London midday: Stocks touch higher as investors eye Nvidia, UK inflation

London stocks were just a touch firmer by midday on Monday as investors mulled the latest house price research from Rightmove and looked ahead to earnings from Nvidia and the latest UK inflation reading this week.
The FTSE 100 was up 0.1% at 8,072.40.

Richard Hunter, head of markets at Interactive Investor, said markets in the UK "made a positive if slightly unconvincing start in early trade" given the global backdrop.

He noted: "The FTSE 100 is now up by 4.5% so far this year and the FTSE 250 4.2%, with gains from earlier in the year having been eclipsed by the rush for growth stocks in other jurisdictions, most notably with investors looking to ride the coattails of the technology surge in the US and more latterly chasing the Trump trade.

"The UK's reputation as a more stable, and even defensive investment destination tends to weigh against prospects in this kind of environment, despite the increasingly accepted acknowledgement that valuations are historically cheap against most other developed markets."

Looking ahead to the rest of the week, attention will turn to Nvidia's third-quarter results on Wednesday.

Kathleen Brooks, research director at XTB, said: "The market is expecting revenues of $33.20bn, and net income of $18.55bn. This is a significant uplift from the $30.04bn recorded in the prior quarter, and $16.95bn for net income. Nvidia is expected to get more profitable, earnings per share is expected to rise to $0.74 up from $0.68 in the previous quarter.

"Analysts have generally upgraded their forecasts for Nvidia's results in the last 4-weeks, as demand for Nvidia's Hopper graphics processing unit and architecture system, is expected to see demand soar, even though there have been delays with Nvidia's newest Blackwell chip. Demand for Nvidia's Hopper product is likely to protect revenues for last quarter, however, the company will need to give an upbeat outlook on Blackwell chips for this stock to recover after dropping nearly 5% last week."

Investors were also looking ahead to the latest UK inflation data on Wednesday.

Brooks said inflation is still expected to come in below the Bank of England forecast, however, the risks are to the upside.

"Energy bills are expected to have risen by 9.5% last month compared to a year earlier. While energy prices are rising, service sector inflation, or domestic inflation, is expected to slow from here.

"Overall, we do not think that this week's data will shift the dial for the BOE. Although energy prices are expected to rise sharply, this is still due to the energy shock from the past, when Russia first invaded Ukraine. Crucially for the BOE, no new sources of inflation are expected to develop. In our view, a rate cut is unlikely before the next BOE Monetary Policy Report is released in February."

Figures released earlier by Rightmove showed that house prices eased in November as uncertainty around the Budget weighed on demand.

According to the latest house price index, average new selling asking prices fell by 1.4% month-on-month in November, to £366,592. That was steeper that the 0.8% drop usually seen at this time year of year. Year-on-year, prices rose 1.2%.

However, Rightmove said that despite the government's Budget at the end of October having a "dampening" effect, overall market activity was stronger than last year.

The number of agreed sales was up 26%, while the number of new sellers coming to market was 6% higher.

There were also early signs of a further uptick in demand following the Bank of England's decision to trim interest rates at the start of November, the second reduction so far this year.

In equity markets, shares in Melrose surged as the aerospace company reported a rise in revenues driven by aftermarket demand in its engines division, particularly in defence.

Revenue rose 7% in the four months to October 31, with aftermarket up 32% year on year although original equipment volume growth remained constrained by industry-wide supply chain issues, Melrose said.

The company, which last year hived off its auto and other businesses to focus on aerospace, held annual guidance and still expects adjusted operating profit of £550m to £570m, adding that it was on track to hit a £700m profit target in 2025.

Russ Mould, investment director at AJ Bell, said: "There will be genuine relief at a lack of further downgrades at aerospace business Melrose after its warning this summer.

"Supply chain issues remain in the background amid problems at the world's two major plane makers Airbus and Boeing, yet Melrose has felt able to stick with its current guidance.

"Historically Melrose bought up industrial businesses and executed a buy, improve, sell model - investors will hope the 'improve' bit has been retained now its entire focus is being brought to bear on the old GKN aerospace business. Next year will be a key test with the company promising a significant increase in cash flow as the bulk of the restructuring of the business concludes.

"For now, it is the company's engine division that is really powering things, with the bit of the business which builds the body and wings of planes trailing in its slipstream."

Hochschild and Centamin both shone as gold prices advanced.

Safety equipment maker Halma ticked up as it announced the acquisition of Lamidey Noury Medical, a Paris-based manufacturer of medical technology devices, for €50m.

Market Movers

FTSE 100 (UKX) 8,072.40 0.11%
FTSE 250 (MCX) 20,407.16 -0.34%
techMARK (TASX) 4,594.97 0.02%

FTSE 100 - Risers

Melrose Industries (MRO) 518.20p 5.86%
Entain (ENT) 752.20p 1.54%
Vodafone Group (VOD) 70.60p 1.52%
Auto Trader Group (AUTO) 805.00p 1.26%
DCC (CDI) (DCC) 5,465.00p 1.20%
United Utilities Group (UU.) 1,098.00p 1.20%
Imperial Brands (IMB) 2,398.00p 1.14%
Intermediate Capital Group (ICG) 2,018.00p 1.00%
Smith (DS) (SMDS) 569.50p 0.98%
Flutter Entertainment (DI) (FLTR) 20,960.00p 0.96%

FTSE 100 - Fallers

B&M European Value Retail S.A. (DI) (BME) 356.10p -5.89%
Vistry Group (VTY) 676.50p -3.22%
Convatec Group (CTEC) 241.00p -3.14%
Kingfisher (KGF) 287.00p -1.98%
JD Sports Fashion (JD.) 116.50p -1.60%
Land Securities Group (LAND) 597.50p -1.24%
Taylor Wimpey (TW.) 130.00p -1.22%
British Land Company (BLND) 376.00p -1.10%
Unite Group (UTG) 849.00p -0.93%
Spirax Group (SPX) 6,530.00p -0.91%

FTSE 250 - Risers

Wood Group (John) (WG.) 52.95p 5.90%
Hochschild Mining (HOC) 217.50p 3.82%
Centamin (DI) (CEY) 145.30p 3.27%
TP Icap Group (TCAP) 262.50p 2.14%
Burberry Group (BRBY) 925.40p 2.12%
Babcock International Group (BAB) 520.00p 2.06%
Endeavour Mining (EDV) 1,551.00p 1.44%
Discoverie Group (DSCV) 669.00p 1.36%
Lancashire Holdings Limited (LRE) 613.00p 1.32%
TBC Bank Group (TBCG) 3,230.00p 1.25%

FTSE 250 - Fallers

PureTech Health (PRTC) 163.00p -5.01%
Syncona Limited NPV (SYNC) 103.20p -3.37%
Wizz Air Holdings (WIZZ) 1,404.00p -2.50%
Senior (SNR) 146.20p -2.40%
Renewi (RWI) 601.00p -2.28%
SSP Group (SSPG) 153.60p -2.17%
Ibstock (IBST) 185.00p -2.12%
IP Group (IPO) 44.50p -2.09%
Marshalls (MSLH) 328.00p -2.09%
Bridgepoint Group (Reg S) (BPT) 329.20p -2.08%