London midday: Stocks edge higher on improved outlook from BoE

15th May 2013 11:19

An improved outlook from the Bank of England (BoE) lifted UK markets into the blue by Wednesday lunchtime as investors shrugged off disappointing growth figures from the Eurozone and rising unemployment at home.The FTSE 100 was extending its recent winning streak to its 10th day after finishing Tuesday's session at 6,686, a level not seen since late 2007. The benchmark index's all-time closing high of 6,930 was recorded in December 1999, a mark which could be surpassed before the end of 2013, according to some analysts.The BoE's Quarterly Inflation Report was on investors' minds this morning as Sir Mervyn King presided over his final report before handing over the reins to Mark Carney this summer. He said that projections are now for stronger growth and weaker inflation than the Bank expected three months ago. "That's the first time I've been able to say that since before the financial crisis," King told the press.However, Marcus Bullus, the Trading Director at MB Capital, viewed his comments with a cautious stance. He said: "With one eye on his legacy and one on the economy, the temptation to look for positives must have been overwhelming.  "He assured us once again that the 'recovery is in sight'. It is, if you are peering through the Hubble space telescope. The Governor's prediction that the Bank Rate will remain below 1.0% for at least four years hardly hints at confidence."Eurozone GDP misses forecasts; UK unemployment on the riseMarkets opened cautiously early on after Eurozone gross domestic product (GDP) shrunk by 0.2% in the first quarter. This was better than the 0.6% contraction in the fourth quarter of 2012 but missed the forecast for a fall of just 0.1%.Economic powerhouses Germany and France both missed forecasts this morning with the latter slipping into recession. Meanwhile, Italy was stuck with negative growth and remains in its longest recession in the last 43 years.Despite the disappointment, stock markets across Europe gave a pretty muted reaction, as Market Analyst Ishaq Siddiqi from ETX Capital explains: "The outcome of Eurozone GDP hasn't triggered a reversal of the bullish tone as many believe that this will only push the European Central Bank to consider options to provide further stimulus measures and also in part that the Q1 period was affected by cold weather conditions which stalled growth for the core regions." In other news, UK unemployment rose to 2.52m in the first three months of the year, according to the Office for National Statistics. The number of people without jobs grew by 15,000 compared to the previous quarter with the unemployment rate 0.1 percentage points higher at 7.8%.FTSE 100: easyJet flying high; ex-div stocks provide a dragBudget airline easyJet was sharply higher this morning after narrowing its half-year losses as it took initiatives to boost revenues and cut costs. Investec labelled the stock as a "key pick in the airlines sector" saying that its own above-consensus forecasts for this year look "eminently achievable".A number of heavyweight stock went ex-dividend this morning, meaning that investors will not have a chance to tap in to their latest dividend payments. Sage, G4S, Morrison, Polymetal, Sainsbury and Whitbread were all weighing heavily on the FTSE 100 this morning.Oil major Shell was also trading lower after going ex-dividend though the stock was likely under additional pressure on reports that authorities raided its offices - along with sector peer BP - in relation to a probe into alleged manipulation of oil prices over the last decade.Utilities group Severn Trent was pulling back after yesterday's 14% jump on the back of an approach by a consortium of foreign investors. The group said today that a proposal tabled by the potential bidders came at only a "modest premium" to Monday's share price and was rejected by the board.Broadcaster ITV was a heavy faller this morning despite a seemingly solid first-quarter statement in which it outperformed the TV ad market in the first quarter. Markets however appear to be focusing on the company's cautious outlook for the rest of the year.Real estate group Land Securities rose after saying that its annual net asset value per share rose 4.1% as it signed new development lettings.Contract caterer Compass was also higher after lifting its half-year revenue by 4.1% after a strong North American and emerging markets performance.FTSE 100 - RiserseasyJet (EZJ) 1,202.00p +6.37%London Stock Exchange Group (LSE) 1,401.00p +4.94%Land Securities Group (LAND) 970.50p +3.85%Aberdeen Asset Management (ADN) 477.20p +2.96%Marks & Spencer Group (MKS) 432.90p +2.92%TUI Travel (TT.) 355.60p +2.42%Prudential (PRU) 1,190.00p +2.32%Schroders (SDR) 2,536.00p +2.22%Lloyds Banking Group (LLOY) 59.99p +1.92%Barclays (BARC) 319.85p +1.85%FTSE 100 - FallersPolymetal International (POLY) 666.50p -6.39%ITV (ITV) 127.10p -3.49%Morrison (Wm) Supermarkets (MRW) 281.80p -3.46%Sainsbury (J) (SBRY) 379.30p -2.82%G4S (GFS) 251.80p -2.74%Randgold Resources Ltd. (RRS) 4,855.00p -2.69%Evraz (EVR) 159.50p -2.45%Wood Group (John) (WG.) 809.50p -2.06%Royal Dutch Shell 'A' (RDSA) 2,240.50p -1.80%Amec (AMEC) 1,056.00p -1.77%FTSE 250 - RisersKeller Group (KLR) 940.00p +8.42%Enterprise Inns (ETI) 106.60p +7.68%Restaurant Group (RTN) 510.00p +4.96%Centamin (DI) (CEY) 38.07p +4.79%Barratt Developments (BDEV) 322.00p +3.40%Ashtead Group (AHT) 633.50p +3.26%Persimmon (PSN) 1,131.00p +3.01%Berkeley Group Holdings (The) (BKG) 2,183.00p +2.73%Synthomer (SYNT) 222.50p +2.68%Savills (SVS) 597.50p +2.66%FTSE 250 - FallersCarillion (CLLN) 254.70p -5.32%Inmarsat (ISAT) 671.50p -4.07%Premier Oil (PMO) 378.20p -3.84%Kenmare Resources (KMR) 28.45p -3.62%Vesuvius (VSVS) 364.40p -2.38%Kazakhmys (KAZ) 359.20p -2.34%Drax Group (DRX) 577.00p -2.20%Computacenter (CCC) 443.90p -2.20%TalkTalk Telecom Group (TALK) 220.40p -2.04%SDL (SDL) 350.70p -1.74%BC