes after UK inflation in March fell by less than expected. The data showing CPI at an annual rate of 10.1% in March was well above the 9.8% consensus forecast and followed data on Tuesday showing UK wages rose by more than expected last month.
Analysts at Morgan Stanley now expect a 25 basis point (bps) rate hike from the Bank of England (BoE) in May, and see "clear risks of a June move too". Previously, the US bank had anticipated no change in UK rates next month.
Deutsche Bank analysts also expect two more rate hikes from the BoE, taking the terminal rate to 4.75% in June.
And Bank of America strategists also expect a 25 bps rate hike from the BoE in May compared to a previous call for no change. Bank of America forecasts the terminal rate at 4.5%.
According to the futures market, 100% of investors now price in a quarter-point interest rate rise to 4.25% after the BoE's next meeting on May 11, up from an 80% chance on Tuesday, and expect rates to peak at 5% by September.
3.45pm: Abrdn looking piecemeal
Abrdn PLC is seeking to individually sell a batch of private equity businesses which collectively have about £12bn of investments, after struggling to find a buyer for the entire portfolio, Reuters has reported, citing sources close to the matter.
The FTSE 100-listed fund manager has been working with advisers at Rothschild & Co to sell the package of businesses spanning the UK, the US, and continental Europe, Reuters noted.
In February, the planned divestment was reported to have attracted a small number of suitors, including Santander Asset Management, at a valuation of about £250mln, and Abrdn is now exploring a piecemeal sale following feedback from prospective bidders, a source told Reuters.
Abrdn is looking to sell its private equity operations because it believes it lacks the scale to effectively compete in this space, one of the sources noted, adding there was potential to work with any buyer to retain a stake or take part in a joint venture, Reuters said.
3.30pm: Electric roar
Jaguar Land Rover (JLR) has said it plans to increase its investments in electric vehicles (EVs), promising its first new electric Jaguar in 2025, Reuters has reported.
The luxury carmaker also said it would launch a new all-electric Range Rover SUV in 2025 and order books for that vehicle would open later this year.
JLR, which is owned by India's Tata Motors, said it will invest £15bn over the next five years on EVs, having previously said it would invest £2.5bn a year on electrification, Reuters said.
The company said its Halewood plant in northwest England would become an all-electric manufacturing facility.
3.10pm: Lidl victories help
Tesco has lost a trademark lawsuit brought by supermarket rival Lidl over its use of a yellow circle in branding, Sky News has reported.
The German discount chain brought the case in 2020 shortly after its rival adopted a yellow circle against a blue background to promote its Clubcard Prices discount scheme.
Lidl has traditionally used a yellow circle on a blue background in its main logo.
High Court Judge Joanna Smith said in a written ruling that Tesco had "taken unfair advantage of the distinctive reputation" for low prices held by Lidl's trademarks. Sky News reported.
However, she rejected Lidl's argument that Tesco had "the deliberate subjective intention of riding on Lidl's coat tails".
2.45pm: Wall Street weak
The FTSE 100 index remained lower, below the 7,900 level as the three major US stock indexes started the day in the red as earnings reports continued to roll in following hawkish comments from Federal Reserve officials.
Around 15 minutes after the New York opening bell, the Dow Jones Industrials Average was down 143 points, or 0.5% at 33,832, while the Nasdaq Composite and the S&P 500 also both lost 0.5%.
Expectations that the Fed could keep interest rates higher for longer have pushed stocks lower as treasury yields rise, FOREX.com market analyst Fiona Cincotta said.
“Atlanta Federal President Raphael Bostic and James Bullard made hawkish comments yesterday, with James Bullard saying that interest rates need to rise to 5.5% to 5.75%,” she said. “Recent economic data has been mixed, with the US expected to enter a mild recession later this year or early 2024.”
Cinoctta noted that to date, earnings have broadly supported equities, given that the bar going into reporting season was so low. “Regional banks, which could have been a potential minefield have not been the picture of health, but haven’t fallen off a cliff either,” she pointed out.
2.30pm: Sterling strengthens
While the FTSE 100 index fell following the stubborn March inflation data, sterling found gains, pushing above US$1.24 as investors bet on a further interest rate hike from the Bank of England next month.
