London shares’ prices closed up helped along by strong performances from the likes of Informa and AstraZeneca, as consumer prices in the US grew faster than expected in January.

The FTSE 100 ended the session up 0.38% at 7,672.40, and the FTSE 250 was 0.11% firmer at 22,207.75.

Sterling was also in the green, last trading 0.71% higher on the dollar at $1.3631, and strengthening 0.17% against the euro to €1.1868.

“The latest reading on US inflation delivered a brief check to the rebound in US markets, but it was unable to push indices lower for an extended period,” said IG chief market analyst Chris Beauchamp.

“For the moment, it looks like the market has accustomed itself to these high CPI readings, although the chances of a 50 basis-point hike at the next Fed meeting have increased dramatically.

“As yet it looks like there is not going to be a rerun of January’s selloff – rising prices have been factored in to the outlook, and despite some wobbles investors seem convinced that companies can continue to pass on these price increases to customers.”

Across the pond, the cost of living in the United States picked up more quickly than expected at the start of 2022, amid broad-based gains among the various categories of goods and services.

According to the Department of Labor, the consumer price index advanced at a seasonally-adjusted month-on-month pace of 0.6% in January, against market expectations for a 0.5% rise.

That pushed the annual rate of CPI increase to 7.5% from 7.1% in the month before, with food and energy prices both jumping at a 0.9% pace on the month.

Still stateside, the number of Americans filing for unemployment claims for the first time decreased by a bit more than anticipated last week.

The Labor Department said that in seasonally-adjusted terms, initial jobless claims fell by 16,000 over the week ending on 5 February to reach 223,000.

Economists at Barclays Research had pencilled in a figure of 230,000.

Elsewhere, the European Commission cut its economic growth forecasts for 2022, after the year got off to a weaker-than-expected start.

The EC said it now expected the EU and the eurozone to both grow by 4.0% in 2022, and by 2.8% and 2.7% respectively in 2023.

Last autumn, it predicted the common currency area and the wider bloc would grow by 4.3% in 2022.

“The EU economy entered the new year on a weaker note than previously projected,” the commission said in its winter economic forecast.

“Having regained the pre-pandemic output level in summer last year, a moderate slowdown was already expected in the autumn forecast.

“However, since then headwinds to growth have intensified.”

On home shores, the UK housing market got off to a strong start in 2022, with the latest residential market survey from the Royal Institution of Chartered Surveyors showing a net balance of 74% respondents seeing an increase in house prices in January.

That was an improvement on December’s reading of 69%, with the consensus being for no change.

A net balance of 16% also said they had seen an increase in new buyer demand, compared to December’s balance of 9%, and coming in the strongest since May, when the stamp duty holiday was still in full effect.

However, RICS acknowledged that the January survey was carried out before the Bank of England upped interest rates at the start of February, for the second consecutive time, to 0.5%.

“The increase in new market appraisals is an encouraging signal that more supply may be funnelled onto the market over the coming months, but it remains to be seen whether any uplift in this area is sufficient to match the resilient trend in demand,” said Simon Rubinsohn, RICS chief economist.

“That said, there is an inevitable question market over the impact of rising interest rates allied to the jump in the cost of living on homebuyer sentiment.

“For the time being, the signals on the outlook for both prices and rents remains a little worrisome.”

In equity markets, Informa jumped 7.43% after it announced the sale of its pharmaceutical intelligence business to investment firm Warburg Pincus for £1.9bn, and the start of a share buyback programme.

AstraZeneca gained 3.42% after it announced an increase to its annual dividend and an upbeat outlook, as the drugs company swung to a fourth-quarter loss driven by higher costs.

Prudential managed gains of 0.53% after saying it was looking for a new boss, as chief executive Mike Wells has decided to retire at the end of March after seven years in the job.

Darktrace advanced 3.42% after a multinational electronics corporation signed a million-dollar deal with the cyber security firm.

Miners were among the gainers as metals prices rose, with Antofagasta up 4.22%, Rio Tinto rising 2.38%, and Anglo American up 2.32%.

