- UK interest rate hike to be gradual, says Carney
- BoE minutes show unanimous policy decision
- Geopolitical tensions in Ukraine, Middle continue
techMARK 2,823.42 -0.11%
FTSE 100 6,798.15 +0.04%
FTSE 250 15,725.96 +0.48%
UK stocks gained after the Bank of England (BoE) Governor Mark Carney said interest rate increases will be more restrained than in the past as the economy continues to face challenges.
Speaking in Glasgow ahead of the opening of the Commonwealth Games today, he warned that a stronger pound, weak demand in key export markets and government budget-cutting are holding back growth.
He said that there were several dynamics that are "likely to keep rates lower than in the past", including continued imbalances between global saving and investment, potentially lower rates of global productivity growth and the Monetary Policy Committee's (MPC) acute concern about prospects for indebtedness of "vulnerable" households.
His comments came after the BoE released minutes from its July 9-10th meeting which showed all nine of the MPC members agreed to maintain the benchmark rate at a record low of 0.5% and asset purchases at £375bn.
Meanwhile, geopolitical tensions were still under watch in Ukraine and the Middle East after dragging markets lower this week. The first bodies recovered from the Malaysia Airlines flight that was downed in Ukraine last week, killing all 298 people on board, have arrived in the Netherlands today to begin the process of identification. Most of those killed where Dutch nationals.
The death toll in Gaza has exceeded 600 as Israeli continued to storm the region after two weeks of clashes.
GSK slides after Q2 results
tanked as the drugmaker disappointed with a 4% drop in quarterly sales to £5.6bn and lowered its full-year outlook. It now expects to deliver 2014 full-year core earnings per share "broadly similar to last year", down from its previous estimate of 4-8% growth.
Capita gained as the outsourcing group secured £1.3bn of new contracts in the first half from a customer base ranging from John Lewis to the Transport for London.
BHP Billiton, the world's largest mining company by revenues, rose after hailing a strong first-half operating performance with annual records achieved across 12 operations and four commodity classes. Others in the mining sector such as Antofagasta and Kazakhmys were also on the rise this morning.
Engineering group Renishaw surged as the company delivered an all-time high annual revenue of £355.5m in the year to June 30th, up 2% year-on-year after a record fourth quarter. Numis upgraded the stock from 'hold' to 'add' today.
Accountancy software firm Sage edged lower after revealing that organic revenue growth slowed slightly to 4.3% in the third quarter. However, it still expects growth to be much stronger in the final three months of its financial year.
Chemicals group Johnson Matthey declined after saying that first-quarter results were affected, as expected, by currency headwinds and the loss of an important contract with platinum group Anglo American Platinum. Sales were more or less flat over the year.
Utilities group SSE was a heavy faller on the FTSE 100 after going ex-dividend, along with exchange operator LSE.
FTSE 100 - Risers
Capita (CPI) 1,210.00p +4.76%
Rio Tinto (RIO) 3,391.00p +1.62%
Associated British Foods (ABF) 2,874.00p +1.52%
Marks & Spencer Group (MKS) 449.30p +1.51%
GKN (GKN) 351.80p +1.27%
IMI (IMI) 1,444.00p +1.19%
Bunzl (BNZL) 1,624.00p +1.06%
Smith & Nephew (SN.) 1,059.00p +1.05%
St James's Place (STJ) 782.50p +1.03%
Aviva (AV.) 500.50p +0.99%
FTSE 100 - Fallers
GlaxoSmithKline (GSK) 1,481.50p -4.73%
SSE (SSE) 1,498.00p -2.79%
Hargreaves Lansdown (HL.) 1,072.00p -1.83%
Mondi (MNDI) 1,034.00p -1.62%
Weir Group (WEIR) 2,704.00p -1.60%
London Stock Exchange Group (LSE) 1,920.00p -1.34%
SABMiller (SAB) 3,365.50p -1.33%
TUI Travel (TT.) 367.40p -1.24%
Johnson Matthey (JMAT) 3,022.00p -1.21%
Tullow Oil (TLW) 761.00p -1.17%
FTSE 250 - Risers
Renishaw (RSW) 1,801.00p +22.52%
Kazakhmys (KAZ) 344.80p +8.16%
RPS Group (RPS) 274.40p +4.53%
Enterprise Inns (ETI) 127.30p +4.34%
Morgan Advanced Materials (MGAM) 313.10p +4.09%
Vesuvius (VSVS) 466.80p +3.96%
Carphone Warehouse Group (CPW) 332.90p +3.29%
JD Sports Fashion (JD.) 402.60p +3.15%
Dixons Retail (DXNS) 51.30p +3.05%
Intermediate Capital Group (ICP) 422.10p +2.93%
FTSE 250 - Fallers
IG Group Holdings (IGG) 596.50p -3.71%
QinetiQ Group (QQ.) 210.00p -2.55%
Rightmove (RMV) 2,150.00p -2.41%
Croda International (CRDA) 2,130.00p -1.89%
Pets at Home Group (PETS) 183.00p -1.82%
Hellermanntyton Group (HTY) 306.70p -1.54%
Lancashire Holdings Limited (LRE) 605.50p -1.54%
COLT Group SA (COLT) 136.00p -1.38%
Poundland Group (PLND) 320.90p -1.32%
CSR (CSR) 583.00p -1.27%
FTSE TechMARK - Risers
Dialight (DIA) 970.00p +3.69%
Gresham Computing (GHT) 126.38p +2.74%
Promethean World (PRW) 31.50p +2.44%
Vectura Group (VEC) 142.00p +2.16%
NCC Group (NCC) 195.00p +1.83%
Anite (AIE) 90.50p +1.69%
XP Power Ltd. (DI) (XPP) 1,515.00p +1.00%
Oxford Biomedica (OXB) 2.73p +0.93%
Kofax Limited (DI) (KFX) 420.50p +0.72%
Ricardo (RCDO) 636.00p +0.71%
FTSE TechMARK - Fallers
Consort Medical (CSRT) 940.50p -2.79%
KCOM Group (KCOM) 94.25p -2.58%
Phoenix IT Group (PNX) 89.25p -2.19%
Innovation Group (TIG) 32.25p -0.77%
Torotrak (TRK) 18.75p -0.66%
RM (RM.) 166.75p -0.60%
SDL (SDL) 332.75p -0.52%
Sepura (SEPU) 145.75p -0.34%
Skyepharma (SKP) 257.25p -0.29%