Jane Foley, senior FX strategist at Rabo Research commented: "While the market has reacted to today’s strong UK inflation report, it was already reasonably well priced for further rate hikes. At the end of last week implied money market rates were priced for a Bank rate (currently 4.35%) at 4.60% in 3 months and 4.72% in 6 months. This has now shifted up to 4.79% and 5.00% respectively on the back of the CPI inflation release this morning but also on yesterday’s UK labour data which showed a stronger-than-expected increase in nominal earnings.
"That said, cable has already given back its early gains as the US$ pulls higher against its G10 peers. Although higher for longer is a theme for the BoE interest rate outlook, the market is also assessing this outcome for Fed rates and for other central banks including the ECB, Riksbank, RBA and BoC. This suggests limited scope for fresh, sustainable gains for the pound from this morning’s data.
"Indeed, based on our view that further bouts of US$ strength are likely this year, we see risk of dips to GBP/US$1.20. We maintain our forecast that EUR/GBP is likely to grind higher towards EUR/GBP 0.90 on a 9-month view."
2.15pm: Drug strike
Hundreds of workers employed by pharmaceutical giant GSK PLC will stage a series of walkouts throughout May in a dispute over pay, union Unite has announced.
The union said the 750 GSK workers who are members of Unite voted for strike action having rejected the company’s significantly below inflation offer of a 6% pay increase and a one-off lump sum of £1,300. Unite said the offer is a substantial real terms pay cut with the current true inflation rate (RPI) standing at 13.5%.
Unite said strike action will be spread throughout May with workers at all six sites - Barnard Castle, Irvine, Montrose, Ware, Worthing and Ulverston - striking on different dates at different times to maximise the effectiveness of the industrial action.
The workers set to strike undertake a variety of roles at the company and include engineers, process technicians, laboratory analysts, warehouse workers and fire officers, the union said.
Commenting on the action, Unite general secretary Sharon Graham said: “This is an incredibly wealthy company that can fully afford to pay its workers a fair pay offer. This is a classic example of a company seeking to further boost its profits at the expense of its workers.
“Unite has a laser like focus on defending and enhancing the jobs, pay and conditions of its members and the workforce at GSK will be receiving Unite’s complete support.”
1.30pm: A look a some of the top risers and fallers on the junior market
Pendragon Group (LSE:PDG) revved up 6% after the motor retailer reported soaring profits for the three months to March 31, 2023.
Cake Box Holdings PLC (AIM:CBOX) rallied nearly 6% after the fresh cream cakes retailer reported better trading in the latter half of the year to end-March and predicted full-year profits in line with market hopes.
Redde Northgate PLC (LSE:REDD) saw its shares advance 5% to 383p after the company said annual profits are expected to come in ahead of consensus estimates after a strong performance during the year.
Serabi Gold (AIM:SRB, TSX:SBI) fell 14% to 29p after a media investigation accused the company of mining gold in the Amazon rainforest on disputed land, with licences contested by state agencies and before a nearby Indigenous tribe has been consulted.
Liontrust Asset Management (LSE:LIO) shares fell 8% to 860p after it revealed assets under management fell 3.6% in the past three months, driven by an acceleration of net outflows.
1.02pm: US markets seen lower
The Footsie has pushed its lows ahead of the restart in the US. Wall Street is set to open lower as investors weigh up quarterly earnings reports that have been mostly better than expected against further calls by Federal Reserve officials for interest rates to continue rising.
Futures for the Dow Jones Industrial Average (DJIA) fell 0.3% in Wednesday pre-market trading while those for the broader S&P 500 index shed 0.5% and contracts for the Nasdaq-100 declined 0.7%.
The main US benchmarks ended close to their opening levels on Tuesday. The DJIA ended down less than 0.1% at 33,976, while the Nasdaq Composite fell 4 points to 12,153 and the S&P 500 gained just under 0.1% to 4,155.
“Markets traded flat as the reporting season gathered pace with mixed results, and with recessionary concerns remaining close to the surface,” commented Richard Hunter, head of markets at interactive investor, commented.
“The reporting season is still in its infancy but on the whole has exceeded expectations so far, albeit against an extremely low level of expectations," he added.
