FTSE 100 flat as rate hike fears offset mining gains; Bellway jumps (updated)

Mid Penn Bancorp

19/10/2021 09:39

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markets, click LIVE/ or type LIVE/ in a news window)
    * Bellway jumps on strong surge in annual profit
    * Gaming co 888 Holdings drops on weak trading update
    * IAG top FTSE 100 loser on Berenberg downgrades 
    * FTSE 100 flat, FTSE 250 adds 0.4%

 (Updates prices, adds comment)
    By Shashank Nayar and Bansari Mayur Kamdar
    Oct 19 (Reuters) - London's FTSE 100 was subdued on Tuesday
as gains in retail and mining stocks were offset by rate-hike
risks, while homebuilder Bellway was the top boost to the
mid-cap index after reporting a surge in annual profit.
    The blue-chip FTSE 100 index  .FTSE  was flat at 0837 GMT.
Miners Rio Tinto  RIO.L , Glencore  GLEN.L , Anglo American
 AAL.L  and Polymetal International  POLYP.L  were among the top
performers.
    British Airways owner IAG  ICAG.L  was the top loser, down
2.2% after brokerage Berenberg downgraded stock to "hold" from
"buy", cut its price target on the stock to 200 pence from 230. 
    However, expectations the Bank of England could hike rates
towards the end of this year on rising inflation and supply
chain pressures pushed the pound  GBP=  to its one-month high of
1.3783, limiting gains on the export-oriented FTSE 100 index.
    "The more that we see inflation data and put the pressure
back on the central banks, the more pressure that is going to
materialize on the markets as well," said Craig Erlam, senior
market analyst at Oanda. 
    The FTSE 100 has gained 11.5% so far this year on
accomodative central bank policies and positive corporate
results, although bets of a rate hike have recently weighed on
the index as higher rates could dampen the pace of UK's economic
recovery.
    Investors now await key UK inflation data due to be released
on Wednesday for cues on further price pressures. 
    The domestically focussed mid-cap index  .FTMC  advanced
0.4%, with consumer discretionary stocks being among the top
performers.    
    Bellway Plc  BWY.L  rose 2.1% after a significant increase
in annual profits and an increase in its target of new homes for
the year ending July 2022.  urn:newsml:reuters.com:*:nL4N2RF1EG
    Shares of British price comparison website
Moneysupermarket.com  MONY.L  jumped 6.4% to be the top gainer
in the mid-cap index after it agreed to buy cashback business
Quidco for an initial consideration of 87 million
pounds. urn:newsml:reuters.com:*:nL4N2RF1TB 
    Online gaming company 888 Holdings  888.L  dropped 1.8%
after announcing that it expects a negative impact to 2022
EBITDA in its latest trading update.  urn:newsml:reuters.com:*:nASN001RVO


    

 (Reporting by Shashank Nayar and Bansari Mayur Kamdar; editing
by Uttaresh.V and Krishna Chandra Eluri)
 ((Shashank.Nayar@thomsonreuters.com; within U.S. +1 646 223
8780; outside U.S. +91 80 6182 2256;))
 
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