London midday: United Utilities leads stocks higher

14th Aug 2012 11:33

- UK CPI inflation rises in July- Eurozone GDP falls in line with forecasts- United Utilities up on takeover speculationThe Footsie had moved broadly sideways in morning trade on Tuesday, holding on to the gains made in the opening hour, as investors digested a barrage of economic data from home and away.The UK Consumer Prices Index (CPI) rose at an annual rate of 2.6% in July - wrong-footing experts who had forecast a fall to 2.3%. The wider Retail Prices Index (RPI) rose 3.2%, up from 2.8% in June. Second-quarter Eurozone gross domestic product (GDP) contracted by 0.2% from the previous three months (down 0.4% year-on-year), according to a 'flash' estimate by Eurostat.German economic growth slowed down from 0.5% to 0.3% in the second quarter of 2012, but economists were expecting GDP to increase by just 0.2%. France, on the other hand, registered its third consecutive quarter of zero growth although this was still better than the 0.1% contraction that the experts were expecting.In contrast, a key measure of sentiment in Germany missed expectations in August, it was revealed today. The German ZEW index fell to -25.5, from -19.6 in July; the consensus estimate was for a small improvement to -19.3.Also in focus were the minutes from the latest Bank of Japan policy-setting meeting which showed that some board members wouldn't be against future policy options to combat a slowdown. It was revealed yesterday that annualised Japanese GDP increased by 1.4% in the second quarter, well below the 5.5% growth the previous quarter and under the 2.3% expansion expected.FTSE 100: Utilities and Standard Life provide a liftUnited Utilities was putting in an impressive performance today on the back of rumours that overseas investor from Canada and the Middle-Easy are eyeing up the company as a break-up candidate. Sector peers Severn Trent and Pennon were also wanted.Life assurance behemoth Standard Life jumped as it saw profits rise in the first half after a strong performance in the UK, its biggest market. Operating profit before tax was up 15% with assets under administration 3% higher than the year before. Anglo-Swedish drugs colossus AstraZeneca raised earnings guidance a tad after signing a deal with US pharmaceuticals titan Pfizer, pushing shares higher.Russian steel giant Evraz advanced after saying that a strike Highveld Steel and Vanadium operations in South Africa is now over and production has been resumed.Terrestrial broadcaster ITV gained after Nomura upgraded the stock late last night from 'neutral' to 'buy', saying that the current share price "does not reflect the significant improvements in ITV's underlying business or potential optionality."Building materials group CRH dropped after poor weather and tough economic conditions in Europe saw earnings slip in the first half of the year. EBITDA fell 1% year-on-year in the six months to June 30th, more or less in line with the company's guidance in May of "close to last year's level". FTSE 250: Lonmin drops after strikes and delaysPlatinum group metals (PGMs) producer Lonmin was leading the fallers on the second-tier index after reporting a "serious and ongoing outbreak of violence" at its West Marikana mine operations in South Africa, killing seven Lonmin workers and two policemen. Production has been "severely disrupted" since Friday August 10th following an illegal strike by Rock Drill Operators and increased incidences of violence and intimidation since then. Heading the other way was Egypt-focused gold miner Centamin which has stuck with its production guidance after second quarter output hit record levels. Scottish distribution firm John Menzies was out of favour after seeing revenues fall in the first half as the firm was hit by tough economic conditions and a weak euro. FTSE 100 - RisersUnited Utilities Group (UU.) 749.00p +8.71%Standard Life (SL.) 273.10p +6.39%Severn Trent (SVT) 1,768.00p +3.51%Pennon Group (PNN) 759.50p +3.26%Evraz (EVR) 275.20p +2.50%Prudential (PRU) 819.50p +1.80%Marks & Spencer Group (MKS) 355.60p +1.60%Johnson Matthey (JMAT) 2,283.00p +1.51%Tesco (TSCO) 333.85p +1.44%ITV (ITV) 84.20p +1.38%FTSE 100 - FallersCRH (CRH) 1,129.00p -7.38%Kingfisher (KGF) 284.30p -1.59%Pearson (PSON) 1,223.00p -0.73%Royal Bank of Scotland Group (RBS) 221.00p -0.63%Wolseley (WOS) 2,433.00p -0.61%Aviva (AV.) 321.30p -0.50%Petrofac Ltd. (PFC) 1,479.00p -0.47%Tate & Lyle (TATE) 661.50p -0.45%Weir Group (WEIR) 1,722.00p -0.35%Rio Tinto (RIO) 3,194.00p -0.30%FTSE 250 - RisersSavills (SVS) 383.60p +2.46%Carpetright (CPR) 618.00p +2.32%Galliford Try (GFRD) 624.00p +2.30%Barr (A.G.) (BAG) 447.80p +2.21%Millennium & Copthorne Hotels (MLC) 483.40p +2.20%Henderson Group (HGG) 107.70p +2.09%JD Sports Fashion (JD.) 680.00p +1.95%Persimmon (PSN) 668.00p +1.83%Paragon Group Of Companies (PAG) 183.30p +1.83%Catlin Group Ltd. (CGL) 455.00p +1.79%FTSE 250 - FallersLonmin (LMI) 706.50p -4.66%Aquarius Platinum Ltd. (AQP) 35.89p -3.78%Avocet Mining (AVM) 90.10p -3.01%Kenmare Resources (KMR) 39.35p -2.70%Essar Energy (ESSR) 109.10p -2.50%Menzies(John) (MNZS) 615.00p -2.38%Daejan Holdings (DJAN) 3,105.00p -2.20%TUI Travel (TT.) 200.80p -2.00%Howden Joinery Group (HWDN) 142.30p -1.52%African Barrick Gold (ABG) 398.10p -1.46%BC