Hunter noted that the banks have inevitably seen a rise in interest income given the latest round of rate hikes, while the likes of Bank of America and JP Morgan assuaged any immediate concerns on a potentially slowing economy.
“Risk sentiment is now again focused on the Fed's next monetary policy action. Fed officials continue to offer contradictory signals, adding to the already confused picture,” added Naeem Aslam, chief investment officer at Zaye Capital Markets.
St Louis Fed president James Bullard said yesterday that interest rates should continue to rise due to persistent inflation and an economy that is still growing. Separately, Atlanta Federal president Raphael Bostic said the US central bank probably has one more interest rate hike ahead of it as it tackles inflation.
“If we pay heed to James Bullard's remarks, it is evident that the Fed has not completed its mission of increasing interest rates. He expects the terminal rate to be about 5.50% to 5.75%,” Aslam added.
Meanwhile, as earnings season progresses, companies reporting today include Tesla, Morgan Stanley, Airbus and IBM, among others.
11.56am: RyanAir's O'Leary blasts Brexit
The boss of budget airline Ryanair has hit out at the UK government’s handling of Brexit, calling it “unbelievably messy”.
Speaking at Bloomberg’s New Economy Gateway event in Dublin, Michael O’Leary said that the “sunny uplands” that were promised to the UK population have been “shown to be another tissue of lies”.
O’Leary added that Brexit has been much messier than his airline had expected, having “mistakenly assumed” that Boris Johnson’s government would show some competence, put the economy first and do a sensible deal.
He said: "It turned out that was competely delusional, just like Johnson and the rest of his Brexit cohort."
Meanwhile, the FTSE 100 is still nursing losses of around 28 points, standing at 7,879.
11.03am: Private rents rise for 20th month in a row
UK private residential rents rose in the year to March for the 20th successive month as demand strengthened, the Office for National Statistics said on Wednesday.
Private rents increased 4.9% accelerating from 4.8% in the previous month. In London, they climbed 4.8% year-on-year, above the England average of 4.6% and the capital’s highest rate since December 2012.
Rents have risen every month since August 2021, when an increase in house prices prompted many to turn to the rental market. It also marks a fresh record high since the ONS started collecting the data in January 2016.
10.17am: Eurozone inflation falls to 6.9% in March
The euro area annual inflation rate was 6.9% in March 2023, down from 8.5% in February. A year earlier, the rate was 7.4%. European Union annual inflation was 8.3% in March 2023, down from 9.9% in February. A year earlier, the rate was 7.8%. These figures are published by Eurostat, the statistical office of the European Union.
Euro area annual #inflation at 6.9% in March 2023, down from 8.5% in February https://t.co/z4HpgpUiie pic.twitter.com/wiUQUAvqsJ
— EU_Eurostat (@EU_Eurostat) April 19, 2023
9.52am: House price growth slows in year to February
The annual rate of growth in UK house prices slowed to 5.5% in the 12 months to February, down from 6.5% in January 2023, according to the Office for National Statistics.
The ONS said the average UK house price has fallen for the third consecutive month, and is now £288,000, which is £16,000 higher than 12 months ago, but £5,000 below the recent peak in November 2022.
Average house prices increased over the 12 months to £308,000 (6.0%) in England, £215,000 in Wales (6.4%), £180,000 in Scotland (1.0%) while the biggest increase was seen in Northern Ireland (10.2%).
The West Midlands saw the highest annual percentage change of all English regions in the 12 months to February 2023 (8.6%), while London saw the lowest (2.9%).
9.25am: Liontrust falls but Redde Northgate and National Express push ahead
Away from the inflation numbers and there are a few movers and shakers in the world of equities.
The FTSE 100 has fallen further to its worst levels for the day, now down 31%.
In the FTSE 100, Antofagasta lost 1.6% in early exchanges. The Chile-focused miner said its first-quarter copper production was in line with guidance, at 145,900 tonnes, which was 5.1% higher than the previous year.
But, it was 25% lower the previous quarter reflecting the "expected temporary reduction in throughput at Los Pelambres on lower water availability, and expected lower grades and scheduled maintenance at Centinela."
The mining firm expects copper production to improve throughout the rest of 2023.
