The UK benchmark index has been little changed in today’s session, with a rise in miners helping offset the impact of a stronger pound following the latest inflation numbers. Smiths Group (LON:SMIN) meanwhile is outperforming the FTSE 100 on the back of upbeat comments at Barclays.
FTSE 100 little changed
As of 12:23 GMT, the Footsie had added 9.17 points to stand 0.13 percent higher at 7,186.23. Miners are helping keep the FTSE 100 afloat, with Anglo American (LON:AAL) leading the sector higher, having added 1.97 percent to 1,674.80p. A rise in sterling, however, is weighing on the index, after data showed that UK inflation had remained close to its highest level in nearly six years last month.
“The big source of fright out there in the market is higher inflation. It’s centred in the US, but it’s a global phenomenon,” said Jasper Lawler, head of research at London Capital Group, as quoted by Reuters. “This data coming in at a slightly faster tick than we were expecting just supports that narrative that actually global inflation is on the rise and that interest rates are probably going to have to follow suit.”
Smiths Group is currently outperforming the broader market, as Barclays kicked off coverage of the shares with an ‘overweight’ rating. The Financial Times quoted the analysts as saying that the group’s cash flow was improving, pension risks were diminishing, while active portfolio had accelerated under new management. Smiths’ share price is 0.53 percent better off at 1,531.50p.
TUI Group (LON:TUI) meanwhile has gained 2.95 percent to 1,641.50p after reporting that its losses had narrowed in the first quarter of its financial year.
The FTSE 100 was 0.13 percent up at 7,186.07 points as of 12:41 GMT on Tuesday, 13 February 2018.