Equities in London were slightly lower on Wednesday afternoon, hours before the Federal Reserve decision, while stocks in New York are set to open higher after struggling on Tuesday.
The FTSE 100 index was down 10.91 points, 0.1%, at 8,694.32. The FTSE 250 was down 11.68 points, 0.1%, at 20,086.19, and the AIM All-Share was down 0.70 points, 0.1%, at 693.58.
‘The FTSE 100 was lower on Wednesday after selling resumed in the US overnight, with airlines and miners among those taking a step back,’ says AJ Bell analyst Russ Mould.
easyJet and Wizz Air were 0.8% and 4.3% lower at midday on Wednesday. Glencore fell 1.5%, while Anglo American shed 1.2%.
The Cboe UK 100 was down 0.2% at 868.22, the Cboe UK 250 was down 0.1% at 17,501.94 and the Cboe Small Companies was down 0.1% at 15,665.41.
Investors are keenly-awaiting a US Federal Reserve decision at 1800 GMT.
‘Currently, market expectations indicate that the Federal Reserve will keep interest rates unchanged in its meeting scheduled for Wednesday, a decision that will remain a key focus for the markets. Investors expect the Federal Reserve to remain cautious in taking any new steps regarding rate hikes amid ongoing concerns about inflation and economic uncertainty,’ commented XS.com analyst Rania Gule.
Stocks in New York were called higher. The Dow Jones Industrial Average was called 0.1% higher, the S&P 500 index 0.3% higher, and the Nasdaq Composite up 0.4%.
In European equities on Wednesday, the CAC 40 in Paris was 0.5% higher, while the DAX 40 in Frankfurt was down 0.4%.
The pound was quoted at $1.2975 at midday on Wednesday in London, down from $1.2991 at the equities close on Tuesday. The euro stood at $1.0908, lower against $1.0931. Against the yen, the dollar was trading higher at JP¥149.90 compared to JP¥149.55.
Gule added: ‘If the Federal Reserve signals a preference for maintaining the current interest rate policy, this could put pressure on the US dollar, allowing the euro some room for recovery.’
In London, Pri0r1ty Intelligence gained 25% on Wednesday.
The artificial intelligence company focused on professional growth services for SMEs has won a ‘significant’ contract with blood cancer charity Leukaemia Care, worth up to £100,000.
Leukaemia Care will also receive a year’s subscription to Pri0r1ty’s core software-as-a-service offering as part of the deal, which Pri0r1ty believes ‘will open up significant opportunity for further AI consultancy projects to deliver strong additional revenue to the group.’
Trakm8 tumbled 26% as a contract fall-through hurt its 2024 results guidance.
The provider of fleet management software and data to insurers now expects full-year revenue to be just under 10% lower than the year before, as an anticipated Optimisation contract ‘will not now be forthcoming’. It warned of a consequential impact on profit, too.
Leading the FTSE 100, M&G was up 2.9% despite posting a swing to a loss during 2024. It had opened up around 4.2% higher.
‘Increased geopolitical uncertainty and market volatility continue to weigh on customer and client sentiment and pose a significant challenge to financial institutions across the globe. At M&G, we are confident that we can navigate this uncertain environment by leveraging the strength of our business model which we believe will remain a source of competitive advantage,’ CEO Andrea Rossi said.
Softcat led the way among mid-caps, rising 12%. The provider of IT infrastructure products and services said pretax profit in the six months to January 31 rose 12% to £76.7 million from £68.2 million a year prior. Operating profit improved 10% on-year to £73.7 million, a ‘record’ and slightly ahead of board expectations.
Softcat now expects operating profit growth of a low-double-digit percentage for the full-year, its guidance upgraded from high-single-digit growth. It hailed an ‘encouraging second half pipeline’.
Brent oil was down at $70.45 a barrel at midday in London on Wednesday, from $70.76 late Tuesday.
‘Oil markets continue to face some downside risks, mainly driven by global economic concerns. U.S. tariffs on Canada, Mexico, and China have heightened fears of a recession, which could dampen oil demand. This economic uncertainty has placed a cap on crude prices, as traders remain cautious of weaker consumption. The threat of further tariff escalations or a slowdown in global growth could push oil prices lower, limiting substantial upside potential in the near term,’ commented Kudotrade analyst Konstantinos Chrysikos.
Gold was quoted at $3,039.41 an ounce, up against $3,035.29 late on Tuesday.
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