Gold production was up 9.9% year-on-year at 42,200 ounces, but 25% lower than the fourth quarter. Antofagasta reiterated annual copper production guidance of 670,000 to 710,000 tonnes, and capital expenditure guidance of USD1.9 billion.
Leading the fallers in the FTSE 250 Liontrust Asset Management (LSE:LIO) which fell 6% after the fund manager posted £4.8bn of net annual outflows amid weak investor sentiment.
The UK group said assets under management had dropped to £31.4bn at the end of March, a quarter-on-quarter decrease of 3.6%.
Peel Hunt said the outflow “is significantly worse than flows reported by other UK asset managers so far for the same period.”
“Liontrust is not expensive given its organic growth potential, but continuing outflows and transaction risks cause us to retain our hold recommendation,” analysts at the broker said.
Heading the other way was Redde Northgate which climbed 7.8%.
The commercial vehicle rental provider said trading is ahead of expectations, noting "strong and resilient demand" for its vehicle rental and accident management services.
It now expects annual adjusted pretax profit to be at the top end of the company-compiled consensus range of £149.6mln to £164.4mln.
Peel Hunt expects to increase its April 2023 pre-tax profit forecast from £149.6mln to £165.0mln to give EPS of 54.5p vs 49.5p, a 10% uplift, with a similar performance in 2024 (implying a c.10% increase).
National Express was another firm feature with shares up 7.2% after reporting a 25% increase in first-quarter revenue.
Jefferies noted robust quarterly revenues suggest that the company “is on track to meet full-year consensus expectations.”
The broker described commentary around ALSA trading and new Transit and Shuttle contract wins as “encouraging.”
“We do not expect a material change to FY23E consensus estimates at this early stage,” analysts at Jefferies wrote.
9.00am: Inflation figures a "huge headache" for Bank of England
London’s blue chips remain on the back foot after the inflation figures with the FTSE 100 now down 20 points.
Karen Ward at JP Morgan Asset Management told the BBC the data was a “huge headache” for the Bank of England with the figures giving a sense of “déjà vu,” as just as in February the expected fall in pricing pressures failed to materialise.
She said the markets have given a firm yes to another 25 basis points interest rate rise at the MPC’s next meeting.
Ed Conway at Sky noted the markets are now betting rates could peak as high as 5%, the highest projected rate since the fall out from the mini-budget.
Golly
Less than a month ago investors were betting @bankofengland interest rates would peak at 4.5% - or even 4.25%.
Now they’re betting they’ll hit 5% this year. Highest projected rate since mini-budget fallout.
Another consequence of unexpectedly high and stubborn inflation pic.twitter.com/0dHsMkXBvN
— Ed Conway (@EdConwaySky) April 19, 2023
One beneficiary from the hot inflation number was sterling which jumped 0.3% to US$ 1.2457 on the likelihood of interest rates increasing.
.jpeg)
Victoria Scholar, head of investment at interactive investor, commented: “Core inflation which strips out the more volatile components like energy, food, alcohol, and tobacco rose by 6.2% year-on-year, also ahead of expectations for 6%.”
“Although there have been growing expectations for a dovish pause from the Bank of England in May, today’s hotter-than-expected inflation data with price pressures stuck above 10%, could tip the balance towards another 25-basis point increase at its next decision meeting.”
8.40am: Stubborn inflation means rate rise looks likely
More reaction to the UK inflation figures:
Martin Beck, chief economic advisor to the EY ITEM Club, said: “The fact that this follows the latest labour market data [yesterday], which showed healthy jobs growth and a surprise pickup in private sector wage rises, and a stronger-than-expected performance from the economy, will probably tip the balance towards another rate rise next month.”
ING economist James Smith commented: “After Tuesday’s unexpectedly high wage growth figures, the above-consensus reading on core inflation means another 25bp rate hike from the Bank of England next month is now more likely than not.”
He felt “it’s not quite a slam dunk for a May rate hike – though markets are fully pricing that outcome now.”
“Whether the Bank goes further than that, however, we are less convinced. Markets are pricing three more rate hikes over the next four meetings, which seems extreme,” in his opinion.
But Smith forecast a sharp fall in the CPI next month to around 8% as the effect of last year's electricity/gas price hike filters out of the annual comparison.
