The FTSE 100 opened higher in early trading before falling flat as it took comfort from Tesla results overnight, increasing stability in the oil price, and a raft of positive trading updates.

The blue chip index eked out a 0.4% gain on opening before falling back to trade flat at 7,622 as markets digested Tesla results. The Nasdaq suffered a 1% loss yesterday after Netflix reported its first drop in subscriber numbers in a decade, but Elon Musk’s electric vehicle company posted operating profits that were up over 500%, which Hargreaves Lansdown lead equity analyst Sophie Lund-Yates should ‘put the worst tech fears to bed’.

She added that the positive start from the FTSE 100 was due to ‘a lack of shocks rather than anything new overtly driving that change’, as the Ukraine crisis rumbles on and ‘uncertainty around the geopolitical backdrop will be keeping a ceiling on how far western markets can climb over the coming weeks and months’.

Central bank chairs from the UK, US, and Europe meet today and the market will be ‘very sensitive to any concluding remarks’.

‘With global growth forecasts being cut at the same time as interest rates being hiked, there is increased anxiety of recessions coming down the pipes,’ said Lund-Yates.

There was a glimmer of good news in oil prices, as despite the elevated price, it has stabilised at around $103 a barrel.

BA-owner International Consolidated Airlines (IAG) was the FTSE’s biggest riser, gaining 4.2%, or 6p, to 150p on improved sentiment to travel stocks as the world reopens after Covid-19.

Rentokil (RTO) rose 2.3%, or 12p, to 527p after the pest control firm announced sales growth of 1.8% to £722m in the first quarter and confirmed its acquisition of US peer Terminix was on track and the company performing as expected.

Antofagasta (ANTO) dropped to the bottom of the index, shedding 8.3%, or 136p, to £14.99 after the precious metal miner reported a reduction in production of copper and gold, with the former down 24% and the latter 35%.

The news weighed on its peers with:

• Anglo American (AAL) down 6.6%, or 268p, at £37.67
• Glencore (GLEN) down 4.7%, or 24p, at 494p
• and Rio Tinto (RIO) down 2.6%, or 157p, at £56.93

The FTSE 250 managed to hold on to its small gains or 0.17%, or 35 points, to trade at 21,119.

The mid-cap index was bolstered by Ibstock (IBT), which jumped 8.1%, or 12p, to trade at 180p. The brick maker reported trading ahead of expectations and confirmed that cost inflation has not badly hit margins. The group has almost fully hedged its energy cost for the first half of the year, is 75% covered for the second half, and a third covered for next year.

The travel buzz lifted Wizz Air (WIZZ) 3.7%, or 113p, to £21.30, Easyjet (EZJ) added 3.1%, or 17p, to 581p, and holiday group Tui (TUI) put on 2.2% at 243p.

Gambling company Rank (RNK) kept the mid-caps in check by tumbling 8.4%, or 10p, to 117p after cutting full-year guidance and warning of inflationary pressures.

Payback at NewRiver

NewRiver (NRR ) jumped 8.5% to 94.1p from a 35% discount below asset value as the retail-focused real estate investment trust issued an encouraging full-year trading update. This showed a return to capital growth of 2.5% in the second half of the year to 30 March and flagged up the prospect of a return to capital to shareholders.

In other investment trust news, AEW UK Reit (AEWU ) gained 3% to 125.9p from a 1% premium after notching up another strong quarter with total investment return of 7.4% in the first quarter, driven by holdings in the office and industrial sector.

Taylor Maritime Investments (TMI ) rose 2.6% to $1.48 from a 1%v discount as the shipping fund reported a 22% investment gain in the first quarter and said it was considering paying a special dividend next month.  

Montanaro UK Smaller Companies (MTU ) advanced 4.5% to 126.6p as bargain hunters moved in after the shares dropped to a 10% discount below net asset value.