Travel-related shares were also in the black, with budget airlines Wizz Air and easyJet ascending 6.5% and 3.94%, Cineworld adding 4.41%, and travel caterer SSP 2.36% higher.

On the downside, information provider Relx was off 1.9% even after it lifted its dividend by 6%, announced a £500m share buyback, and said it expected 2022 growth in underlying profit and revenue to be ahead of historical trends.

Redrow closed down 1.28% despite reporting 17% a jump in interim profit and record revenue amid strong demand, and lifting its guidance for 2024.

Beazley reversed earlier gains to close down 2.09% even after it swung to a full-year profit amid good demand in the cyber market.

Syncona also gave up morning advances, tumbling 5.23% despite posting a 16% jump in third-quarter net asset value.

Consumer goods giant Unilever fell 1/29% after it said fourth-quarter underlying sales grew 4.9% and announced a €3bn share buyback, but warned of the continuing impact of cost inflation and the Covid-19 pandemic.

It also said it would make no acquisitions for the foreseeable future after having three bids for GlaxoSmithKline’s consumer health arm rejected.

Market Movers

FTSE 100 (UKX) 7,672.40 0.38%

FTSE 250 (MCX) 22,207.75 0.11%

techMARK (TASX) 4,454.23 0.16%

FTSE 100 – Risers

Informa (INF) 615.80p 7.43%

Antofagasta (ANTO) 1,344.50p 4.22%

Airtel Africa (AAF) 144.20p 3.52%

AstraZeneca (AZN) 8,650.00p 3.42%

Polymetal International (POLY) 1,128.00p 3.34%

Smurfit Kappa Group (CDI) (SKG) 4,149.00p 2.93%

ITV (ITV) 123.25p 2.92%

Pearson (PSON) 641.40p 2.47%

Smith (DS) (SMDS) 386.20p 2.44%

Rolls-Royce Holdings (RR.) 122.72p 2.39%

FTSE 100 – Fallers

Evraz (EVR) 431.70p -2.99%

Dechra Pharmaceuticals (DPH) 3,890.00p -2.16%

Relx plc (REL) 2,267.00p -1.90%

Intermediate Capital Group (ICP) 1,854.00p -1.80%

Royal Mail (RMG) 440.60p -1.78%

JD Sports Fashion (JD.) 178.85p -1.68%

Abrdn (ABDN) 248.70p -1.62%

Auto Trader Group (AUTO) 647.80p -1.37%

Unilever (ULVR) 3,775.00p -1.29%

Admiral Group (ADM) 3,029.00p -1.24%

FTSE 250 – Risers

Wizz Air Holdings (WIZZ) 4,849.00p 6.50%

Chrysalis Investments Limited NPV (CHRY) 189.00p 4.71%

Cineworld Group (CINE) 41.00p 4.41%

easyJet (EZJ) 727.40p 3.94%

Darktrace (DARK) 411.80p 3.42%

Bridgepoint Group (Reg S) (BPT) 375.50p 2.87%

Micro Focus International (MCRO) 466.10p 2.80%

Ferrexpo (FXPO) 287.00p 2.79%

Euromoney Institutional Investor (ERM) 963.00p 2.77%

Contour Global (GLO) 185.80p 2.65%

FTSE 250 – Fallers

Hipgnosis Songs Fund Limited C Shs NPV (SONC) 112.50p -100.00%

Syncona Limited NPV (SYNC) 185.00p -5.23%

Trustpilot Group (TRST) 162.60p -4.86%

Renishaw (RSW) 4,856.00p -3.00%

Brewin Dolphin Holdings (BRW) 323.50p -2.71%

Games Workshop Group (GAW) 8,145.00p -2.58%

Oxford Instruments (OXIG) 2,095.00p -2.57%

Aberforth Smaller Companies Trust (ASL) 1,428.00p -2.46%

Close Brothers Group (CBG) 1,296.00p -2.42%

Petershill Partners (PHLL) 220.00p -2.26%

(SOURCE)