4th Mar 2026 12:05
(Alliance News) - Stock prices in London were mostly in the green midday on Wednesday, following a report of relative stability in the UK private and service sectors, and a warning from the Office for Budgetary Responsibility.
The OBR slashed its growth forecast for 2026 but has signalled modest improvements in 2027 and 2028. But David Miles, a member of the OBR's budget responsibility committee, said there was uncertainty because the tax burden was moving into "uncharted territory".
As for purchasing managers' indices, the S&P Global UK services PMI activity index posted 53.9 for February, in line with the flash estimate released on February 20, and down slightly from January's five-month record of 54.0 points. The PMI composite output index registered 53.7 in February, slightly lower than the 53.9 flash estimate but unchanged from January's reading.
The FTSE 100 index was up 64.07 points, 0.6%, at 10,548.20. The FTSE 250 was up 161.19 points, 0.7%, at 22,855.40, and the AIM all-share was up 7.35 points, 0.9%, at 793.78.
The Cboe UK 100 was up 1.0% at 1,050.57, the Cboe UK 250 was up 0.7% at 20,156.24, and the Cboe small companies was down 0.1% at 18,114.44.
FTSE 100 listing Barratt Redrow was down 0.7%, while on the FTSE 250 Vistry remained the worst performer with a 19% drop.
"Two big names in the UK housebuilding sector are set to exit stage left as Vistry's [Chair & Chief Executive] Greg Fitzgerald and Barratt Redrow's [CEO] David Thomas announce their respective retirements," AJ Bell's Dan Coatsworth commented. "Fitzgerald has been instrumental in Vistry's strategy over recent years, which initially proved successful until an accounting scandal emerged to shake the company's foundations in 2024."
He added: "The shocking drop in Vistry's share price can't purely be attributed to Fitzgerald's departure. He looks set to leave under something of a cloud as, alongside in line full-year results, Vistry warns of margin pressure in 2026 and an end to share buybacks once the current programme is completed as the company looks to get its debts under control.
"To date and under Fitzgerald's tenure the shares have delivered a negative total return."
Lenders had a more positive morning with Barclays up 1.0%, Lloyds up 1.2%, and Close Brothers up 1.5%.
This follows the Financial Conduct Authority's announcement that millions of people in the UK mis-sold car loans could receive compensation this year under plans to set out final rules for a redress scheme later this month.
If it gets the green light, the FCA said it expects to give lenders a three-month implementation period to pay out redress, with up to five months for older motor finance agreements due to the "scale and complexity of the scheme and in response to feedback".
"The Financial Conduct Authority is keen to streamline the proposed compensation scheme and speed up the process so affected individuals can learn what they're owed and get that money," Coatsworth said. "Lenders...have already set aside large sums of money to cover any compensation payments, and they will want to put the episode behind them as soon as possible."
Among small-caps, Gulf Marine Services dropped 9.2%.
The provider of support vessels to the offshore energy industry announced the evacuation of personnel from four vessels on instructions from a client in the Middle East, which it said was a precautionary measure due to "the ongoing situation in the Gulf region".
The company added that it was working to quantify the potential impact of recent events in the region on its financial and operational performance.
In European equities on Wednesday, the CAC 40 in Paris was up 1.0%, while the DAX 40 in Frankfurt was up 1.7%.
Growth in the eurozone accelerated in February, final survey data from S&P Global showed. The Hamburg Commercial Bank composite PMI rose to a three-month high of 51.9 points in February from 51.3 in January, matching the flash estimate.
The services PMI business activity index rose to 51.9 points in February from 51.6 in January, slightly ahead of the flash estimate of 51.8.
Meanwhile, Eurostat reported that the single currency bloc's unemployment rate was 6.1% in January, unexpectedly declining from 6.2% in December and 6.3% 12 months earlier.
Separate data showed producer prices declined 2.1% on-year in January, after a 2.0% fall in December. January's decline was tamer than forecast, as a 2.7% fall was predicted.
The pound was quoted higher at USD1.3382 at midday on Wednesday in London, compared to USD1.3305 at the equities close on Tuesday. The euro stood higher at USD1.1637, against USD1.1585. Against the yen, the dollar was trading lower at JPY157.17 compared to JPY157.80.
Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.2%, the S&P 500 index up 0.3%, and the Nasdaq Composite up 0.4%.
The yield on the US 10-year Treasury was quoted at 4.09%, widening from 4.07%. The yield on the US 30-year Treasury was quoted at 4.73%, widening from 4.70%.
Brent oil was quoted lower at USD82.45 a barrel at midday in London on Wednesday from USD83.06 late Tuesday.
"Oil prices were higher today, extending a sharp multi-day rally," Christopher Tahir of Exness said. "Escalating geopolitical tensions in the Middle East continue to drive price action. The threats and attacks on tankers caused significant disruptions to shipping traffic in the Strait of Hormuz, including halted deliveries, skyrocketing costs, and rerouting, translating into tangible supply concerns.
"While the US announced that it would provide insurance and naval escorts for tankers transiting the Strait of Hormuz, the implementation could take time, leaving the market on the same trend to a certain extent."
Gold was quoted higher at USD5,192.80 an ounce against USD5,114.94.
Miners were among the FTSE 100's winners. Antofagasta led, up 4.0%, while Anglo American rose 2.4%, Fresnillo rose 2.2% and Glencore gained 1.7%.
Still to come on Wednesday's economic calendar are a US jobs report from ADP, followed by PMIs from Canada and the US.
By Emma Curzon, Alliance News reporter
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