FTSE 100 close: Phoenix helps London markets into the green as investors look to key inflation data
London’s FTSE indexes closed higher on Monday in a busy week of data for the UK which investors hope will decisively convince the Bank of England to leave interest rates at their current level.
The bluechip FTSE 100 index closed 0.89 per cent higher at 7,425.86 while the midcap FTSE 250 index rose 0.25 per cent to 17,898.58.
“There is a little more optimism edging in on markets ahead of key inflation data out this week, with sentiment fluctuating about what lies ahead for monetary policy,” Susannah Streeter, head of money and markets, Hargreaves Lansdown said.
“Investors sentiment is volatile when it comes to expectation of bank policy, swinging from pessimism to optimism from session to session,” she continued.
Inflation data is out on Wednesday with markets expecting consumer price inflation will fall below five per cent for the first time in two years. US inflation data is out the day before.
On the FTSE 100, insurer Phoenix climbed 5.7 per cent, hitting the top of the index.
The firm raised its full year cash generation guidance after completing the merger of its two insurance brands.
In a statement, Phoenix said the merger will result in a one-off boost to new cash generation of around £1.8bn, up from previous estimates of between £1.3bn and £1.4bn.
“This funds merger enables us to materially upgrade our cash generation targets and creates further balance sheet optionality for the Group,” Andy Briggs, chief executive said.
On the FTSE 250, British Land shares climbed over 1.8 per cent.
In a half year trading update, the commercial property giant said that underlying profit grew 3.4 per cent to £142m.
The property developer revealed that it had reached close to 100 per cent occupancy across its urban logistics schemes and retail parks.
“Mega-landlord British Land has had a reasonable first half, buoyed by the continued resilience of retail parks,” Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown said.
“Customers are still preferring to shop in these locations, due to the convenience of parking and calibre of stores,” she continued.