Daniele Antonucci, Chief Economist & Macro Strategist, Quintet Private Bank thinks “the Bank of England will likely have no choice other than to continue to raise interest rates for a while longer.”
“Even though economic activity is weak and the income squeeze from high interest rates is a contributing factor, we think that the elevated inflation level, which remained at over 10% in March, increases the odds of yet another rate rise from the Bank of England in May,” Antonucci said.
“With core inflation, which excludes volatile components such as food and energy, unchanged at 6.2%, the Bank is likely to judge that extra tightening is warranted.”
Kevin Bright, Partner at McKinsey noted: “Prices remain stubbornly high – we’ve only fallen back to January’s price inflation rate.”
He pointed that despite of many global commodity prices easing dramatically over the last year, e.g., dairy, vegetable oil and cereals, we’re not seeing this trickle through into the price of products on the shelves.
“While some price rises are slowing, others are accelerating - food and non-alcoholic beverages prices are running at near record levels with prices up 19.1% year on year. And this continues to influence purchasing behaviour, pushing the ongoing migration from ‘fresh to frozen'. For example, fresh fish prices are up 19% year on year, compared to frozen seafood up 12.2% year on year.”
“Some categories are settling into mid-single digit inflation levels. But food and non- alcoholic beverages, housing and household services and restaurants and hotels remain at double digit levels.”
Nick Rees, FX Market Analyst at Monex Europe felt with Bank of England policymakers conditioning a further 25bp hike on an upside surprise in wage growth and core services inflation, the data released over the past 24 hours has meant that another 25bp hike is almost an inevitability in May.
But he thinks an increase in May would be the last of this cycle leaving Bank Rate at a terminal level of 4.5%.
He noted although strong price gains in food and non-alcoholic beverages accounted for a large portion of the monthly increase, the distressing signs for monetary policymakers is that significant price increases were also visible within discretionary goods and services with recreation and culture (+0.14pp), clothing and footwear (+0.10pp) and restaurants and hotels (+0.17pp) all contributing heavily.
Moreover, calculations of monthly core CPI, which aren’t presented directly by the ONS, show it remained at 0.7% month-on-month, making it difficult for the MPC to argue that core price pressures are easing.
8.15am: FTSE 100 slips as inflation remains stubbornly high
The FTSE 100 fell in early exchanges as stubborn inflation data in the UK increased the chances of a further increase in interest rates.
At 8.15am London’s lead index was standing at 7,881.86, down 27.58 points, or 0.35% while the FTSE 250 dipped to 19,177.96, down 118.36 points, or 0.61%.
UK inflation eased in March but not by as much as City commentators had hoped and remains stubbornly in double digits, official figures stated.
The Consumer Prices Index rose by 10.1% in the 12 months to March 2023, down from 10.4% in February, according to the Office for National Statistics.
Economists had expected a fall to 9.8%.
The fall in prices mainly reflected changes in the transport division, particularly for motor fuels.
But food prices continue to rise, up to 19.2% in March from 18.2% in February.
Susannah Streeter, head of money and markets, Hargreaves Lansdown:
‘’The heat has been turned down on the bubbling cauldron of prices, but inflation is still scalding and interest rates look set to be pushed up again to try and cool it down rapidly.”
“Instead of retreating below double digits, CPI is staying stubbornly high, causing more pain for companies and consumers.”
Samuel Tombs at Pantheon Macroeconomics felt the fall is likely too modest for the MPC to hold back from raising Bank Rate one final time next month.
He calculated that core CPI rose by 0.7% month-to-month on a seasonally-adjusted basis, which equates to a rapid annualised increase of 9.1%.
“We now expect the MPC to hike Bank Rate one last time to 4.50%, from 4.25%, at next month’s meeting,” he said.
There was better news on annual producer input price inflation which cooled to 7.6% in March from an upwardly revised figure of 12.8% in February. Market consensus had been expecting a reading of 9.8%.
In company news, Glencore PLC (LSE:GLEN) turned up the heat in its attempts to woo shareholders of Canadian mining firm, Teck Resources.
It said it willing to consider making improvements to its proposal and prepared to make an offer directly to shareholders if there is no engagement from Teck management.
