(Sharecast News) - London stocks were still lower by midday on Wednesday despite better-than-expected UK inflation data, with sentiment dented after US chipmaker Nvidia warned it will take a $5.5bn hit from Donald Trump's trade war with China.
The FTSE 100 was down 0.4% at 8,219.80.
Russ Mould, investment director at AJ Bell, said: "The FTSE 100 was firmly lower early on Wednesday as investors reacted to the latest developments on tariffs and trade.
"A warning from AI chips champion Nvidia that it will face a $5.5 billion hit from tightened US controls on exports to China marks a new chapter in the escalating tit-for-tat between Washington and Beijing, along with Chinese restrictions on ordering Boeing jets.
"The deteriorating relationship between the two countries means China's better-than-expected GDP figures for the first quarter may not attract too much attention given they cover a period before the Trump administration unleashed its trade policy.
"Dutch semiconductor manufacturing equipment specialist ASML also warned of tariffs clouding the outlook for this year and next as talks between EU and US negotiators failed to yield much in the way of tangible progress overnight."
On home shores, data from the Office for National Statistics showed that consumer price inflation rose 2.6% in the year to March, down from 2.8% in February and coming in below expectations of 2.7% growth.
The largest downward contributions came from recreation and culture, and motor fuels, the ONS said. The largest upward contribution came from clothing.
Core inflation - which excludes energy, food, alcohol and tobacco - rose by 3.4% in the year to March, down from 3.5% the month before.
ONS chief economist Grant Fitzner said: "Inflation eased again in March, driven by a variety of factors including falling fuel prices and unchanged food costs compared with the price rises we saw this time last year.
"The only significant offset came from the price of clothes, which rose strongly this month, following the unusual decrease in February."
Russ Mould said: "Lower-than-expected UK inflation opens the door for the Bank of England to cut interest rates - with the possibility that the country could see a deflationary impact from a flood of cheap Chinese imports looking for a home in the face of US import levies."
In equity markets, Bunzl tumbled as it lowered its guidance for 2025 after a worse-than-expected start to the year, with profits down "significantly" in the first quarter due to a challenging economic backdrop.
The international distribution and services group said it now expects only a "moderate" increase in revenues at constant exchange rates this year, down from an earlier projection for "robust growth", while the operating margin is now expected to reduce to 8.0% compared with the initial targets for no change from 8.3% in 2024.
WH Smith was also in the red as it posted increased first-half profits for the travel segment but a drop in profit at the high street division, which it's in the process of selling to private equity firm Modella Capital.
Barratt Redrow gained as it reported a stable trading performance for the quarter ended 30 March, with a slight year-on-year increase in its core private reservation rate and a total of 3,717 home completions, keeping it on track to deliver full-year guidance of 16,800 to 17,200 homes.
Oxford Instruments jumped after saying it delivered a "strong" full-year performance, in line with expectations.
Outsourcer Mitie rallied as it lifted its full-year profits guidance following "continued good momentum" in the fourth quarter, and announced the launch of a 125m share buyback.
Market Movers
FTSE 100 (UKX) 8,219.80 -0.36%
FTSE 250 (MCX) 19,161.73 -0.55%
techMARK (TASX) 4,409.12 -0.47%
FTSE 100 - Risers
Coca-Cola Europacific Partners (DI) (CCEP) 6,860.00p 2.24%
Fresnillo (FRES) 1,081.00p 2.17%
Barratt Redrow (BTRW) 433.80p 1.43%
Severn Trent (SVT) 2,735.00p 1.33%
Shell (SHEL) 2,400.50p 1.22%
Centrica (CNA) 149.50p 1.18%
Persimmon (PSN) 1,189.50p 1.15%
Coca-Cola HBC AG (CDI) (CCH) 3,712.00p 1.14%
SSE (SSE) 1,623.00p 1.09%
Associated British Foods (ABF) 2,126.00p 1.05%
FTSE 100 - Fallers
Bunzl (BNZL) 2,348.00p -23.72%
Intermediate Capital Group (ICG) 1,755.00p -3.36%
Informa (INF) 692.80p -3.10%
Diploma (DPLM) 3,840.00p -3.03%
JD Sports Fashion (JD.) 72.86p -2.93%
Smurfit Westrock (DI) (SWR) 3,057.00p -2.89%
WPP (WPP) 538.60p -2.78%
InterContinental Hotels Group (IHG) 7,574.00p -2.50%
Flutter Entertainment (DI) (FLTR) 17,055.00p -2.38%
Rolls-Royce Holdings (RR.) 715.40p -2.24%
FTSE 250 - Risers
Endeavour Mining (EDV) 2,190.00p 6.73%
Oxford Instruments (OXIG) 1,726.00p 6.02%
Mitie Group (MTO) 127.80p 4.75%
Hochschild Mining (HOC) 315.40p 3.89%
Discoverie Group (DSCV) 550.00p 1.66%
Derwent London (DLN) 1,917.00p 1.59%
Burberry Group (BRBY) 665.20p 1.53%
NextEnergy Solar Fund Limited Red (NESF) 70.70p 1.29%
British Land Company (BLND) 370.60p 1.15%
Empiric Student Property (ESP) 87.70p 0.92%
FTSE 250 - Fallers
Oxford Nanopore Technologies (ONT) 117.40p -6.00%
WH Smith (SMWH) 902.50p -5.05%
RS Group (RS1) 498.80p -4.17%
XPS Pensions Group (XPS) 378.00p -3.69%
Raspberry PI Holdings (RPI) 427.70p -3.63%
Indivior (INDV) 670.50p -3.53%
Allianz Technology Trust (ATT) 329.00p -3.09%
Genus (GNS) 1,666.00p -3.03%
Rathbones Group (RAT) 1,492.00p -2.74%
THG (THG) 28.70p -2.65%
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