In an open letter to shareholders of Teck, Glencore said its proposal was a "merger and not a takeover" and is "demonstrably superior" to Teck's own separation plan.
It noted its proposal would buy out shareholders of their coal exposure. They would receive either US$8.2bn in cash or 24% of CoalCo.
Elsewhere, National Express jumped 6% as it said revenue jumped 25% in the first quarter despite the impact of bus strikes in the UK.
Ignacio Garat, National Express group chief executive, commented: "I am pleased to report another quarter of progress at National Express with group revenues in-line with expectations, albeit affected by the bus driver strike in the UK, and recognising that the most significant trading periods for our US School Bus and UK and Spanish coach operations still lie ahead.”
7.27am: Solid trading at National Express
National Express PLC reported first quarter revenue growth of 17%, in line with expectations, despite the impact of bus strikes in the UK.
In a trading update, the bus and rail operator said revenue in the period rose by £153.9m to £774.4mln, a rise of 25%.
Ignacio Garat, Group Chief Executive, said: "I am pleased to report another quarter of progress at National Express with Group revenues in-line with expectations, albeit affected by the bus driver strike in the UK, and recognising that the most significant trading periods for our US School Bus and UK and Spanish coach operations still lie ahead.”
The firm highlighted continuing strong performance in ALSA, particularly in Long Haul and Morocco and contract wins in North America in new target cities and segments.
National Express expects average price rises of 13% in US School Bus contracts as contracts expire and reported a strong recovery in UK Coach and German Rail, although UK Bus was affected by a six-day bus driver strike.
The company is implementing a productivity improvement and cost-reduction programme in response to ongoing industry and economic uncertainties but stressed front-line roles would not be cut.
A bond refinancing in November this year is expected to increase incremental annualised interest costs by around £12mln.
7.05am: UK inflation eases by less than expected, food prices keep rising
UK inflation eased in March but not by as much as City commentators had hoped and remains stubbornly in double digits, official figures stated.
The Consumer Prices Index rose by 10.1% in the 12 months to March 2023, down from 10.4% in February, according to the Office for National Statistics.
On a monthly basis, CPI rose by 0.8% in March 2023, compared with a rise of 1.1% in March 2022.
The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 8.9% in the 12 months to March, down from 9.2% in February.
On a monthly basis, CPIH rose by 0.7% in March 2023, compared with a rise of 0.9% in March 2022.
The fall in prices mainly reflected changes in the transport division, particularly for motor fuels.
There were also downward effects from housing and household services, furniture and household goods, clothing and footwear, and restaurants and hotels.
These were partially offset by upward effects coming from food and non-alcoholic beverages, and recreation and culture.
The slowing in the headline rate was partially offset by an upward effect from food and non-alcoholic beverages, where prices rose by 19.2% in the year to March, up from 18.2% in February.
6.56am: FTSE seen little changed ahead of Inflation print
FTSE 100 is seen flat ahead of inflation readings in the UK and the EU.
Spread betting companies are calling London’s lead index down by around 1 point.
UK inflation is expected to fall into single digits for the first time since August with City economists expecting a decline to 9.8% last month after a surprise bounce in February to 10.4%.
A sharp fall in energy costs compared to March 2022, when the Ukraine war drove up prices, is likely to be behind any decrease.
The figures are a key print for the Bank of England as it mulls its latest monetary policy move with a 25 basis point rise in interest rates currently expected at the next meeting of the Monetary Policy Committee.
In the US, stocks closed little changed as lacklustre earnings from Goldman Sachs (NYSE:GS) dented sentiment.
On Wall Street, the Dow Jones Industrial Average closed down 10.55 points at 33,976.63. The S&P 500 gained 3.55 points, or 0.1%, to 4,154.87, while the Nasdaq Composite ended flat at 12,153.41.
After the US close, Netflix posted its first-quarter numbers. Shares dipped in after-hours trading after the streaming platform failed to attract as many new subscribers as expected during the first quarter.
The company added 1.75mln new subscribers during the period, far below the 2.3mln expected.
Back in London and aside from the inflation print the early focus will be trading statements from Just Eat, Antofagasta and Hunting.